Pernod Aims For Better Finish To Fiscal Year After Tough Third Quarter
April 25, 2024Pernod Ricard saw organic net sales dip 2% to €8.9 billion ($9.5b) for the nine months through March, as challenges in the U.S. and China continued in the most recent quarter. In the third quarter through March, Pernod reported stable organic sales of €2.3 billion ($2.5b). The factors weighing down results included an unfavorable foreign exchange impact and broader challenges in the U.S. including continued inventory adjustments for distributors and retailers across the country.
For the fiscal third quarter and the nine months year-to-date, Pernod reported U.S. sales down 11% and 8%, respectively. The company notes that it’s laying the groundwork for a rebound, with accelerating brand activation, particularly for Jameson and the company’s newest brands. Despite the overall drop, Pernod says that Jameson’s flagship Irish whiskey has gained share in its market segment due to the company’s Saint Patrick’s Day programming. While the challenges facing Jameson have impacted the company’s overall results, Pernod points to Kahlúa, Código Tequila, and Jefferson’s Bourbon as outperforming in the U.S.
On a conference call last month, Pernod Ricard North America chairman and CEO Conor McQuaid noted that Jameson still has room for growth in various U.S. markets. “We look at the markets like Florida and Texas as two markets in which we still believe there’s huge headroom for growth as we continue to recruit into the brand,” he said.
More broadly, McQuaid said the company is now better positioned after addressing shortfalls in its Tequila and RTD ranges. “We have had those headwinds within the portfolio where we’ve been underexposed to both Tequila and RTD that have significantly grown ahead of category over the last number of years. So we’ve sorted those in the sense that we’ve now got the correct propositions within our portfolio,” he said.
Despite the third quarter declines, Pernod says it expects top line growth of 4% to 7% for its medium-term outlook globally with net sales improving in the fourth quarter.—Shane English
| Pernod Ricard—Key Spirits Brands in the U.S. (thousands of 9-liter cases) |
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| Brand | Origin/Type | 2022 | 2023 | Percent Change1 |
|
|---|---|---|---|---|---|
| Jameson2 | Irish Whiskey | 4,360 | 3,941 | -9.6% | |
| Absolut2 | Imported Vodka | 3,155 | 2,796 | -11.4% | |
| Malibu2 | Imported Rum | 2,804 | 2,565 | -8.5% | |
| Kahlúa | Imported Liqueur | 943 | 929 | -1.4% | |
| Skrewball | Flavored Whiskey | 570 | 520 | -8.6% | |
| Malibu RTDs | Pre-Mixed Cocktail | 420 | 515 | 22.8% | |
| The Glenlivet | Single Malt Scotch | 513 | 445 | -13.1% | |
| Absolut RTDs | Pre-Mixed Cocktail | 405 | 422 | 4.3% | |
| Beefeater | Gin | 421 | 385 | -8.5% | |
| Olmeca Altos | Tequila | 319 | 305 | -4.2% | |
| Chivas Regal | Blended Scotch | 241 | 205 | -15.0% | |
| Jefferson’s | American Whiskey | 177 | 161 | -9.4% | |
| Total Leading Spirits3 | 14,326 | 13,190 | -7.9% | ||
| 1 Based on unrounded data. 2 Includes flavors; excludes RTDs. 3 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2024 |
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Tagged : Absolut, Codigo, Jameson, Jefferson's, Kahlua, Pernod Ricard
