Pernod Ricard is set to release details of sales in its third quarter on Thursday (29 April). Below, we take a look at the highs and lows for the firm in the three months to the end of March.
- Early this year, Pernod confirmed that it had received the green light from Swedish authorities to double production capacity at its Absolut vodka unit, as it looks to rebuild growth for the brand. The division hopes to return volume sales growth to 7% to 8% annually, which it enjoyed prior to the global economic downturn. Absolut’s global volume sales fell 6% in Pernod’s most recent fiscal year, to the end of June 2009.
- Then, in February, Pernod lined up the divestment of several assets in Sweden and Denmark, including drinks brands, to Altia. Included in the EUR82m (US$112m) sale were local wine and spirits brands, such as Explorer vodka, Lord Calvert whisky, 1 Enkelt bitter, Blossa glögg and Chill Out wines. A bottling facility located in Svendborg, Denmark, and two logistic centres located in Odense, Denmark and Årsta, Sweden, are also part of the sale.
- Just over a month ago, Pernod said it plans to raise extra finance by launching a Euro-denominated bond. Details of how much the company is looking to raise were not disclosed, with the timing of the issue being dictated by “market conditions”.
- Also in early March, just-drinks was granted an exclusive audience with Pernod’s recently-appointed CFO, Gilles Bogaert. In the interview, Bogaert reiterated Pernod’s commitment to a strategy of premiumisation to drive growth.
- Finally, in the first week of April, the long-running legal row between Pernod and Bacardi over the Havana Club trademark saw a district court in the US rule that the origin of Bacardi’s Havana Club rum is “geographically accurate” as the bottle states that the rum is made in Puerto Rico. Pernod immediately countered the ruling, saying that it would appeal the decision.
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