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RTD acquisitions boost Corby sales by 41%
Pernod Ricard’s Canadian affiliate, Corby Spirit and Wine, saw sales soar by 41% in the year ending 30 June 2024, driven by its purchases of two ready-to-drink (RTD) producers.
Toronto-based Corby is the second second-largest marketer and distributor for spirits and wines in Canada, and is majority owned by Pernod Ricard, distributing its products in the region.
Corby’s revenue for the fourth quarter (Q4) – three months ending 30 June 2024 – increased by 50% to CA$66.5 million (US$48.9m).
For the 12 months ending 30 June 2024, Corby’s sales reached CA$229.7m (US$169m) in revenue, a rise of 41% compared to the same period last year.
Its adjusted net earnings in Q4 were at CA$5.4m (US$3.9m, 10% growth) and at CA$28.5m (US$20.9m, 13% growth) for fiscal 2024.
In international markets, export case sales were up by 16% year-over-year, with export case goods sales of CA$17m (US$12.5m).
Commenting on the performance, Corby’s president and chief executive officer, Nicolas Krantz, said the company’s total spirits and RTD portfolio “outperformed the market in value growth”.
This was by 1.9 percentage points in fiscal 2024 and the company’s portfolio prioritisation strategy was also cited for its effectiveness.
Growth was boosted by the addition of revenue from its acquisitions of Ace Beverage Group (ABG) and Nude, which included revenues of CA$57.9m (US$42.6) and CA$2.9m (US$2.1m), respectively.
Corby bought a 90% majority stake in ABG in June last year, which is a leading RTD producer and owns Cottage Springs, a major RTD brand in Ontario.
In April this year, ABG then acquired Nude for CA$11m (US$8m). Nude is a leading RTD brand in Western Canada and develops drinks with no sugar or sweeteners.
On their impact, Krant said: “We have also started to see our efforts to position Corby for long-term success in the dynamic RTD segment pay off, with our recent ABG and Nude acquisitions further bolstering our full-year performance.
“As we continue to build upon the great integration work completed with the ABG and Nude teams to date, strengthening our foothold across Western Canada, we anticipate that these acquisitions will continue to bear fruit for Corby.”
Corby’s Canadian brands include J.P Wiser’s, Lot 40, Pike Creek and McGuinness liqueurs. Through its Pernod Ricard affiliation, it also distributes international brands in Canada such as Absolut, Jameson and Chivas Regal.
Looking ahead
For the future, Krantz said the goal is to “maintain the objective to continue outpacing the broader spirits and RTD market in fiscal 2025”.
To do this, the company has a 2.0 strategy, which Krantz said is “underpinned by three key pillars”.
The first is to gain marketing share and leverage innovation, done through the “optimisation and implementation of strategic priorities” across its spirits portfolio. The second is “unlocking the full potential of its RTD portfolio”, led by ABG and Nude.
Lastly, the third, Krantz said, is “leveraging the broad-based digital transformation we undertook in recent years and Corby’s experienced team to proactively address key business challenges and opportunities head on”.
In terms of Canada market trends, Corby noted that the spirits performance was “broadly flat” in fiscal 2024. There was moderate growth in the on-trade, but conversely, moderate declines in retail. RTD were the fast-growing category overall and value out-paced volume across all categories.
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