India Sees Free Trade Agreements as Equitable Partnerships, Prioritizing Value Over Volume Growth

Pernod Ricard Sees Opportunities in India's Free Trade Agreements

Pernod Ricard, a global spirits major, sees lower import barriers in India as an opportunity to expand premium sales rather than disrupt its India-led manufacturing model. The company's CEO, Jean Touboul, made this statement during the Rising Bharat Summit 2026 in Delhi.

Key Highlights

• 95-97% of Pernod Ricard's volumes are produced locally in India.
• Freer trade will create two-way flows, opening export avenues for Indian-made brands while select imported labels cater to distinct premium segments.
• The company is focusing on value over volume in India, prioritizing delivering value to consumers for a great experience.
• Pernod Ricard is innovating with local brands, such as Exclamation, to cater to consumers in tier-2 and tier-3 markets, which are experiencing disproportionate growth.

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Premiumization and Gen-Z

• Pernod Ricard is seeing opportunities in premiumization in India, driven by a demographic dividend and rising disposable income.
• Approximately 20-25 million new individuals reach the legal drinking age in India every year, providing a massive cohort of potential consumers.
• The company aims to provide not only a good liquid but also a great experience, being part of the lifestyle of its consumer.

Strategy and Expansion

• Pernod Ricard is focusing on tier-2 and tier-3 markets, leveraging 30 commercial offices and 19 plants across the country to stay locally relevant.
• The company's strategy is to deliver value to consumers, rather than just focusing on volume sales.

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