Pernod revises growth forecast upwards

IRISH Distillers owner Pernod Ricard, the world’s second-largest wines and spirits group, said because of stronger organic growth it has revised upwards its full-year growth forecast for its current financial year.

In the first six months to December 31, the French drinks giant, which owns Irish Distillers, said strong volume growth of 10.1% in the first half will be followed by solid growth of 9.1% in the second half.

Jameson Whiskey, produced in Midleton, continued to do well internationally for the group achieving a volume increase of 16% in the half year.

Overall net sales for the period rose by 5.7% to €3.7 billion, up from €3.5bn in the first half of 2006-2007.

The group said its 15 strategic brands, which include Chivas Regal whiskey and Martell brandy and Jameson, were the main drivers of the growth over the half year.

Sales of those brands rose by 7% in volume and by 13% in value terms, reflecting a good pricing strategy as well as an evolving product mix to suit each market served by the group.

Despite the stock market turmoil of recent days, Pierre Pringuet, managing director, said he was optimistic the current year will deliver strong growth as the group indicated in its statement to the market.

In his comments to the market, group chairman Patrick Ricard, said the “sales dynamism” across leading brands in the portfolio, including Chivas Regal and Ballantines, combined with the group’s broad geographic spread, proved the group sales model’s ability to deliver good growth.

The group will spend up to €67 million on advertising and marketing this year to ensure it continues to expand.

Jameson is forecasted to achieve sales of 3 million cases by the end of this decade having sold 2.3m last year.

The group employs 600 people in Ireland.