According to the group’s latest performance report, sales in China for Q1 FY25 were down -26% due to weak consumer demand over the summer particularly for Martell cognac and Scotch.
“Further to the announcement by MOFCOM (The Ministry of Commerce, People's Republic of China) for the implementation of temporary duty deposits effective from Friday 11 October, actions are being taken to mitigate the impact on the group’s performance,” the press release read.
“Given the current weak environment, we expect to see a more significant full-year decline than last year.”
KEY MARKET RESULTS
US -10%
Canada: strong growth, in particular from newly acquired RTD brands
Brazil: strong result, lapping favourable comparison basis
Mexico: decline, notably with weaker tourism impacting on-trade
India +2%
- Solid sales growth, impacted by phasing, expected to fully reverse in Q2
- Strong underlying sell-out growth
- Strong performance of Royal Stag, Blenders Pride, Jameson, all growing double-digits
- Strong growth expected for the full-year
Europe -3% (ex-Russia +1%)
Gaining market share in France, Germany and Poland
Solid performance of Ballantine’s, Mumm and RTDs
Global Travel Retail +3%,
Strong growth in all regions except Asia, with good growth for Absolut, Jameson and Ballantine’s
Weak consumer sentiment affecting Chinese travelers’ spend, expected to persist for the full year
BY BRAND
Strategic International Brands -10%: mainly driven by Martell in China, Royal Salute in Korea and The Glenlivet in the US
Strategic Local Brands +1%: continued good momentum of Seagram’s whiskies portfolio and Kahlua
Specialty Brands -9%: largely driven by the US market performance, though with good results from Bumbu, Redbreast and Spot Range Irish whiskies
RTDs: strong double-digit growth led by Absolut and Ace Beverage Outlook
