Pernod Ricard has reiterated its commitment to the wine category, despite long-standing speculation linking the group to a divestment of its wine brands.
Earlier this year, media reports claimed Pernod, which owns Brancott Estate, Campo Viejo and Jacob’s Creek, had held early-stage discussions about an offload of its full wine portfolio. While the group declined to report on the speculation at the time, a 5% slide in sales in the 12 months to the end of June from Pernod’s ‘strategic wines’ has put the company’s wine operations back under the spotlight.
However, in an exclusive interview with GlobalData’s just-drinks this week, group CFO Hélène de Tissot emphasised several consumer trends that play well with Pernod’s continued presence in wine.
“There are trends within wine that are quite relevant to the consumer, such as low-alcohol, female consumption and the meal occasion,” de Tissot told just-drinks. “There are many things that make a lot of sense from a strategic point of view when we talk about our wine portfolio, whatever the short-term performance could be.”
Pernod has adopted a value strategy in wine, raising prices on its cheaper offerings and encouraging consumers to trade up. “We’re ready to accept some significant delistings where we believe there is no room for value creation for us,” de Tissot said. “We believe that everything we’ve been doing with our wine brands is consistent in terms of a value proposition to the consumer.
“This can support a more aggressive pricing position.”
Click here to read part one of just-drinks’ exclusive two-part interview with de Tissot.