Pernod Ricard with drop in sales

The French drinks company reports declines due to the pandemic.

Pernod Ricard's brand Campo Viejo showed a solid growth.
Pernod Ricard's brand Campo Viejo showed a solid growth.

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

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