Pernod Ricard focuses on China’s millennial market
French distiller Pernod Ricard SA is targeting Chinese millennials with services such as cocktail-kit delivery as it aims to double the share of international spirits in the country’s 1-trillion yuan ($202 billion) alcohol market.
After establishing itself in China with high-end brands such as Chivas Regal whisky and Martell cognac, the company is looking to sustain growth by appealing to the country’s emerging middle class, CEO Alexandre Ricard said. The goal: to drive the share of westernstyle spirits in China from the current 1 per cent of volume to 2 per cent by 2025.
Pernod is making a big bet that its mass-market brands such as Absolut Vodka and Ballantine’s whisky will catch on in a country where the drinking culture is dominated by the local grainbased baijiu. It says it’s leading the way with a 40 per cent market share of China’s international spirits segment, ahead of rivals like Diageo Plc.
Many of the French company’s local innovations are adapted to the fastmoving e-commerce market. Since consumers get quick delivery from ordering online, they like smaller bottle sizes, Ricard said. The company is also selling kits that provide all the ingredients for classic cocktails, delivered to homes within an hour.
In another pitch to Chinese millennials, Absolut vodka sponsored a television rap contest. Pernod Ricard has also begun selling premixed highballs, a combination of whiskey and soda that was popularized by Japanese convenience stores.
Pernod Ricard is trying to convert baijiu drinkers with a Chivas line, named Distinction, that’s meant to be drunk in small shots during multicourse meals, as baijiu is.
Asia has fuelled Ricard’s growth, with net sales in twin engines of China and India growing19 per cent and14 per cent in the nine months through March.