Jameson ‘tops for growth rate’

IRISH Distillers’ Jameson whiskey brand is outpacing all its rivals on the world stage in terms of its current growth rate, according to figures published yesterday by the group’s parent.

It is part of French drinks giant Pernod Ricard and has benefited from its extensive global reach for several years.

The performance of Jameson internationally and good wine sales domestically are the good news features from Irish Distillers for the first six months of the year. But recently appointed chief executive, Paul Duffy, said the crippling 42% hike in excise imposed on spirits in the 2002 Budget skewed the market and made beer and other drinks more attractive to the consumer, he said.

Mr Duffy took on his current job in July after four years heading up Pernod Ricard’s British operations. While the market in Ireland has been difficult, there are signs that the situation may have bottomed out. Some pick-up in the current year is definitely on the cards, judging from very modest gains in the first half, he said.

Particularly encouraging was the 6.5% rise in the group’s wine sales, which were 1.5% above the growth in the market of 5% over the period, he said.

Jacobs Creek and Wyndham Estate are its two major offerings and both have delivered over the six months, especially Wyndham Estate, a wine geared to the better end of the market.

With Jameson the fastest growing international whiskey in the world, Irish Distillers is pinning much of its hopes on the brand.

In the US sales are rising by 20% a year and Mr Duffy said he would like to repeat that success in three or four other markets in the years ahead. Without the conflict of trying to promote Bushmills (now owned by Diageo), the group has greater “clarity” with its major Irish brand.

In South Africa sales were ahead an impressive 64%, while across Europe a more modest but still respectable 8.1% increase in sales was achieved, which Mr Duffy regards as impressive given Europe is an economic zone that has been struggling for some time.

The net current profit was up 4.4% to €182 million (up 10.3% excluding currency effect).

Consolidated operating profit was €288m.

In total, the profit before tax grew by 1.2% to €246m. Group net profit declined by 7.2% to €157m, due to an exceptional expense of €20m arising from the preparation for the Allied Domecq acquisition.

For the 18 months to 30 June 2005, consolidated sales were €5,241m, gross profit was €3,447m, and operating profit was €1,030m.

Group net profit was €644m, while the group had net debt of €1,991m at the end of June.

The board has proposed the payment of dividend of €1.08 payable on 17 November 2005.