China: Pernod Ricard releases first China whisky

Pernod Ricard SA launched its first China-made whisky as the alcohol giant looks to tap rising local demand for premium liquor despite the country’s sluggish economic recovery, The Edge Malaysia reported on December 12.

The Chuan Pure Malt Whisky, made in the Paris-based firm’s Mount Emei distillery in Sichuan province, will commence sales on December 13, chief executive officer Alexandre Ricard told reporters during a tour of the facility on December 12.

The spirit will initially retail at 888 yuan (RM579.93) per 700 millilitre bottle through Pernod’s key distributors in China and it will later be available on e-commerce platforms. Pernod will also sell two other types of whisky exclusively in the distillery’s retail store for 1,199 yuan and 1,488 yuan respectively. No exact time table was disclosed for when Pernod plans to make The Chaun available outside of China.

Global booze giants from Pernod to Diageo plc are doubling down on efforts to court drinkers in Asia, especially China and India, after the region overtook the European Union last year to become the biggest buyer in the US$7.5 billion (RM35 billion) Scotch whisky export market. In the first half of this year, six of the 10 largest export destinations for the vaunted spirit were in Asia.

In particular, Pernod — the maker of Absolut vodka and Perrier-Jouet champagne — has been expanding its footprint in China, opening its first distillery in the country in 2021. Pernod is the first international firm to make whisky in China and committed one billion yuan as part of an effort to create a brand that would suit local tastes.

Pernod also started selling a 24-year-old Scottish whisky exclusively in China last year and plans to launch more products as demand for premium booze remains resilient even as the economy grapples with an ongoing property crisis and weak business confidence.

“The level of investment we’ve committed behind this project is important enough to show a very strong confidence we have in the potential of the Chinese market and its growth,” said Ricard. “We will always have volatility and cycles in our industry and more generally speaking in the world. But what we do look at are the underlying fundamentals,” including the long-term premiumization and a growing middle-class in the country, he said.

Pernod’s Chinese whisky has an intense flavour to fit in with strong tasting local cuisine, including the hot pots and spicy food that mark out Sichuan food.

The Chinese consumer is becoming “increasingly sophisticated”, said Ricard, who added that they are looking for “more diversified” experiences.

While Pernod’s China sales fell sharply in the last quarter, the company has said it has seen signs of improved takings in September and October. Pernod is also optimistic for the rest of the year as China celebrates its first festive season since the government relinquished strict pandemic controls a year ago.

Pernod and other major whisky producers have been working for years to get Chinese consumers to spend more on premium spirits and displace Moutai, a prized Chinese fiery liquor made out of sorghum and wheat, that’s widely imbibed at weddings and celebrations.

The whisky market in China has witnessed double-digit annual growth in the past five years and single-malt whisky posted more than 30%, according to Jerome Cottin-Bizonne, head of Pernod Ricard’s China business.

With imported spirits only accounting for less than 2% of China’s total alcohol consumption, Pernod still sees “a growing appetite from consumers to international spirits”, he said. “People want to try new products, new experiences.

12 December, 2023