Pernod Ricard is amplifying its ultra-prestige and craft spirits portfolio in response to Asia’s increasing demand for premium, niche products. In markets like Singapore and China, consumer habits are evolving, with a notable shift towards high-end spirits as affluent drinkers seek quality over quantity. This trend highlights a significant opportunity for Pernod Ricard, which houses over 240 brands—including Chivas Regal, Royal Salute, and The Glenlivet—to meet the growing expectations of Asia’s discerning consumers.
Pernod Ricard has noted a sharp rise in Scotch whisky consumption in Asia, surpassing Europe, driven by a newfound consumer appreciation for premium whiskeys for gifting, collection, and unique experiences. In Singapore, the demand for top-tier spirits, from Martell XXO cognac to Código tequila, reflects the sophistication of local palates, particularly among younger consumers aged 25-45. Alex Liu, Country Manager for Pernod Ricard Singapore, highlights that this shift presents an “opportunity for brands to tap into a ‘quality over quantity’ mindset.”
Market Trends
Trend 1: The Surge in Demand for Ultra-Prestige and Niche Spirits
The demand for premium spirits in Asia, particularly during cultural and festive occasions, underscores a trend where quality is prized over quantity. Brands like Royal Salute, which recently launched its 24 Years Old Cognac Cask Finish exclusively in Asia, cater to this refined taste. This Asia-exclusive product, crafted with rich fruity and spicy notes, appeals to the region’s preference for intricate flavour profiles and embodies the cultural resonance of luxury. In China, where gifting premium spirits is a tradition, the company’s portfolio aligns with consumer values of sophistication and generosity, making China its second-largest market.
Pernod Ricard’s focus on craft and ultra-prestige spirits, like Monkey 47 gin and Código tequila, is a response to the region’s burgeoning cocktail culture. Consumers are seeking not only premium products but also immersive brand experiences, such as bartender showcases in premium venues. This dual demand for high quality and unique encounters represents a potent trend for exporters and producers looking to capture the Asian market, particularly in mature markets like Singapore and Hong Kong, where consumers are highly discerning.
Trend 2: Expanding Beyond Conventional Spirits Through Cultural Resonance
Pernod Ricard’s strategy goes beyond product quality, focusing on culturally resonant branding to enhance appeal. The Royal Salute’s “Enter the New Kingdom” campaign, featuring Asia-specific themes and packaging adorned with symbols of prosperity like pheasants, cranes, and oriental flowers, reinforces the emotional connection to regional culture. As more consumers in Asia appreciate heritage stories and brand provenance, brands with a deep-rooted narrative hold a competitive edge. The customisation of packaging, flavour, and themes to reflect local values and aesthetics has a profound impact on consumer loyalty and willingness to invest in premium spirits.
Strategic Action
1. Prioritise Ultra-Prestige Product Awareness and Availability in Key Asian MarketsTo capitalise on the ultra-premium trend, Pernod Ricard should focus on expanding the visibility and availability of its high-end spirits across Asia. Key steps include:
Targeted Brand Presence: Elevate brand presence in high-end venues and exclusive retail outlets across Singapore, China, and emerging Asian markets.
Festive Promotions and Exclusive Events: Align product launches with key regional celebrations, such as Chinese New Year, by offering limited editions and collaborations to enhance brand prestige.
Story-Driven Marketing: Develop campaigns that celebrate the heritage of each brand, highlighting craftsmanship and legacy in ways that resonate with affluent consumers.
This approach positions Pernod Ricard as a leader in Asia’s premium spirits market, leveraging culturally tailored strategies to deepen consumer engagement.
2. Expand the Craft Spirits Portfolio to Capture Niche Market Demand
With Asia’s cocktail culture on the rise, Pernod Ricard’s investment in craft spirits offers a strategic edge. To maximise this, Pernod Ricard should:
Broaden Product Range: Introduce artisanal products, such as niche gins, mezcals, and unique whiskeys, that cater to the growing interest in craft spirits.
Exclusive Bar Collaborations: Partner with premium cocktail bars and influencers to host tasting sessions and immersive experiences that showcase the unique qualities of craft spirits.
Emphasise Craftsmanship and Authenticity: Highlight the authenticity of craft brands like Monkey 47 gin to appeal to discerning consumers who value quality and origin.
By broadening its craft spirits portfolio, Pernod Ricard taps into the growing segment of consumers who value artisanal quality and authentic experiences, positioning the brand as a frontrunner in Asia’s evolving spirits landscape.
3. Leverage Cultural Resonance Through Localised Product DevelopmentFor long-term growth in Asia, Pernod Ricard should continue to design products that resonate culturally with Asian consumers. Key actions include:
Localised Product Innovation: Develop flavours and products tailored to Asian preferences, as seen with Royal Salute’s cognac cask finish, which captures the region’s love for spiced and fruity notes.
Symbolic Packaging Design: Introduce packaging elements with cultural significance, like auspicious red colours and traditional symbols, to enhance the consumer experience and emotional connection to the brand.
Collaborative Marketing with Cultural Icons: Partner with local influencers, artists, or fashion designers to co-create products or packaging that reflect modern Asian values and lifestyles.
With its refined strategy focused on ultra-premium spirits and culturally attuned marketing, Pernod Ricard stands poised to capture Asia’s fast-growing demand for high-quality, exclusive products. As Asia’s affluent consumers continue to value heritage, quality, and unique experiences, Pernod Ricard’s approach offers a blueprint for sustained growth and brand distinction in one of the world’s most dynamic spirits markets.
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