Pernod on ‘mission’ to ‘stabilise’ Absolut in US

Pernod Ricard’s Gilles Bogaert has spoken of his company’s “mission” to “stabilise” its Absolut vodka brand in the US following a 5% sales decline in the market.

Millennials are key to reversing Absolut’s fortunes in the US, Pernod Ricard says

In its full year 2014/15 results, Pernod Ricard reported a €404 million “impairment charge” on the brand as it struggled in the country.

Absolut, which is the company’s largest brand by volume, lost market share with the category “changing rapidly” with the rise of “so-called craft vodkas”, said Bogaert, the company’s operations and finance MD.

Speaking at a recent media event, he acknowledged that Absolut has lost market share to new vodka brands, which are driving the “modest” overall category growth.

However, “we are confident we can do a good job with the brand in the US”, Bogaert continued. “Absolut is still a key priority”.

Crucial to this “mission” will be recruiting key millennial consumers to the brand. Marketing efforts should communicate the brand’s provenance, the Pernod Ricard team added.

An increased focus on super-premium Absolut Elyx is also part of the medium-term plan to see the brand return to growth in the country.

“Outside the US there is good growth,”Bogaert emphasised, with Denis O’Flynn, Pernod Ricard UK managing director, adding that the brand “is the fastest growing sku in the on-trade” in the UK.