Pernod Turns To Company Veteran McQuaid To Accelerate U.S. Growth

In case you missed yesterday’s news alert, Pernod Ricard North America will begin 2024 with new leadership, as the drinks giant named 25-year company veteran Conor McQuaid as CEO, effective January 1. McQuaid will succeed Ann Mukherjee, who has helmed Pernod’s North America unit since late 2019.

McQuaid will take over as CEO of a Pernod business in the U.S. that ranked seventh among all spirits marketers last year at 16.4 million cases, according to Impact Databank, up from 15.3 million cases in 2019. Mukherjee’s tenure was inevitably characterized by the pandemic and its aftermath, including the retail boom and on-premise closure of the early months and the gradual normalization that has followed. In the 12 months through June, Pernod’s U.S. sales were stable, with underlying depletion value increasing 2%, boosted by a high-single-digit effect of price hikes on sales. In the company’s fiscal first quarter ended in September, U.S. sales declined by 8% on tough comps, but Pernod said it’s expecting a return to growth in the coming months.

Pernod’s leading brand in the U.S., Jameson, grew by 14% to 4.24 million cases from 2019 to 2022, including flavors. Jameson’s new RTD offshoot added another 176,000 cases to the brand’s total last year. So far in 2023, the Irish whiskey leader’s core label is down about 2% in control states, while the RTDs continue to soar, climbing by nearly 40% in the year-to-date through September. McQuaid formerly led Pernod’s Irish Distillers unit, and was credited by Pernod chairman and CEO Alex Ricard for “the instrumental role he played in the success of Jameson, particularly in the U.S.,” giving him a leg up as he ascends to lead the North America business.

Pernod’s Malibu rum has also benefited greatly from the RTD boom, with its cocktails up 21% in control states this year after topping 400,000 cases across the U.S. in 2022. As with Jameson, that growth has offset a small decrease in the core brand. Absolut’s RTDs likewise surged above 400,000 cases last year, but they’ve slipped by 12% in control states in the year-to-date, as the core vodka has also continued to decline.

Stabilizing Absolut in the U.S. has been a key priority for Pernod for years, but amid the rise of first Tito’s and then RTDs like Gallo’s High Noon, it has proved a tall task. On the other hand, Pernod continued to expand its presence in whiskey and Tequila under Mukherjee’s leadership—making acquisitions including Código 1530 Tequila and Skrewball Peanut Butter Whiskey—while also adding a minority stake in Sovereign Brands, including labels like Luc Belaire sparkling wine, Bumbu rum, and McQueen and the Violet Fog gin.

Growth in whiskey has been an imperative, with Pernod creating an American Whiskey Collective last year to house brands like Jefferson’s, Rabbit Hole, Smooth Ambler, and TX in a bid to accelerate growth. Jefferson’s has expanded rapidly of late, more than doubling in size to 180,000 cases since 2019, with Rabbit Hole up 6.5% to 40,000 cases last year, according to Impact Databank.

While many of the challenges brought on by the pandemic have faded, McQuaid will confront a business climate in which consumers are weary of higher prices after a significant period of inflation and making more calculated choices in their drinks repertoire. But his long background in the business and expertise in steering Jameson, in particular, give him a head start as he looks to accelerate sales in Pernod’s largest global market.—Daniel Marsteller

Tagged : Absolut, Jameson, Jefferson's, Malibu, Pernod Ricard, Rabbit Hole, Smooth Ambler, TX

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