just The Preview - Pernod Ricard Q1

Pernod Ricard will report results for its fiscal first quarter tomorrow (20 October). Here, just-drinks brings you highlights of the company’s news in the three months to the end of September.

During September, Pernod Ricard launched its Ballantine’s Christmas Reserve blended Scotch whisky, as well as a new gin, Beefeater Winter Edition.

Earlier in the month, at the firm’s full-year results conference call, Pernod’s managing director of finance, Giles Bogaert, said that the Absolut vodka producer was “open to making disposals”, despite having completed its project to sell off EUR1bn-worth of non-core brands.

In the firm’s full-year results, it said that Jameson Irish whiskey in the US and Martell Cognac in China boosted sales in an otherwise difficult year. Net profits for the 12 months to the end of June crept up by 1% on the previous year, to EUR951m (US$1.2bn).

Pernod Ricard’s subsidiary in Canada, Corby Distilleries, reported a drop in full-year earnings amid ongoing weak consumer demand for the firm’s products.

In July, Pernod moved to significantly restructure its business. It created a separate Premium Wines division to include major international brands such as Brancott Estate, Jacob’s Creek and Campo Viejo. Jean-Christophe Coutures, chairman and CEO of the firm’s Pacific division, was appointed to lead the new wine arm. Pernod also announced the departure of managing director for distribution, Michel Bord, with his responsibilities switching to group CEO Pierre Pringuet.

Also in July, Pernod confirmed the sale of its Bodegas Marques de Arienzo winery in Spain for EUR28m (US$35.7m) in cash, including the Marques de Arienzo and Vina Eguia brands and 358 hectares of land. A consortium made up of Vinos de los Herederos del Marqués de Riscal and Gangutia SL (Bodegas Muriel) has bought the assets. Separately, the firm also sold off its interest in the Ambrosio Velasco Spanish wines and liqueurs business to Diego Zamora for EUR33.1m (US$40.5m) cash.

The group has promoted Royal Salute Scotch whisky to its list of 14 priority spirits and Champagnes, reflecting the brand’s appeal to luxury consumers in Asia. It launched Royal Salute 62 Gun Salute at more than US$2,000 per bottle.