From the official groundbreaking in August 2019, to the official unveiling in November 2021, and now to the launch of the first Chinese-made whisky product in December 2023, Pernod Ricard has gradually gotten rid of the "unsuitability" of its layout in China in the past four years.
On December 18, the wine news learned from Pernod Ricard's official *** that Pernod Ricard officially launched Diechuan pure malt whisky, which is the first "made in Leshan" pure malt whisky released by Pernod Ricard after settling in Leshan.
However, at the same time, imported liquor companies are frequently taking advantage of China's market share, and domestic liquor companies are awakening to their awareness of whisky layout
Pernod Ricard***
“made in china”
The Diechuan single malt whisky launched this time is the first "made in Leshan" pure malt whisky released by Pernod Ricard。It is reported that the product has a design output of 4 million bottles per year, and the production is still in its infancy. In terms of sales, Pernod Ricard will exclusively supply the domestic market through its three sales networks.
In view of the future sales layout and expectations, Jiuxun consulted the relevant person in charge of Pernod Ricard, but as of press time, the other party has not replied.
From the germination of the idea of building a factory to the landing of products, Pernod Ricard's dream of "Chineseization" has lasted for nearly 7 years. It is understood that as early as 2016, Pernod Ricard had already considered building a factory in China. In 2019, Pernod Ricard selected this malt whisky factory at the foot of Mount Emei in Sichuan Province, according to the plan, the entire distillery covers an area of 13 hectares and has whisky making equipment.
The vastness of China's whisky market has made Pernod Ricard gradually realize that tailor-made products for Chinese consumers is one of the main directions.
In this context, Pernod Ricard participated in the CIIE for the sixth time this year, bringing nearly 70 cognac and whisky products, including Pernod Ricard's "tailor-made" products for the Chinese market. It is reported that during the Expo, Pernod Ricard announced the first release of two "aged grade" wines of Martell's single-origin series in the Chinese market - XO Cognac from Grande Champagne and XXO Cognac from Boydor District.
Pernod Ricard***
While accelerating the layout of the production side, Pernod Ricard is also trying to promote sales in the Chinese market through multiple channels.
In Hainan duty-free channel, in June this year, Pernod Ricard, the world's largest Martell duty-free boutique, settled in Haikou Riyue Plaza Haikong Global Boutique Duty-Free City. Last year, following the arrival of the first Martell Duty Free boutique in Hainan, Pernod Ricard opened its first cross-category boutique in the travel retail sector in Haikou.
In addition, in May this year, Sinopec Sichuan Sales and Pernod Ricard signed a strategic cooperation ceremony in Hangzhou, according to the content of the agreement, the two companies will expand the wine sales business in Sichuan and the whole country. Guo Binchen, Director and General Manager of Pernod Ricard China, said at the signing ceremony that he is pleased to cooperate with Sinopec Sichuan Sales, hoping to gain more favor from Sichuan and Chinese consumers through its strong sales network and domestic enterprise resources.
Sinopec Sichuan sales***
Sales in China decreased by 8 percent
Behind the continuous deepening of domestic production and sales layout, there is a hidden instability of Pernod Ricard's performance and dynamic sales.
According to Pernod Ricard's first quarter report for fiscal year 2024 (July 1 to September 30, 2023), the company's net sales were 304.2 billion euros (about 235 yuan.)6.9 billion yuan), down 2% year-on-year. In Asia and the rest of the world, the company reported first-quarter net sales of 14At 8.8 billion euros, the performance was relatively stable compared to the same period last year. Among them, net sales in the Chinese market decreased by 8% year-on-year. In terms of product categories, net sales of strategic international brands, including Scotch whisky Jameson and Absolut Vodka, fell 3%.
In this regard, Xiao Zhuqing, a wine analyst, pointed out that the entire Chinese wine industry is facing the problem of insufficient purchasing power, and consumers' future income expectations are very pessimistic, resulting in consumption downgrades. The consumption crunch and consumption downgrade have had a big impact on the frequency of whisky consumption.
Screenshot of Pernod Ricard's financial report.
This is the first time that Pernod Ricard's sales have fallen in the new fiscal year after achieving a high performance in fiscal 2023. In the face of such a fall, Pernod Ricard offered the "hole card" of raising prices.
On April 12, Pernod Ricard (China)** officially released a price adjustment document, raising prices for almost all of the company's main line products, and the overall increase has ranked high in recent years. The highest increase in Pernod Ricard's whisky is the Royal Salute, with an overall increase of about 12%;Glenlivet's best-selling product, the 12-year-old vintage, is also up more than 12%;The overall price increase of Ballantine's has exceeded 8%;Most of the other products rose by 3%-5%, which is in a relatively conventional range.
In response to the price increase, the highest-selling product in the store, Jameson Irish Whiskey 500ml, has been sold 7000+, priced at 342 yuan bottles, and the price is 82 yuan bottles after the discount, and the Ballantine's Special Alcohol Whiskey 200ml has been sold for 1000+, priced at 336 yuan bottles, and the price is 36 yuan bottles after the discount. From the perspective of single malt whisky categories, the overall trend is inversely proportional to sales, with less than 20 sales of products of more than 1,000 yuan, such as Glenlivet 8-year-old three-barrel aged 700ml and Glenlivet 21-year-old 700ml.
Screenshot of Pernod Ricard Tmall***.
Some distributors said that it is a routine operation to raise the first grade of foreign wine every year, but the adjustment range this year is relatively large, so consumers will feel that it will be particularly obvious. In the current economic environment, consumers' willingness to buy is insufficient, the increase is too high, and if the dynamic sales are not timely, it is likely to form a large inventory pressure.
How to keep it fresh
Although Pernod Ricard has built the distillery "at the doorstep" and taken the lead in launching corresponding products, new and old rivals at home and abroad have never stopped.
How China's market share will be distributed is still uncertain.
According to the "100 Bottles Whisky 2023 Industry Prospect Report" released by 100 Bottles APP, as of October 2023, there are 43 domestic whisky distilleries. Among them, the number of wineries in Yunnan, Qianchuan and Sichuan reached 11.
Screenshot of the 100 bottles app.
Domestic local liquor companies are speeding up the layout of whisky business. The Jiuxi whisky production project has been implemented, and domestic liquor companies such as Gujinggong, Yanjing Co., Ltd., and Langjiu have announced their involvement in the whisky field. In addition, in November 2021, Diageo announced an investment of 500 million yuan to build a whisky distillery in Eryuan, Yunnan Province, which is expected to start production this year.
Yin Kai, founder of Chaohui (Shanghai) Brand Management***, said that the return on investment in whisky distilleries is very long, which requires a long period of consumer cultivation and waiting for the market to reach a certain level of maturity.
Diageo***
In terms of horizontal comparison, wine companies are comparable in the degree of cultivation of local consumers. In August, Diageo officially unveiled its Shanghai R&D center in Shanghai. At the end of last year, Diageo released a selection of whiskies based on the theme of China's eight cuisines. At the end of 2022, The Macallan opened the world's largest duty-free boutique in the global travel retail channel in Haikou, launched more high-end whisky products such as the Brilliant range in China, and will open a physical store in Guangdong Province for the first time this year or next.
In response to the development trend of new channels and rejuvenation in the future, Guo Binchen, CEO of Pernod Ricard China, has publicly stated that DIY (do-it-yourself) ready-to-drink and live house (small live performance) models have become two new growth points in the market, and for this reason, Pernod Ricard's distribution model has also changed rapidly, through online and offline linkage, making full use of diversified channels and more types of social ** platforms to seamlessly reach consumers.
Yin Kai mentioned that the whisky track has attracted attention from inside and outside the industry and has become the largest alcohol investment hotspot after soy sauce wine. In addition to international wine companies and capital, local institutions and individuals in China are actively participating and deploying. The flame of everyone collecting firewood is high, and there is choice and competition, which will make the market prosperous.
AuthorZiyu.
EditNian Yi.
TypographyWang Yuetao.
*Note: Unauthorized ** or adaptation is prohibited, otherwise it will be prosecuted according to law.