Pernod Ricard is launching higher-abv RTDs under its Malibu brand in the UK and North America.
The company has rolled out the 10% abv Malibu Punch cocktails in the UK and said the drinks will go on sale in the US and Canada in its current financial year,
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In the UK, where Pernod already sells 5% abv Malibu canned RTDs, the Punch range comprises three variants: Watermelon Punch, Peach Tea Punch and Piña Colada Punch. They have an RRP of £3.50 ($4.60) per 237ml can.
The group said the UK RTD category grew 28% in value terms in the year to September, with “higher-abv SKUs … driving this acceleration”.
Liam Murphy, marketing director for Pernod’s UK arm, said: “Malibu is already a ready-to-drink super brand in the UK having helped to establish the category more than a decade ago. The onus is on us to innovate and deliver against evolving consumer trends.”
The RTD category is one of the brighter spots of the overall spirits market and distillers are stepping up their efforts to meet consumer demand.
“Spirits-based RTDs are the fastest-growing RTD segment, and this is somewhere we can play quite seriously in,” CEO Alexandre Ricard said in August when Pernod announced its annual results for the year to the end of June.
“Our intention is indeed to increase our investments behind RTDs, to increase our innovation behind RTDs and more specifically – I think this is the key – to increase the pace at which we come to market with our RTD propositions.”
In the US last week, Pernod launched a pair of Absolut canned RTDs with an abv of 9%. The Double Vodka Cranberry cocktails were developed with Ocean Spray.
Ricard said in August RTDs are a “priority” for the business. “They’re a great complement to our portfolio and we intend to invest behind them and accelerate the RTD performance for our business, as we have over the last few years, as you’ve seen the increasing weight in our portfolio.”
In the year to the end of June, Malibu volumes fell 7% to 3.9 million nine-litre cases. Organic net sales for the rum brand dropped 4%, while price/mix fell 3%.
At a group level, Pernod booked a 3.9% decline in annual organic sales and a 14.2% drop in reported net sales to €9.4bn ($10.94bn).
For the period ended 30 June, profit from recurring operations reached €2.4bn, down 5.2% organically and 17.9% on a reported basis.
Looking ahead, the group lowered its medium-term sales outlook across its 2027 to 2029 financial years.
Pernod now guides organic net sales growth to average near the “lower end” of its 3% to 6% range – around 3% – dragged down by prolonged softness in the US market.
