Jameson leads the way as spirits giant Pernod Ricard sales surge by 8.4%
Growth in Asia was a key force behind the higher figures with the rest of the world also helping the cause, the company said.
In its home market, sales were down 6.4% and up 7.6% in the rest of Europe. In the US, organic growth was negative recording a decline of 1.8%.
Seagram’s Gin volumes were significantly down (-18%), because 2004 first quarter volumes were boosted by an increase in net sales. That negative technical impact masked the underlying growth of Jameson and The Glenlivet as well as confirmation of the recovery of Martell and Chivas Regal
Pernod Ricard, the world’s third-largest spirits group, is in takeover talks with Britain’s Allied Domecq in an attempt to consolidate its global position. It has offered £7.4bn for the group (€10.8bn).
The maker of Jameson Whiskey, Martell cognac and Havana Club rum said, in the three months to the end March 2005, wines and spirits sales increased to €753m from €704m. In the context of the overall figures Jameson was again one of the group’s leading performers with sales up by 10% in the three months.
Last year the Irish whiskey brand was also among the group’s strongest performers achieving a sales increase of 10% for the 12-month period.
In the current year both Asia and the rest of the world made a very solid start to the year recording 18.5% organic growth over the period.
In Ireland the group’s fortunes have steadied. Sales in 2004 fell 12% but have bottomed out at this point, a company spokesman said. Its sales were hit hard following the 42% hike in excise duties on spirits introduced in the 2004 Budget.
The group’s bid for Allied Domecq is progressing, but has been complicated by a proposed counter bid.
This emerged from the world’s largest winemaker, Constellation Brands, that has formed a bid consortium with Brown Forman and private equity firms Lion Capital and Blackstone.
Allied would have to pay a penalty of £37m to Pernod Ricard if it accepted a rival takeover bid within half a year, reports said.
If Pernod buys Allied it raises complications for C&C which distributes Allied’s products in Ireland. That deal is said to be worth €2m a year to C&C.
