US and China offset Pernod's home-region decline

29 August, 2013

Pernod Ricard grew sales by 4% during 2012/2013, thanks to the US and China offsetting a western European malaise.

The group’s sales totalled €8.6bn for the year ended June 2013, €5.1bn of which was from mature markets, €3.5bn from emerging markets.

The US’s re-emergence as a strong growth market was underlined with an increase of 8%. Pernod said growth was driven by its premium brands in the country, led by Jameson, which saw global value growth of 17%, and 10% by volume.

China’s 9% sales rise spearheaded Asia/ROW growth of 7%, thanks to brands such as Martell, (globally up 15%/5%) and Absolut (+5%/+2%).

France, which accounts for 8% of Pernod’s sales, remains a trouble spot, down-trading at 7% for the period. The French group underperformed the French spirits category which declined by only 2%.

Sales were affected in the market by a steep rise in excise duty introduced on 1 January 2012 and against the backdrop of a recession but brands such as Ricard (-9%/-11%) contributed to Pernod’s underperformance.

Europe excluding France saw static sales overall of 0%. Western Europe was the culprit, slipping 3% due to brands such as Ballantine’s (-6%/-4%), Mumm (-4%/-5%), Perrier-Jouët (7%/1%), Malibu (-1/-1) and Ricard all declining.

Russia, with revenue growth of +16%, however provided better news. The result was driven by Jameson, ArArAt, Chivas, Passport and Olmeca.

Pernod’s 18 Key Local Brands achieved growth of 6% year on year. ArArAt (+21%), Passport (+20%) and Olmeca (+14%) maintained double-digit growth, while Wyborowa enjoyed renewed growth of +5%.

100 Pipers remained in decline (-13%), as did Imperial (-3%), while France-focused brands Pastis 51 and Clan Campbell also struggled.

Pernod’s wine brands had mix results. Jacob’s Creek moved 1%/-3%, Brancott Estate grew 3%/3%, Campo Viejo was up 10%/10%, while Graffigna declined -5/-15%.


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