Pernod Ricard: strong first half-year but UK sales dip
Pernod Ricard has reported a “very strong” first half-year global results, although UK sales dropped due to a change in strategy across its wine portfolio.
Pernod recorded an 11% growth in profits for the six months to December 31, 2018.
Growth was driven by double-digit increases across its Asian markets, especially China and India, while the Americas also saw a 4% rise in sales.
In the UK sales declined because the company said it adopted a "value-based approach" for Jacob’s Creek with a focus on the brand’s higher-end styles, and it implemented less promotional activity on Campo Viejo.
Despite this, the UK arm of the company out-performed the spirits market with double-digit sell out, and particularly strong performances on gin, aided by a “very successful” launch of Beefeater Pink. Jameson also performed well, the company said.
And globally, Beefeater Gin grew 9% with a strong performance across all regions. Beefeater Pink, which was launched in April 2018, helped drive this growth, particularly in the UK market.
Martell, Jameson, Scotch and Gin all performed well on a global basis while strategic local brands such as Seagram’s Indian whiskies were also highlighted by the company.
For the full-year 2019 Pernod Ricard said it expects good diversified growth to continue, despite the uncertain economic environment ahead.