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Pernod Ricard Upbeat After Strong Start To Fiscal Year

October 20, 2022

Pernod Ricard has posted a solid set of numbers for its fiscal first quarter ended in September, with sales up 11% organically to €3.3 billion ($3.2b), boosted by healthy distributor depletions in the U.S. and strong pricing. Looking ahead, the company said it expects continuing “dynamic, broad-based net sales growth, albeit moderating on a normalizing comparison basis.”

In the U.S. market, Pernod said sales grew 2% for the three-month period, held back by shipment phasing, with underlying depletions advancing at mid single digits. Jameson, Malibu, The Glenlivet, and Jefferson’s have all had promising starts to the new fiscal year, with recent innovation Jameson Orange contributing to gains, along with “very rapid development of the RTD portfolio.” Pernod continues to raise prices in its U.S. portfolio, and across its global business gained a 7% boost from price hikes in the first quarter.

“I am hugely encouraged by our start to the year,” said chairman and CEO Alexandre Ricard. “Our performance continues to be broad-based with growth across many markets and diversified across our portfolio with all our spirit segments in double digit growth. Within a context which remains challenging and volatile, as for every business, we continue to actively invest to support our unique competitive advantages and fuel our future growth.”

Ricard also noted the company’s aggressive recent acquisition activity, adding, “We have been very active in portfolio management in the past quarter with Sovereign Brands, Código 1530, and Nocheluna and are excited to work with our new partners to fully develop the global potential of such highly attractive brands.”

In a flurry of activity over the past week, Pernod increased its stake in Sovereign Brands, including the Luc Belaire and Bumbu brands, among others; acquired a majority interest in upscale Tequila label Codigo 1530; and joined forces with Lenny Kravitz on a new sotol project, Nocheluna.—Daniel Marsteller

Pernod Ricard USA—Key Spirits Brands
Brand Origin/Type Total 2021
Depletions1
2022 YTD2
Percent Change
In Control States
Jameson Irish Whiskey 4,059 1.4%
Absolut3 Imported Vodka 3,194 -8.3%
Malibu3 Imported Rum 2,979 -9.1%
Kahlúa3 Imported Liqueur 938 -3.0%
The Glenlivet Scotch Whisky 527 -4.6%
Beefeater Gin 429 0.5%
Olmeca Altos Tequila 339 -13.6%
Absolut Cans RTD 297 104.2%
Total Key Brands 12,762 -4.1%
1 Thousands of 9-liter cases.
2 Year-to-date through August.
3 Excludes pre-packaged cocktails.

Source: NABCA and IMPACT DATABANK © 2022

 

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