Editor's Viewpoint – Jameson: Fishing Where the Fish Are
Around 45% of Jameson's total sales hail from the US
At Pernod Ricard's Capital Markets Day, held at the Jameson distillery in Midleton, Ireland, today (4 June), it was all about Jameson. Previous events, which comprise Pernod senior executives presenting to analysts and media, have tended to focus on particular regions or particular categories for the company. Today, however, it has centred on one particular brand.
There can be no denying that Jameson, the fourth largest brand in Pernod's portfolio in terms of profits, has been a success story for the company since it acquired Irish Distillers - and the Jameson brand - in 1988. Sure enough, Anna Malmhake, the CEO of Irish Distillers, was most keen to present some impressive numbers: The Irish whiskey market leader accounts for 64% of the category, and is fast approaching 5m case-sales per year.
What was not clearly highlighted throughout the morning's presentations, however, was the brand's strong reliance on one market. The US accounts for a staggering 45% of Jameson net sales; way back in second place is Russia, with around 11%.
Were this to be one of the BRIC markets rather than the US, the alarm bells would have been sounding for quite a while in Midleton. One need only look at Remy Cointreau and, indeed, Pernod's Martell Cognac brand in China as examples of the dangers of over-reliance on one market.
Thankfully, for Pernod, the US is far more developed and, subsequently, more stable than the emerging markets of the world. And, all 50 states are posting double-digit growth for Jameson. It is safe to say, then, that Pernod is unlikely to look as intently to the BRIC markets to hit the brand's growth targets.
Why on earth would it?
Global market review of non-Scotch whiskies – forecasts to 2018
Non-Scotch whiskies in aggregate represent an enormous and growing category, with Irish whiskey in particular showing real momentum. With over 100 data tables and unique insight, this new joint IWSR/j...read more
The international spirits segment is undergoing a sea-change in Asia, from Cognac declines in China to Scotch weakness in South Korea. Those effects may be less severe in the Travel Retail channel but...
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...
Pernod Ricard SA (RI) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by Globa...
The strategy of Pernod Ricard is to become one of the leading companies in wine and spirits sales in Mexico. The company recently consolidated in Mexico with Casa Pedro Domecq México SA de CV, to beco...
- Remy, dead cats and the power of China's new year
- Focus - Remy Cointreau's YTD Performance by Brand
- Will Lucas Bols' IPO Bring Much Needed Stability?
- A Dangerous World and the Threat to Beverages
- Price drops would damage our DNA - Remy Cointreau
- Moët Hennessy unveils first Travel Retail outlet
- Pernod unveils Jameson bottle for St Patrick's Day
- Maxxium UK head to depart for Edrington role
- Remy eases declines as China hints at recovery
- SABMiller beer volumes fall as China holds back Q3
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- just-drinks on-trend: Craft beer - fortunes and future
- The Sugar Backlash and its Effects on Global Consumer Markets