Pernod Ricard sees 11% sales hike in Q1

Jameson owner Pernod Ricard saw organic sales rise by 11% for its first quarter of fiscal 2023, boosted by double-digit growth for all spirits categories.

During the three months to 30 September 2022, the company’s sales reached €3.308 billion (US$3.235bn).

Reported sales saw a 22% increase, as the US experienced ‘strong distributor depletions’ with shipments impacted by phasing, travel retail’s continued rebound and strong dynamism seen in Europe, enhanced by an ‘excellent’ tourist season supporting the on-trade growth.

The Q1 sales followed Pernod Ricard’s fiscal 2022 financial results in September, which rose by 17%.

Alexandre Ricard, chairman and chief executive officer, stated: “I am hugely encouraged by our start to the year. Our performance continues to be broad-based with growth across many markets and diversified across our portfolio with all our spirit segments in double-digit growth.

“Within a context which remains challenging and volatile, as for every business, we continue to actively invest to support our unique competitive advantages and fuel our future growth.”

The firm’s ‘strategic international brands’ enjoyed a 12% boost, driven mainly by Scotch brands, Jameson Irish whiskey, Absolut vodka, Beefeater gin and Martell Cognac.

‘Strategic local brands’ witnessed an increase of 13%, bolstered by double-digit growth of Seagram’s whiskies.

Meanwhile, ‘specialty brands’ such as Lillet apéritif, Malfy gin, Redbreast Irish whiskey and Jefferson’s Bourbon saw a rise of 16%.

Regions

India saw the most significant boost in sales, with growth of 21%, supported a ‘very dynamic performance’ of Indian whiskies Royal Stag and Blender’s Pride, ‘excellent growth’ of its Scotch portfolio, and Jameson and Absolut.

China witnessed a 9% increase, backed by Pernod’s Scotch portfolio and Absolut, while the Americas collectively experienced a 6% boost.

The US, excluding travel retail, saw a jump of 2%, with a ‘very rapid’ development of the firm’s RTD portfolio.

Europe rose by 4%, with double-digit gains recorded when excluding Russia and Ukraine.

Travel retail stood out as a success, having seen a hike of 24%, thanks to continued sales recovery outside of China. The sector is ‘on track’ to deliver profit back to pre-Covid levels, the firm said.

Reinforcing US footprint

Pernod is aiming to ‘reinforce’ its US footprint with moves such as acquiring a majority stake in Código 1530 Tequila, and upping its stake in Sovereign Brands, producer of Bumbu rum.

Plus, Pernod recently acquired a minority stake in Nocheluna, a new sotol brand founded by Mexican spirits firm Casa Lumbre and musician Lenny Kravitz.

Ricard added: “We have been very active in portfolio management in the past quarter with Sovereign Brands, Código 1530 and Nocheluna and are excited to work with our new partners to fully develop the global potential of such highly attractive brands.”

Ricard also expects “dynamic growth to continue” for fiscal 2023.

The CEO of Pernod’s global travel retail business recently revealed that the cruise channel is a “phenomenal opportunity” to recruit younger consumers.