Pernod Says Emerging Markets, Premiumization Drive Growth Despite Tough TimesNovember 21, 2011
At Pernod Ricard’s recent annual general meeting, chief executive Pierre Pringuet said the company’s strong growth and improving price mix within several emerging markets, including Asia, Latin America and Eastern Europe, were insulating it from the effects of continuing global economic troubles. Emerging markets now represent around 40% of Pernod’s total sales, with sales in Asia alone growing 20% for the year through June.
Pringuet highlighted Pernod’s commitment to growing its wine unit—currently just 5% of the group’s overall business—particularly within the middle and premium price ranges. A centerpoint of this activity is China, where Pernod’s Australian Jacob’s Creek brand has made good progress in recent quarters (Pernod claims it’s the “clear leader” in China’s bottled-in-Australia category). Pernod has been producing wine in China’s Northwest and is currently developing a domestic wine brand for the Chinese market. For the first quarter of its fiscal year, ended in September, Pernod had organic sales growth of 11%, just above archrival Diageo’s pace of 9% during the same period.
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