Chivas Brothers sales grow 25% in FY22
The Scotch whisky arm of Pernod Ricard, Chivas Brothers, saw net sales soar by 25% during the company’s 2022 fiscal year.
Chivas Brothers’ net sales were driven by both mature markets (where sales rose by 16%) and emerging markets (where sales rose by 34%).
Chivas Brothers chairman and CEO Jean-Etienne Gourgues commented: “These positive results demonstrate that our strategy for growth, with investment across innovation and sustainability, is on track.
“We are well set up to continue this trajectory in FY23 to shape the future of Scotch by opening up the category to new audiences across the globe.”
The Chivas Regal Scotch whisky brand saw global growth of 29% during the 2022 financial year, and a boost of 42% in emerging markets.
The brand also revealed it would continue to invest in portfolio innovation and the sustainable future of Scotch, with a particular focus on technological advancements in production.
In travel retail, Chivas and The Glenlivet both recorded triple-digit growth. Chivas credited this growth to its ‘era of transformation’ with a redesign of its 12-year-old and recent campaign to open up the Scotch category to a contemporary audience.
Ballantine’s experienced a 27% net sales rise during the year, while Royal Salute enjoyed 38% sales growth. Royal Salute noted ‘stellar growth’ in Brazil and India.
The Glenlivet saw success in mature markets such as the US (up by 7%), Canada (11% increase) and the UK (also up by 11%). Asia also proved lucrative for the brand, with sales up by 83% in China, 17% in Taiwan and 34% in India.
As part of this, the company said it would roll out Mechanical Vapour Recompression (MVR) fan technology at Strathclyde in Glasgow, which is its largest distillery.
MVR fan technology recovers waste heat to save carbon dioxide emissions.
The installation at Strathclyde will save up to 9,800 tonnes of carbon dioxide.
Chivas is hoping to install MVR technology at Allt A’Bhainne distillery, in the Speyside region of Scotland, in 2023.
Additionally, two MVRs are being installed at Glentauchers, also in Speyside, making it the company’s lowest-energy distillery. MVR installations will be completed there by October 2022.
£88 million investment
This also builds on Chivas Brothers’ further MVR installations as part of an £88m (US$101m) expansion at two of the company’s ‘strategic’ malt distilleries: Aberlour and Miltonduff.
The investment will upgrade sustainable distillation technologies along and grow Chivas Brothers’ production capacity by 14 million litres of alcohol per annum.
The company also shared progress on its commitment to achieve 100% recyclable, reusable, compostable packaging by 2025, in line with Pernod Ricard’s Sustainability & Responsibility roadmap.
The brand reported that 690 tonnes of secondary packaging was removed last year, and said it would work closely with suppliers to remove a further 2,000 tonnes of cardboard in the next fiscal year, beginning with the phasing out of Chivas 12 cartons from autumn this year.
Pernod Ricard’s full-year results for fiscal 2022 revealed a significant increase in global demand for Scotch.