Pernod Ricard’s U.S. Sales Rise 4% In First Fiscal QuarterOctober 19, 2017
Pernod Ricard posted a 4% organic sales increase in the U.S. in its fiscal first quarter ended in September as strong growth for Jameson continues to drive progress. Jameson was up by double-digits for the quarter, even as Pernod raised prices on the brand in September. After surging 16% to 2.8 million cases in the U.S. last year, Jameson crossed the 3-million-case mark in the U.S. in Pernod’s fiscal year ended in June, and Impact Databank projects that it will increase 13% to 3.2 million cases for calendar 2017.
Pernod said that Absolut showed a “modest decline” in its first quarter amid difficult conditions in the vodka category. Elsewhere within the U.S. portfolio, Pernod said that the performance of The Glenlivet—the largest single malt Scotch brand in the U.S.—and Avión Tequila improved over the past three months. The Glenlivet was down 1.4% in the U.S. last year to 414,000 cases, according to Impact Databank, while Avión slipped by 6% to 116,000 cases. However, Avión is projected to rebound by 8% this year to 125,000 cases.
Meanwhile, Pernod’s Martell Cognac and Altos Tequila are surging in the U.S., with sales up 35% and 16% respectively in the first quarter. Overall, Pernod says the U.S. spirits market is stabilizing at a growth rate of about 3%-4%, citing Nielsen figures.
Globally, Pernod’s first quarter sales rose by 6% on an organic basis (2% on a reported basis) to €2.3 billion ($2.7b), as its Asia-Rest of World (+7%), Europe (+3%) and Emerging Markets (+10%) regions were all on the rise. The company is projecting profit from recurring operations to increase by between 3% and 5% for its full fiscal year ending next June.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.