Focus - Pernod Ricard's Q1 Performance by Region, Brand
Pernod released its Q1 results today
Earlier today (24 October), Pernod Ricard released its sales and volumes figures for the 2013-14 first quarter. Here's a closer look at the company's performance in the three months to the end of September by region and brand.
Asia/Rest of the World.
The region - which last fiscal year accounted for 40% of total sales - saw sales drop by 14%, a fall that Pernod Ricard said was “exacerbated by unfavourable technical effects” such as currency exchange. On an organic basis, the region posted a 6% Q1 sales drop after an 11% increase over the same period last year. In full-year figures, released in August, the region increased sales by 7% organically.
- China shipments were down double-digits in value, while sales were “in sharp decline” because of anti-gifting measures. Martell depletions were in slight decline.
- India continued double-digit growth as it saw double-digit growth of the three Indian whisky brands, Blender's Pride, Seagram's Imperial Blue and Royal Stag.
- South Korea posted a double-digit drop of Imperial and Ballantine’s ahead of an Imperial packaging change, but there was continued strong growth of Absolut driven by the rapid expansion of on-trade.
- In Thailand there was a “very sharp decline” of 100 Pipers.
Sales in the region fell by 8%, with Pernod blaming high comparisons from the same period last quarter. On an organic basis, sales were flat. Pernod said the region was “still in good growth”, however the on-trade is now in decline.
- In the US, Jameson was the main growth driver, up 23% in Q1. Other brands also saw growth, including Chivas (8%), Perrier-Jouet (15%) and Glenlivet (10%).
- Brazil saw a “return to growth” in the quarter, with Absolut sales up 30%, Chivas up 13% and Ballantine's up 26%.
- Mexico posted a single-digit sales decline in a slowing market in which Scotch whisky was the only category in growth.
Sales in the region fell by 1%, but on an organic basis Western Europe sales were up 2% and Eastern Europe up 8%. In Western Europe sales of Havana Club in the quarter were up 25%, while Absolut saw a 16% increase. There was “continued decline” in Spain, Pernod said.
The group's top 14 spirits and brands, which account for 64% of its sales, posted a 5% sales fall and a 1% volumes drop. There was a “significant decline of Martell primarily due to China” where depletions have slowed and are now in slight decline in value, Pernod said. Martell sales fell 12% while volumes dropped by 15%.
Ballantine's sales dropped by 11% as volumes remained flat and Royal Salute dropped 21% in sales and volumes. Pernod attributed the declines to Asia, especially China. Jameson sales were up by 13% and volumes up by 10% thanks to strong performance in the US.
Pernod's “priority premium wine” portfolio, which includes Jacob's Creek and Campo Viejo, saw sales up 1% and volumes stay flat. Pernod's local brands portfolio was up 8% in sales and 11% in volumes. ArArAt (Russia) and Passport (Russia, Brazil and South Africa) achieved double-digit growth, taking advantage of their positioning as entry-level imported spirits, Pernod said.
Late last month, the 14th annual San Francisco World Spirits Competition took place. Late last week, the list of Best in Show awards were released. Here is part one of the full list of winners....
The report provides a review of the latest news and key events in the global spirits market during January 2014. Summary Using this report, marketers will effectively gain an insight into the latest ...
Pernod Ricard claims to have captured the "art of drumming" in a new online film for its Ballantine's Scotch whisky brand....
The report provides a review of the latest news and key events in the global spirits market during December 2013. Summary Using this report, marketers will effectively gain an insight into the latest...
- It's not all bad for Diageo - Analysis
- Focus - Diageo's FY Performance by Region
- Focus - Diageo's FY Performance by Brand
- Diageo upbeat on Scotch prospects
- Heineken CEO spies trouble ahead for UK
- Challenges remain as Diageo posts flat FY sales
- Edrington appoints new board director
- Diageo puts Bacardi in frame with white rum ads
- Heineken ups sales, profits despite volume squeeze
- Mast-Jagermeister closes Sidney Frank buy
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research