Analysis - Pernod Ricard to catch China growth with broader portfolio
Pernod Ricard released its Q1 results yesterday
Pernod Ricard will extend its portfolio in China as sales in the country return to solid growth in two years, an analyst has predicted.
UBS analyst Melissa Earlam said the French group, which yesterday posted “sharp declines” in Q1 China sales, should post an 8% lift in FY 2015. In FY 2016, Pernod will post a 12% sales growth, Earlam estimated.
Pernod blamed its China sales drop on anti-extravagance measures put in place at the beginning of the year. The measures, which have hurt other international spirits companies, helped drive Pernod's overall 9% sales dip in the first quarter. China makes up about 16% of Pernod's operating profits.
Earlam said Pernod will create “a wider product portfolio to drive the growth”, with recovery first expected in Martell's VSOP and Cordon Bleu Cognac brands. The analyst also said recovery will lag in KTV and banqueting channels compared to on- and off-trade.
In a call with analysts yesterday, Pernod's CFO Gilles Bogaert said that sales in some channels in China have dropped by 50% to 60% without identifying which channel.
I'm calling it, people. Today is the day that I feel confident enough to conclude that the China 'crisis' is not a blip....
"The Future of the Wine Market in the United Arab Emirates to 2017: Market Size, Distribution and Brand Share, Key Events and Competitive Landscape" is the result of Canadean’s extensive market and co...
How long is a satisfactory term for a CEO? Of course, there's two answers to this question: One if the company is publicly-listed, the other if it's a privately-held firm. Then, of course, there is th...
Business Monitor International's France Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bo...
Colombia has shown an interesting development in the luxury industry, and the alcoholic drinks category has not been indifferent to the trend. Some examples of new premium lines that appeared in 2012 ...
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- What do A-B InBev results mean for SABMiller deal?
- Mike’s Hard Lemonade Could Be a Hard Sell
- Anheuser-Busch InBev's FY Performance by Region
- Diageo "smart bottle" targets consumers at home
- Suntory whiskey seeks to "eclipse" Diageo, Pernod
- Tesco reinstates Dan Jago following suspension
- Diageo adds Dubai to Johnnie Walker skyline series
- Tough US hits Mast-Jagermeister volumes in 2014
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report