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Pernod Ricard Up 12% In Fiscal First Half, Including U.S. Growth Of 5%

February 16, 2023

Pernod Ricard saw sales rise 12% on an organic basis to €7.1 billion ($7.6b) in its fiscal first half ended in December on a 3% volume increase, as the company touted “broad-based” growth across its global footprint. Profit from recurring operations also grew 12% organically to €2.4 billion ($2.6b).

In the U.S., Pernod said it saw “solid growth in a normalizing market.” U.S. sales were up 5% for the six-month period, as the company noted “underlying spirits value depletions of +3% with continued dynamism in premiumization trends.” The Jameson and Jefferson’s whiskey brands were both up by high single digits in terms of value depletions, while Malibu, Kahlua, and Beefeater grew by low to mid single digits. Favorable shipment phasing also helped boost the results for the half-year. Pernod added that it’s continuing to make rapid gains in the RTD market, and that following price hikes last fall, more price increases are on the way in the second half through June.

According to Impact Databank, Jameson’s U.S. volume depletions for calendar 2022 came in up 4.4% to 4.26 million cases, including 215,000 cases for flavor extension Jameson Orange. Additionally, Jameson’s premixed cocktails got off to a strong start, reaching 176,000 cases in a partial year on the market. Absolut and Malibu cocktails likewise continued to shine, topping 400,000 and 360,000 cases for the year respectively, although the brands’ core vodka and rum offerings declined. Jefferson’s, up 66% to approach the 300,000-case mark, also provided momentum.

Pernod noted that it has upweighted its advertising spend in the U.S. and Europe, placing €1 billion ($1.1b) in A&P investments in the first half, with its A&P to net sales ratio up by 224 basis points in the U.S. in the six-month period. That outlay manifested in campaigns like Absolut’s “Born to Mix” and Jameson’s “Widen the Circle.” Yesterday, Pernod also announced a new St. Patrick’s Day push for Jameson featuring actress Regina Hall.

“Our first half performance was very strong, marked by broad-based and diversified growth across all regions and categories,” said Pernod Ricard chairman and CEO Alexandre Ricard. “In addition, particularly strong pricing dynamic illustrates the attractiveness of our portfolio of premium brands and enabled us to sustain margins in an inflationary context. I expect this dynamic growth to continue through FY23 albeit in a normalizing environment.”—Daniel Marsteller

Pernod Ricard—Key Spirits Brands in the U.S.
(thousands of 9-liter case depletions)
Brand Origin/Type 2021 2022 Percent
Jameson2 Irish Whiskey 4,079 4,259 4.4%
Absolut2 Imported Vodka 3,229 3,158 -2.2%
Malibu2 Imported Rum 2,999 2,768 -7.7%
Kahlua Imported Liqueur 945 939 -0.6%
The Glenlivet Single Malt Scotch 528 508 -3.8%
Beefeater Imported Gin 431 419 -3.0%
Absolut Cans Pre-mixed Cocktail 318 407 27.9%
Malibu Rum Cans Pre-mixed Cocktail 51 366 623.6%
Olmeca Altos Tequila 343 316 -7.7%
Jefferson’s Bourbon 175 290 65.8%
Chivas Regal Blended Scotch 258 239 -7.3%
Martell Cognac 230 205 -10.8%
Total Leading Spirits3 13,585 13,874 2.1%
Based on unrounded data.
Includes flavors; excludes pre-mixed cocktails
3 Addition of columns may not agree due to rounding

Source: IMPACT DATABANK © 2023
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