News

Absolut price must hold firm in the US - Pernod Ricard CEO

Most popular

Why COVID-19 has restored plastic's popularity

Brown-Forman Performance Trends 2016-2020 - data

COVID-19 a double-edged sword for CBD

Remy Cointreau Performance Trends 2016-2020

Is there something wrong with C&C Group? - comment

MORE

The CEO of Pernod Ricard has said the company must stand its ground on Absolut's pricing in the US, in the wake of increasing pressure from the other players within the vodka category.

Absolut Lime rolled out to the US last month

Absolut Lime rolled out to the US last month

Yesterday, Pernod Ricard posted a 4% lift in half-year sales, as the group continues to see growth driven by the US market. However, success in the country was driven by the Jameson Irish whiskey brand, while Absolut continued to struggle.

In a conference call following the results announcement, group CEO Alex Ricard said the key to tackling price pressure from the vodka segment is to maintain the brand's position.

"Absolut's Nielsen's [value depletions] are down 5%, NABCA [National Alcohol Beverage Control Association] down 1%, so the underlying performance is anywhere between these two numbers, basically a little bit more difficult than anticipated," he said.  "We have seen over the last 12 months a lot of pricing activity within that segment, which is affecting the performance of Absolut as a brand, and I would say our challenge from a pricing point of view is not to lower our price but to be more efficient from a promotional strategy point of view."

Ricard said the company aims to stabilise the brand in the US in the "medium term", noting the recent launch of a new advertising campaign, the launch of Absolut Lime and success for super premium expression Absolut Elyx in the market. 

"Absolut Elyx is posting some strong numbers... albeit from a low base," he said. "Absolut Elyx, I think, is now the most expensive super premium vodka brand of size in the US."

The CEO said the country is the "most important margin" for Pernod, both in the Americas and globally.

Elsewhere, the Absolut brand appears to have stabilised. Half year sales for the vodka were up 1% with a 2% rise in volumes.

The Vodka Category - Everything you need to know - click here for just-drinks' latest Spirits Essentials coverage


Related Content

How did Pernod Ricard perform in Q1 fiscal-2020? - results data - just-drinks comments

How did Pernod Ricard perform in Q1 fiscal-2020? - results data - just-drinks comments...

Why vodka's US woes could soon be drowned out by success elsewhere - Comment

Why vodka's US woes could soon be drowned out by success elsewhere - Comment...

"In the future, all of our products should be in paper packaging" - Louise Werner, director of futur...

Millennials are not the only fruit for Absolut - Comment

Millennials are not the only fruit for Absolut - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?