Pernod Ricard’s organic sales in India were up by 19% in the first quarter (Q1) of 2027 as the French firm’s troubles in China and the US persisted.
The Paris-headquartered company’s organic net sales during Q1 of its 2027 financial year (FY27), measured from July to September, totalled €2.23 billion (US$2.5bn), a slight decrease of 0.9%.
On a reported basis, sales decreased by 6.3%.
India, a market highlighted as a “clear growth driver” by CEO and chairman Alexandre Ricard after Pernod closed its 2026 financial yearwas a bright spot for the Jameson owner.
Pernod noted it is taking ‘preparatory steps’ for a potential initial public offering (IPO) in Indiawhich remains subject to board approval.
The company’s Q1 sales in India increased by 19%. Imported spirits Jameson Irish Whiskey, Absolut Vodka and Ballantine’s all posted double-digit growth, as did Indian whiskies Royal Stag and Blenders Pride.
China, on the other hand, remained a tough market for Pernod, with sales falling by 25%.
The company’s ‘cautious trade optimism’ ahead of the Mid-Autumn Festival was validated in Martell’s off-trade depletions returning to growth after a successful season.
The Cognac brand’s on-trade performance, however, felt ‘the pressure of the regulatory crackdown’. Cognac was subject to anti-dumping duties in China from October 2024, although major producers benefited from minimum price commitments from July 2025.
Underlying trends for the rest of the portfolio in China were described as resilient, with The Glenlivet, Royal Salute, Jameson and Olmeca Tequila all giving ‘strong performances.’
Elsewhere in Asia, Japan continued to show ‘dynamic growth’, while South Korea and Taiwan both returned to growth. Additionally, Türkiye led ‘strong results’ in Asia and the Middle East.
Overall, Pernod’s sales in Asia and the rest of the world rose 9%.
US challenges
Pernod’s struggles in the US continued, although the 10% drop in Q1 was an improvement on the same period last year, when sales decreased by 16%.
Inventory adjustments were cited as a main cause for the decline.
More positively, Pernod noted a ‘marked improvement’ in Skrewball’s performance and a ‘strong rebound’ for Malibu. Both brands debuted innovations in the US in Q1: Malibu Pink and Skrewball Peanut Butter & Jelly flavoured whiskey in a can.
Total sales in the Americas region were down by 9%.
In Canada, the decline was described as ‘modest’; Brazil’s decrease was said to be ‘largely due to phasing’; and Mexico’s sharp fall was a result of continuing weak consumer demand.
A 6% decline in Europe was described as a ‘soft start to the year’, with Germany singled out in western markets for a persisting sharper decline.
Sales in global travel retail (GTR) were down by 4%. In the same period last year, they plunged by 15% largely due to a weak market in Asia.
The ongoing conflict in the Middle East was said to have ‘disproportionately affected’ sales in Asia’s travel retail space. In America, phasing negatively impacted travel retail sales, while high traveller numbers in Europe helped that market.
Portfolio performance
Pernod’s Strategic International Brands segment was up by 1%.
Jameson, Ballantine’s and Malibu were noted for ‘strong momentum’, and Chivas Brothers and Royal Salute for ‘modest growth’.
Absolut and Martell both declined and were impacted by inventory adjustments.
Indian whiskies Royal Stag and Blenders Pride drove 6% growth for Pernod’s Strategic Local Brands division, where there was also solid momentum for Olmeca.
Sales in the Speciality Brands division slid by 5%, which Pernod said was ‘largely driven’ by the US. Código and Monkey 47however, were noted for ‘good results’.
Stable outlook for rest of the year
For the rest of fiscal 2027, Pernod said it expects net sales to be broadly stable, balanced by declines in the US and China and the positive momentum in the rest of the world.
The company also said it would strongly defend organic operating margin with strict cost control and by accelerating the implementation of its operational efficiency initiatives. Organic operating margin is expected to be €1bn (US$1.12bn) from FY26 to FY28.
In the medium term (FY27-FY29), Pernod projects growth to be at the lower end of 3% to 6% annually.
“We are adapting our strategy to capture growth opportunities, and our operating model to meet changing circumstances, including through our ongoing digital transformation to unlock further efficiencies,” Pernod Ricard said in a statement. “We are confident in the continued engagement of our teams, and we remain focused on delivering sustainable value growth over time.”
In spring this year, Pernod Ricard was revealed to be in discussions for a merger with Brown-Forman. However, talks ended after the firms failed to reach mutually agreeable terms.
Related news
Pernod Ricard turns to India as key markets flounder
US-China slump hits Pernod Ricard FY sales
Pernod Ricard takes full ownership of Italicus
Source: www.thespiritsbusiness.com
