Strong global sales of Martell and Jameson whisky helped Pernod Ricard return a good performance in its half yearly sales.
Although the company admitted the environment was less buoyant than last year, it said its strategy of premiumisation and innovation enabled it to achieve positive sales and that it remained on track for the full financial yea. Overall net sales grew 5% to €4,907m with a 7% rise in profits (excluding negative technical effects) to €1,459m.
Sales of the top 14 brands outgrew the rest of the group following increased investment in advertising and promotion expenditure. In addition to Martell and Jameson’s strong performance (up 23% and 13% overall), there was good growth in white spirits, led by sales of Absolute in the US and emerging markets, and Havana Club in Europe. Scotch whiskies were “stable” despite sales slowing down in Asia, but sales Ricard fell steeply by both volume and value, down 34%.
Priority premium wine showed slower growth, with sales up 2%, led by value growth in Campo Viejo and Jacob’s Creek, while sales of Graffina and Brancott Estate declined.
Performance in Europe was mixed, with Easter and Western Europe showing increasing “bipolarisation”, primarily due to poor sales in Southern Europe and an “accentuated decline” in Spain (down 9%). However, it said it had gained market share and “seized leadership in value” in this market.
The company reported dynamic growth in Asia, up 11% overall, with sales of Martell particularly strong in China (up 18%). American markets also continued to do well, driven by whiskey brands Jameson and The Glenlivet, as well as premium wines, notably Jacob’s Creek, in Canada.
Premium brands now make up 76% of the group’s sales, the company said.
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