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...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Over the last 10 years of rapid acquisitions, Pernod Ricard has built a strong portfolio of premium brands on a global scale. Most of its brands enjoy a leading position in international markets. The ...
Wine in Ireland industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2008-12, and forecast to 2017). The profile a...
- Analysis - Remy's Cognac "dead-cat bounce"
- Comment - How Hand-Made is Tito's Handmade Vodka?
- Heineken to stay "active player" in beer M&A - CFO
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Moët Hennessy unveils first Travel Retail outlet
- United Spirits sees Q1 net loss
- Beam Suntory, Edrington part ways in Travel Retail
- Diageo puts Beckham centre stage in Haig Club ad
- Smirnoff Ice gets India launch