Solid Growth In U.S. Drives Pernod To 4% Sales Gain In First HalfFebruary 9, 2017
Pernod Ricard achieved 4% organic sales growth (+2% reported) to €5.06 billion ($5.41b) in the first half of its fiscal year, as the U.S. market drove gains while conditions improved in China, Russia and travel retail.
“Our half-year results are strong, delivering a continued performance improvement,” said chairman and CEO Alex Ricard. “Our strategy remains consistent and is driving results.”
Pernod’s U.S. sales rose by 5% during the six-month period (ending December 31, 2016), as Jameson continued to generate double-digit gains and the premiumization trend was strong across the portfolio.
Absolut continued to struggle, enduring sales declines in both Nielsen channels and control states. However, with the Absolut Lime extension unveiled in recent weeks and upscale Absolut Elyx making progress, the company says its stabilization plan for the brand is on target.
Globally, nearly all of Pernod’s strategic brands enjoyed organic sales growth. Jameson led the way, with a 20% jump. Growth was also particularly encouraging for Ballantine’s (+6%), Havana Club (+5%), Malibu (+7%), Beefeater (+5%), Martell (+7%) and Perrier-Jouët (+9%). Absolut eked out a 1% gain, while The Glenlivet was flat. Chivas Regal was the only one of the company’s 13 strategic brands to lose ground, with a 1% decline. —Peter ZwiebachSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.