FTAs a ‘two-way street’ for India; value over volume is the mantra: Pernod Ricard’s Jean Touboul

Pernod Richard

• Pernod Ricard expects free trade deals to boost premium spirits in India
• Company focuses on value, not just volume, for Indian consumers
• Pernod Ricard focuses on growth in tier-2 and tier-3 cities

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With India having concluded its free trade agreements with the UK and the European Union, global spirits major Pernod Ricard sees  lower import barriers could expand premium opportunities rather than disrupt its India-led manufacturing model, CEO Jean Touboul said during the  Rising Bharat Summit 2026 in Delhi.

The company, which produces nearly 95–97 percent of its volumes locally, said freer trade would create two-way flows, opening export avenues for Indian-made brands even as select imported labels cater to distinct premium segments

"As an international businessman, I'm always supportive of free trade agreements, and I think it's really bring opportunities both ways," Touboul stated, highlighting that these deals allow for a smoother exchange of global and local expertise.

He dismissed concerns that imported labels would cannibalize local brands, noting that they cater to different price points. Instead, he argues competition fosters excellence: "Having competitors is great because it pushes you to be better. I think the fantastic rise of Indian single malt that we see today, probably some of it is inspired and pushed by the great Scottish single malt... and Indians are jumping in with their own touch."

Further,  the maker of Royal Stag and Blenders Pride is focussing value over volume in India.

For Pernod Ricard, the strategy is clear: "It's more value than volume," Touboul emphasized. "Value is more important, and we really, really look at a way to deliver value to the consumer for a really great experience. People, of course, they want a great liquid when they drink spirits, but they want the lifestyle and the experience that go with it, and we really pay attention to deliver all of it," he explained.

 Beyond Metros: The Tier 2 and 3 strategy

Pernod Ricard’s strategy is increasingly looking past India’s tier-1 metros. Touboul identifies "disproportionate growth" in tier-2 and tier-3 markets, which he describes as extremely important for the company’s long-term trajectory. The strategy involves innovating with local brands—like the recently launched umbrella brand Exclamation—to cater to consumers who are at the beginning of their "consumption journey."

"We cannot rely only on Metro. Metro are important for us, but it's not enough," Touboul said. By leveraging 30 commercial offices and 19 plants across the country, the company aims to stay "locally relevant".

Premiumization & Gen-Z

Addressing global trends of Gen-Z consuming less alcohol, Touboul, said, "Gen Z consuming less is debatable, and you may see some people consuming less, but it's fine. We have always been here with a strategy of premiumization."

He noted that the Indian dynamic is fundamentally different due to two major "tailwinds": a demographic dividend and rising disposable income. Approximately 20 to 25 million new individuals reach the legal drinking age in India every year, providing a massive cohort of potential consumers, he flagged.

"We are seeing more and more people interested in our categories where we provide not only a good liquid but also a great experience, and being part of the lifestyle of our consumer is really what we aim for," Touboul added.