Marie Brizard Q3 impacted by core brands

French drinks group Marie Brizard Wine & Spirits saw its net sales increase by 7.5% to €111.4m (US$129m) in the third quarter of 2017, despite a “disappointing” performance from its core brands.

Marie Brizard’s net sales up by 7.5% despite a “disappointing” p

In terms of regions Western Europe, Middle East and Africa (WEMEA), net sales decreased by 7.5% to €31.1m compared to the first nine months of 2016.

In Central and Eastern Europe, net sales increased by 2.6% to €21.5m in the same period.

Net sales in the Americas decreased 19% to €4.3m, due to the impact of ongoing destocking, and “exacerbated” by the hurricanes in September.

The company said that on-going investment in the Asia Pacific region drove third quarter 2017 net sales up by 10.3% to €0.9m. MBWS will continue to “ramp up” its business in the region, primarily in China.

“MBWS’ sales increase of +7.5% in Q3 2017 comprises two realities,” said Jean-Noël Reynaud, CEO of MBWS.

“The company’s tactically important Other Businesses grew dynamically, by more than 25%. However, the -4.9% sales decrease generated by MBWS’ Branded Business in Q3 2017 is disappointing and below our expectations.”

“Net sales during the period were impacted by three specific headwinds: 1) weak sales delivered by Fruits and Wine in France, on-trend with the market; 2) a sales decrease of clear Krupnik in Poland’s traditional trade due to pricing pressure; and 3) lower than expected shipments of Sobieski in the United States. We have identified the issues that are curtailing our performance in each market, and are executing an action plans for each business that should lead to better results going forward.”

Looking ahead, MBWS said: “The action plans being carried out in each market should enable MBWS’ Branded Business to return to dynamic growth. MBWS confirms its Mainstream business model for the long term, and reiterates its growth strategy objectives to 2020.”