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Jägermeister blames ‘aggressive’ US pricing for sales dive

Jägermeister has blamed a “challenging US market” for a 5.6% decline in sales, as competitor brands drive “aggressive” pricing.

Jägermeister sales in the US have been impacted by excessive pricing competition

The German liqueur brand, which expanded into an additional eight countries in 2014, recorded an overall sales decline to 87.1 million 700ml bottles, compared to 92.2m in 2013.

Despite the increased distribution, brand owner Mast-Jägermeister blamed the fall in sales on a combination of “extremely aggressive” pricing by competitors and changing consumer trends in the US, which resulted in lower sales and stock adjustments.

In Jägermeister’s domestic market, growth remained “relatively stable” despite a slight decline in the country’s overall spirits market [Nielsen].

However, outside the US and Germany, the brand reported a 4% increase in sales, with the majority hailing from Spain (30%) and France (40%), while the Czech Republic and Romania grew by 25%.

In the UK, where Jägermeister established its own distribution arm in 2013, sales grew to a record volume of six million bottles.

International markets account for 80% of the group’s sales.

Travel retail sales also soared by “double-digits”, particularly in the major international airports in Frankfurt, London, Paris, New York, Sydney and Singapore.

Paolo Dell’Antonio, spokesperson for the executive board at Mast-Jägermeister SE, said: “We are optimistic about the current year. Our brand’s continued international development is bearing fruit in hugely varied cultural environments giving us an extensive portfolio of markets with significant growth potential.”

The group intends to continue investing in expanding its production facilities, including a €20m injection into the production and bottling facilities in Wolfenbüttel over the next three years.

Mast-Jägermeister completed the expansion of its Kamenz production site last year.

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