U.S. Market Delivers 8% Growth For Pernod In Full YearAugust 29, 2013
Pernod Ricard saw solid results from its strategic brands and several secondary labels in the U.S. market in the year through June, with net sales in the U.S. up 8% organically during the period, matching the pace of rival Diageo. Pernod credited a strong price/mix increase of 5% as driving value gains, with Absolut (+2%), Jameson (+26%), Malibu (+5%), Glenlivet (+22%), Chivas Regal (+5%) and Perrier-Jouët (+14%) all on the rise. Pernod also noted that brands outside its strategic stable—including Avión, Mumm Cuvée Napa, Aberlour, Plymouth and Wiser’s—contributed to growth.
Globally, Pernod posted an organic sales increase of 4% to €8.6 billion ($11.4b), as emerging markets—while slower than in recent years—continued to provide positive momentum. In China, Pernod’s Scotch brands struggled, but Martell, Absolut and Jacob’s Creek enjoyed double-digit increases, leading to overall net sales growth of 9%. In India, Pernod’s local whisky business (+16%) and its strategic brands (+17%) continued to expand. Among other key markets for the French drinks giant, Russia (+16%), Mexico (+5%) and Travel Retail (+7%) were in positive territory, while Brazil and Western Europe declined over the past year.
Pernod CEO Pierre Pringuet acknowledged “a less buoyant environment than that of last year” across the global business, but added that the group’s “balanced exposure to emerging and mature markets” is allowing it to weather tougher conditions in some areas while seizing opportunities in healthier markets like the U.S.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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