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GLOBAL: Pernod Ricard looks beyond China for Martell

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Pernod Ricard will focus on promoting its Martell Cognac brand more broadly around the world, as slowing growth for the category in China continues.

The company has seen sales of Martell – and its bottom line – suffer after the introduction of anti-extravagance measures in China in late-2012. The ban on opulent spending in the country contributed to a slowdown in its performance in the year to the end of June last year.

Between 50% and 60% of brand Martell's sales come from China.

Speaking to just-drinks earlier today (5 June), Pernod CFO Gilles Bogaert said that Pernod is looking to “globalise” Martell. “We would like to grow Martell in markets such as the US, Russia and Africa,” Bogaert said. “The US especially will become more of a priority market for Martell going forward. We can see opportunities for growth in the country, for example within the Hispanic community.”

On China, Bogaert noted: “We do not expect Cognac to grow in China at the same rate as it did before (the measures). We're confident that growth will come back – in the mid-term, we expect high single-digit growth to return - but it won't come back to the 20%-plus rates.”

To read an interview with Bogaert from 2010, click here.


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