just On Call - Absolut shows resilience in weaker Pernod Ricard markets
Pernod Ricard released its full-year results today
The French company today (29 August) posted a 3% rise in full-year profits, but saw slower growth in countries including China and Brazil. China saw sales growth slow to 9% while Brazil “experienced difficulties”, Pernod said.
However, Absolut appeared resilient to global economic headwinds, growing sales by 5% over the year. In Brazil, the vodka jumped by 24% despite the category only growing by 16%. In China, where Scotch sales were hit by government anti-gifting measures, it posted a FY double-digit sales increase.
“Absolut has taken off very well in the vodka category in China,” Pernod Ricard CEO Pierre Pringuet told analysts in a call after the results. “In fact, we've doubled our sales, so it is becoming an important brand.”
Even in developed markets such as France, where overall sales were down 7%, Absolut sales were up by 5%.
In the US, Absolut sales grew by 2%, down against the global average. Pringuet blamed “a very competitive market”. The vodka has seen price rises over the year in six US states, he added.
Meanwhile, Pringuet said the travel retail sector remained “highly profitable” and if it were a country would be Pernod's third or fourth biggest market.
“It is a very special country,” Pringuet said.
Pernod has continued to support the Absolut portfolio's global growth with a redesign of the brand's flavoured range, unveiled this month.
Antonia McCahon has been Pernod Ricard's head of digital for four-and-a-half months, taking on the newly-created post after working with a range of consumer goods companies. just-drinks caught up with...
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 ...
We all know by now that, if you're working for an international spirits company and the Chinese market is a big deal for you, then you haven't been sleeping too well for the past year or so....
- Comment - 'Craft' and the Danger of 'Romance Copy'
- Is A-B InBev/SABMiller 'Mega-Merger' Off?
- Diageo's Labels Give Industry Something to Digest
- Pernod takes positives from China Cognac bounce
- Sustainability: What Craft Teaches Multi-Nationals
- Craft is an 'abused' term - Pernod Ricard exec
- SPI Group 'disappointed' over Stolichnaya ruling
- Kraft Foods agrees Heinz merger
- Anheuser-Busch InBev lines up new chairman
- Chilli targets beer with Rekorderlig Dry Apple
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Champagne: Less Than Bubbly
- Beer Market Insights Africa 2014