Pernod Ricard highlighted the launch of Absolut Lime earlier this year

Pernod Ricard highlighted the launch of Absolut Lime earlier this year

Pernod Ricard will look to increase spend on its Absolut vodka brand in the US on-premise, according to the group's MD of finance & operations, as it looks to counter under-performance in the channel.

Speaking to analysts yesterday, following the release of the company's fiscal-2017 results, Gilles Bogaert said Pernod intends to invest more in on-premise promotions for the brand in the US during fiscal-2018. The on-premise accounts for a third of Absolut sales in the US market, Bogaert noted.

"It's a very important channel, where we have under-performed," he said. "We want to activate the brand more in that channel to regain some more traction. We will leverage strong activation and stronger promotion on the brand in the on-trade next year."

Group CEO Alex Ricard said the US vodka market continues to be "extremely competitive". 

"Absolut is still down in a category ... which has worsened over the last 12 months," he said. However, Ricard highlighted the "very strong and successful" launch of Absolut Lime in February

Overall, brand Absolut saw sales grow 2% and volumes lift 3%. "Outside of the US ... we see very strong growth of 6% for Absolut, driven by Latin America, by Europe and as well by Africa," added Ricard. "And, we could also say by China."

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