Why Did Pernod Ricard Sell Imperial Blue and What Comes Next?

Pernod Ricard, one of the largest spirits companies in India, has made a major change in its strategy by selling Imperial Blue, a mass-market whisky brand. The move reflects the company’s growing focus on higher-value products as more Indian consumers choose premium spirits over cheaper options.

Why Did Pernod Ricard Sell Imperial Blue? 

Imperial Blue was a huge volume brand, selling close to 20 million cases a year and making up a significant share of Pernod Ricard’s sales. However, the brand operated at a low price point, around ₹400 for a 750 ml bottle, and delivered thinner margins. 

By selling it, the company frees up resources and removes the lowest tier of its Indian portfolio. This allows it to focus on categories that offer better profitability and long-term growth.

Pernod Ricard Plans to Sell 1 Million Cases of Xclamation

After the exit, Pernod Ricard is doubling down on its mid-premium and premium segments. It has launched Xclamation, a new India-made brand that will span whisky, vodka, rum, gin and brandy. 

Priced between Royal Stag and Blenders Pride, it is designed for consumers who are ready to trade up. The company plans to introduce the brand in multiple states and scale it to one million cases within a year. Alongside this, its imported labels, including Scotch and international spirits, now make up a larger part of its India business.

Trends in India’s Alcohol Market

India continues to be one of the world’s fastest-growing alcohol markets. In 2024, industry value grew by 9% to almost US$40 billion, driven by rising incomes and a clear shift towards better-quality alcohol. The India–UK free trade agreement is also expected to lower duties on Scotch whisky and gin over time, making premium imports more affordable.

Tax Challenges and Regulatory Hurdles

Despite strong demand, the industry faces unpredictable regulation. States such as Maharashtra have sharply increased excise duties, pushing retail prices up by as much as 35–40% even after companies absorbed part of the impact. This has forced many consumers to trade down temporarily.

Read more: 40% GST on Sin Goods: Does Alcohol Fall Under This Slab?

Conclusion

By selling Imperial Blue and investing in premium spirits, Pernod Ricard is aligning its India strategy with changing consumer preferences and better profit opportunities. While high taxes and regulatory issues continue to challenge the industry, the company expects strong long-term growth as more Indian consumers move towards mid- and premium-tier alcohol.

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