Pernod Ricard to plough every rupee of Xclamat!on profit into marketing for first 18 months

New Delhi: Pernod Ricard India, on Tuesday, launched Seagram’s Xclamat!on, a five-spirit, homegrown portfolio spanning whisky, vodka, gin, rum and brandy, and the company is backing it with one of its most aggressive marketing pushes to date.

In an exclusive conversation with BestMediaInfo.com, Jean Touboul, Chief Executive Officer, Pernod Ricard India, revealed what he described as the company’s most aggressive stance yet on brand-building, stating that every rupee of profit Xclamat!on generates in its first 12–18 months will be reinvested entirely into advertising and marketing.

Touboul explained that the brand’s early strategy prioritises long-term growth over short-term profitability. “We want to give it every chance to succeed,” he said, noting that he is comfortable not turning a profit in the first year. Instead, the plan is to reinvest all earnings from the initial 12 to 18 months back into advertising and brand-building. 

According to him, this reinvestment-first approach is essential in the launch phase because it fuels innovation, strengthens visibility, and ultimately sets the foundation for sustainable success. He added that this calculated investment approach significantly improves the product’s odds of success and could position it as a major growth engine. 

The new label, which spans whisky, vodka, gin, rum and brandy at a uniform price point, is expected to account for 10% of Pernod Ricard India’s growth over the next decade, a projection that underscores the scale of the investment and the strategic urgency behind the launch.

A five-spirit brand built for the “perfect sweet spot”

Pernod Ricard India has described Xclamat!on as its most aspirational homegrown portfolio yet and Touboul’s own assessment emphasises why the company is treating this launch as a centrepiece of its India strategy.

Touboul said the opportunity lies in finding the right balance between scale and profitability. “Given our size, this category offers the ideal mix, enough margin to reinvest behind the brand and a large enough consumer base to truly scale,” he explained.

He believes the premium admix segment, where blended, flavoured and versatile spirits perform strongly, is set to outpace overall industry growth in the coming decade. That dynamic, he said, makes Xclamat!on a high-stakes but high-potential bet for the company.

“At the very high end, each bottle delivers strong profit, but volumes are limited. At the lower end, volumes are high, but margins disappear,” he said. “This sits right in the middle. This is the sweet spot where we can build a scalable, profitable brand.”

The Imperial Blue exit and the Xclamat!on entry: aligned but not consequential

Pernod Ricard India recently exited its mass-market whisky brand Imperial Blue in a Rs 3,442-crore slump sale to Tilaknagar Industries, a deal that covered manufacturing assets, trademarks, employees, and long-term supply arrangements. 

Although the Imperial Blue divestment and the launch of Xclamat!on appear closely sequenced, Touboul emphasised that the two moves were driven by independent timelines, with the alignment turning out to be strategically advantageous.

“You phase out one so you can push the other forward,” he said. “We wanted both to happen, and it’s great that they coincided, but you can’t fully control the timing. A transaction of over Rs 4,000 crore doesn’t happen overnight. And developing a new brand, the concept, and the approvals also takes time. Innovation is in your hands, but selling a brand requires a buyer who’s ready at the price you want.”

He added that the launch of Xclamat!on was not contingent on the sale of Imperial Blue. “Even if we hadn’t found a buyer, we would have launched this anyway because it makes strategic sense,” he said. “But the fact that both happened together is fantastic; it frees up resources to give Xclamat!on the best possible chance of success.”

Marketing philosophy: digital-first now, TV later

With Xclamat!on positioned squarely for consumers aged 26–30, Pernod Ricard India plans to begin with a digital-first marketing approach and expand based on early market response. “It’s a brand for a young audience, so digital is the most natural fit,” Touboul said. 

As the brand scales, PRI will look at widening its footprint across Tier 2 and Tier 3 markets, where mass media could play a stronger role. “Once we see how quickly it grows, we can take it deeper into smaller cities, and in those markets, television, especially regional TV, can be very effective,” he added.

Xclamat!on will be launched in 14 markets in a phased manner in the first year, beginning with Haryana, Uttar Pradesh, Goa, Rajasthan and Daman.

Beyond premiumisation: A decade-long growth engine

For Pernod Ricard India, Xclamat!on is not a short-term extension but a long-horizon bet aimed at creating a fresh growth engine in a rapidly evolving spirits market. “Consumers today expect experiences. They want brands that reflect a lifestyle, modern, experiential, and high quality. That’s the space we want to occupy,” Touboul said.

While established labels like Blenders Pride will continue catering to traditional consumers, Xclamat!on is designed to recruit the next generation, today’s 26-year-olds who will shape the premium spirits category over the next decade.