Pernod Ricard North America CEO Ann Mukherjee Discusses Pandemic Strategy And Data-Driven ApproachMarch 10, 2021
Pernod Ricard North America chairwoman and CEO Ann Mukherjee offered an update to analysts yesterday on current business conditions and the outlook for the company moving forward. From a big-picture perspective, she cited the agility of the Pernod team in adapting to the pandemic marketplace to achieve 5% U.S. growth and 8% growth in Canada in the six months through December, noting that off-premise sales surged 20% to overcome a 40% decline in the on-premise, where many Pernod brands overindex.
“We also needed to pivot our portfolio to win across five key consumer trends we saw in the emerging marketplace,” Mukherjee said. The first was consumers’ return to trusted brands, which drove big gains for innovation plays like Jameson Cold Brew and Black Barrel (+30% in value) and Glenlivet (+26%). Second, at-home cocktailing contributed to a 90% gain for prepared cocktails in Nielsen value for the 52 weeks through January 23 and a 31% gain for cordials, benefiting brands like Kahlúa and Malibu.
Mukherjee said consumers are also increasingly interested in buying into the values of brands, which has been a focus of hers, illustrated by Absolut’s campaigns centered around important topics like consensual sex and election participation. Premiumization powered growth particularly among U.S. whiskey brands like Rabbit Hole, Jefferson’s, Smooth Ambler, and TX, as well as in agave spirits where Avión Tequila was up 62% and Del Maguey mezcal was up 93%. Finally, Pernod worked toward greater consumer convenience by expanding e-commerce operations.
Looking ahead, Mukherjee emphasized the role that predictive consumer analytics will play in continuing to drive growth, allowing the company to “convert insights into action.” She said the company’s extensive analysis of the U.S. market has already provided deep insight into areas where Pernod’s brands stand to gain share. “Advanced analytics will be imperative if our teams are to deliver results in a predictable manner,” Mukherjee said.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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