Mukherjee: Pernod Deploying “Multifaceted” Strategy To Win In Complex Market

Pernod Ricard North America chairman and CEO Ann Mukherjee updated the market this morning on the company’s strategy as it gets deeper into the second half of its fiscal year. Pernod recently posted global sales up 12% on an organic basis to €7.1 billion ($7.6b) for its fiscal first half ended in December on a 3% volume increase, with U.S. sales rising by 5%.

Noting that the beverage alcohol market “continues to normalize” toward its historical growth trend of 4%-5%, with spirits gaining market share for the 13th consecutive year in 2022, Mukherjee said Pernod’s focus is to “sustainably beat the market by activating more brands with a portfolio that meets consumers across all advantaged price points and across all occasions where our brands have a right to win…We’re playing the long game, focusing on the breadth of our portfolio.”

Speaking to “foundational” Pernod brands like Jameson, Mukherjee noted that the Irish whiskey leader twice took price increases last year and has continued to show strong depletion growth. She also touted the success of Jameson Orange, which earned an Impact “Hot Brand” award after soaring past 200,000 cases in its first year on the market.

On Absolut, said Mukherjee, “We remain confident in our ambition to stabilize Absolut’s performance in the U.S. market,” adding that the vodka label’s canned cocktails are driving growth. Absolut Cans also earned a “Hot Brand” award, increasing 28% to above 400,000 cases. “With these RTDs, we are continuing to see new consumers recruited into the brand,” she noted. Among other key labels, The Glenlivet single malt Scotch and Malibu rum have outperformed their categories, Mukherjee said.

Mukherjee also discussed recent acquisition plays like Codigo 1530 Tequila and—just this week—Skrewball Peanut Butter Whiskey, saying, “We have only begun to tap into the potential of our wider portfolio as we continue to keep a close eye on the demographic shifts of the U.S. consumer.”

At the above-$40 area of the market, Mukherjee sees opportunities for brands like Redbreast Irish whiskey and Del Maguey mezcal. “With the launch of Del Maguey Vida Puebla, we will finally have the ability to bring this brand to more consumers starting this spring,” she said.

Meanwhile, Pernod Ricard continues to invest in American whiskey, notably with its announcement last fall of a new distillery project for the Jefferson’s brand in Kentucky. The $250 million investment will give the brand an annual capacity of 7.5 million proof gallons. “Our first distillation will take place in 2024 with 2025 as the target completion date for the distillery,” Mukherjee said.—Daniel Marsteller

Tagged : Absolut, Código 1530, Del Maguey, Jameson, Pernod Ricard, Redbreast, Skrewball

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