The French drinks company Pernod Ricard reports a drop in sales in the first half of the fiscal year 2020, ending December 31st. Sales totalled €4,985m, with an organic decline of -3.9%, mainly due to the pandemic and travel restrictions but also to unfavourable exchange rates.
The company lists the following trends in its statement:
- Americas +2%: good growth in most domestic markets, with particular dynamism in USA (+5%), but significant decline in travel retail
- Asia-RoW -6%: double-digit growth in China (+13%), Turkey, Korea and Pacific, and return to growth in India in Q2: +2% (India H1 -6%), but Covid-related declines in certain Asian markets and travel retail
- Europe -5%: continued very strong growth in Germany, UK, Russia and Poland, more than offset by Covid impact in Spain, France, Ireland and travel retail
- Sales excluding travel retail grew +1%
The so-called “Strategic International Brands” declined due to travel retail and on-trade exposure. However, the categories “Specialty Brands” and “Strategic Wines” performed better:
- Strategic International Brands -6%: solid growth of Malibu, Jameson and The Glenlivet, but overall category impacted by travel retail exposure. Martell and Scotch growing in domestic markets
- Strategic Local Brands -4%: mainly driven by Seagram’s Indian whiskies and Seagram’s Gin in Spain
- Specialty Brands +22%: continued very dynamic development of Lillet, Malfy, Aberlour, American whiskeys (Jefferson’s, TX, Rabbit Hole and Smooth Ambler), Avion and Redbreast
- Strategic Wines +3%: solid growth thanks mainly to Campo Viejo and Brancott Estate
