MBWS H1 sales rise 14.3%

French group Marie Brizard Wine & Spirits (MBWS) saw revenue grow by 14.3% in the first half of 2023, led by double-digit gains in international markets.

The group’s sales reached €98.8 million (US$108.3m) in the first six months of this year (H1), compared to €86.4m US$88.2m) in the same period last year.

Second-quarter (Q2) sales rose by 14.2% to €52.3m (US$57.4m).

MBWS attributed the first-half sales growth to a 12.6% increase in its home market of France during Q2 (up 22.4% in H1), but the on-trade business ‘slowed down’ compared to the previous quarter.

The performance in France was due to a lower out-of-stock rate than in the first quarter of 2023, alongside price increases. MBWS noted that this was despite a ‘slowing’ spirits market in France.

In France, MBWS saw an increase in sales for William Peel blended Scotch, San José Tequila, and Berger pastis in major retailers, mainly due to a tariff increase but the group said this did not cover the ‘sharp rise’ in input costs since 2022.

MBWS also said the availability of raw materials, such as grass, ‘remains unstable’ but is improving during the second quarter.

International sales climbed by 15.5% in the second quarter (up 5% in H1), with gains in Europe that balanced ‘difficulties’ faced in Britain where revenue continues to drop.

The group recognised a ‘sharp’ rise in revenue in Lithuania (up 25%), Bulgaria (up 22.3%) and Spain (up 21.7%).

Scandinavia sales fell by 28.2% in the second quarter, following a ‘record high’ seen in the same period last year.

In the US, the business has ‘temporarily recovered’ with sales up by 15.3% in Q2, led by the Marie Brizard liqueurs brand. But the group said the States continued to be a ‘persistently challenging distribution landscape’ for Sobieski vodka and Gautier Cognac in a ‘disrupted market’ for the latter category.

Asia Pacific second-quarter sales declined by 6.4%, mainly due to Australia.

‘Significant’ input costs

In its outlook, the group said: “The first quarter of 2023 showed that the rise in input costs remained significant and supply disruptions were still a reality, causing volumes to decline, particularly in France. The availability of materials and products somewhat improved recently, but remains highly unstable for some key products.

“It is worth recalling that at this stage, the price hikes intended to cushion increases in input costs since 2022 do not fully offset them, thereby weighing down on profitability.”

MBWS said it would continue to ‘closely monitor’ consumer demand in relation to price increases and how it affects categories such as vodka and Cognac.

The firm stressed that international sales growth remains a “priority” for the group’s development.