Pernod Ricard’s YTD Sales Turn Positive After Third-Quarter Surge
April 22, 2021Pernod Ricard has posted third quarter sales up 19% on an organic basis, leading its year-to-date revenues to return to positive territory. For the nine months ending in March, the drinks giant’s sales grew 1.7% organically to €6.94 billion ($8.37b), led by 6% growth in the U.S. and a 34% surge in China.
Pernod says it continues to see “robust mid-single digit growth” in the U.S., driven by the booming off-premise sector and its Glenlivet, Malibu, and Kahlua brands, as well as its Tequila and American whiskey portfolios. Top brand Jameson saw a softer performance in the third quarter as it lapped the solid launch of its Cold Brew extension a year ago, but its higher-priced Black Barrel expression has continued to see strong growth. Pernod noted that the U.S. on-premise remained in decline in the three months through March, but that the situation has been improving as markets gradually reopen across the country.
Overall, Pernod’s Americas unit saw sales climb 4% organically to just under €2 billion ($2.4b) over the nine-month period, with Canada, Mexico, and Brazil also contributing to growth. Its Asia business increased 3% to €3 billion ($3.62b), as the Martell brand surged in China, partially offset by on-trade restrictions in Japan and the recent worsening of the pandemic in India.
While the global picture remains uncertain, Pernod Ricard chairman and CEO Alexandre Ricard hailed the company’s resilience and solid performance in its key markets, noting, “We expect our sales to accelerate in Q4 and accordingly are providing guidance of an organic growth in profit from recurring operations for full-year FY21 of c. +10%.”—Daniel Marsteller
| Pernod Ricard USA—Key Brands (thousands of 9-liter case depletions) |
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| Brand | Origin/Type | 2019 | 2020 | Percent Change5 |
|
|---|---|---|---|---|---|
| Spirits1 | |||||
| Jameson | Irish Whiskey | 3,723 | 3,580 | -3.9% | |
| Absolut2 | Imported Vodka | 3,415 | 3,161 | -7.4% | |
| Malibu3 | Imported Rum | 2,246 | 2,734 | 21.7% | |
| Kahlua3 | Imported Liqueur | 799 | 924 | 15.7% | |
| The Glenlivet | Single Malt Scotch | 471 | 470 | -0.4% | |
| Beefeater | Imported Gin | 440 | 433 | -1.6% | |
| Altos | Tequila | 323 | 364 | 12.5% | |
| Wine4 | |||||
| Mumm Napa | California | 348 | 402 | 15.6% | |
| Jacob’s Creek | Australia | 462 | 397 | -14.0% | |
| Campo Viejo | Spain | 317 | 374 | 18.2% | |
| Total Pernod Ricard | 17,172 | 17,432 | 1.5% | ||
| 1 Includes flavors. 2 Excludes Cans; includes Juice and Elyx. 3 Excludes pre-mixed cocktails. 4 Includes still and sparkling. Source: IMPACT DATABANK © 2021 |
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