Pernod Ricard serves up full cellar at second CIIE

A veritable fully stocked bar filled with Martell, Chivas, Royal Salute, Ballantine's, Absolut Vodka complemented by a vast array of prime wines and spirits provided by Pernod Ricard China, served attendees with discerning palates at the second China International Import Expo in Shanghai which ended on Sunday.

In cooperation with 16 French companies, the French alcoholic drinks maker, Pernod Ricard, made its second appearance at the CIIE with a doubled exhibition area, demonstrating its tipples from five regions around the world, covering a rich portfolio from entry-level to high-end luxury.

As the only international wine and spirits group participant boasting a separate exhibition booth at this year's event, Pernod Ricard not only brought its distinct products but also built a tasting room with interactive media technology in a bid to provide guests with an immersive wine and spirits drinking experience, the company said.

"We are glad to take part in the CIIE and hope to provide Chinese consumers with prime spirits and wine, showing our comprehensive strength and leadership in the imported wine and spirits market in China," said Jean-Etienne Gourgues, managing director of Pernod Ricard China.

In April, Pernod Ricard announced that it had become the exclusive distributor of two leading Bordeaux wine brands L��gende R and SAGA R in China for French winemaker Domaines Barons de Rothschild.

In August, the company started the construction of a new 13-hectare malt whisky distillery in Emeishan city of Southwest China's Sichuan province with an investment of 1 billion yuan ($143.26 million) over the next decade.

The distillery, the first of its kind in China, will start production in 2021.

In recent years, with the rise of the middle class and the young-generation becoming the mainstream of consumption, there has been a rise in demand for wine and spirits, and imported wine and spirits have become more and more popular, according to Gourgues.

"Pernod Ricard has been in China for over 20 years, and I think one of the biggest challenges for doing business in China that the market is not one size fits all. There is so much diversity in terms of consumption depending on the provinces and cities," Gourgues said.

"We've been learning over the past 20 years about the new appetites of the middle class and young-generation in China. And we've been able to supply more diversified products to meet their needs," he added.

Official statistics show from January to June of 2019, the import of spirits was 47.89 million liters, a year-onyear increase of 31.49 percent, and the import value was $685 million, an increase of 12.28 percent year-on-year.

Facing the new market trend, Pernod Ricard China has ramped up efforts to adjust its products, improve market operations and optimize product portfolio.

"We try to be balanced on the retail part of product experience because we want our Chinese consumers enjoy those products," the executive said. As Chinese online businesses develop, the company has also begun operating online retail on e-commerce platforms such as JD and Tmall, Gourgues said.

After participating in the first CIIE in 2018, Pernod Ricard had grown rapidly in the Chinese market.

"We received requests from all over China to purchase all the existing stock (after the first CIIE)," Gourgues said. "We had a lot of wholesalers and retailers visiting us, and the CIIE has helped to broaden the scope of our distribution in China," he added.

Pernod Ricard sales revenue reached 9.18 billion euros ($10 billion) in the 2018 fiscal year ending June 30. Its sales in China were up 21 percent year-on-year, according to the company.

The company is one of the industry leaders that has the widest range of wines and spirits products, including cognac, whisky, vodka, anisette, rum, liqueur, champagne and wine. Its brands are sold in more than 160 markets around the world and it has distributed sellers in 73 markets.

As a firm supporter of global free trade, Pernod Ricard hopes to take root in the Chinese market and deepen long-term mutual cooperation between China and France in a bid to promote sustainable development, Gourgues added.

liangkaiyan@chinadaily.com.cn

(China Daily Global 11/11/2019 page6)