Jameson boosts Pernod Ricard

GROWTH of 14% in the sales Jameson Irish whiskey helped drive global sales at Pernod Ricard in the first nine months of its financial year.

The world’s second largest drinks group reported a modest increase in sales in the period to March 2008.

A strong performance in its 15 key brands helped to keep sales positive in a difficult market.

In its statement the group warned operating profits could take a hit of up to €110 million due to currency weakness in key markets such as the US, China, Korea and Britain, knocking 3.6% off annual earnings.

The group reported growth across most major markets with total sales ahead 3.9% to over €5 billion.

Emerging markets were a key driver of sales as well as the performance of its leading brands.

Jameson, made by Irish Distillers, a Pernod subsidiary since 1988, remains the fasted growing whiskey brand on world markets.

The global trading pattern shows a mixed performance by the group however.

Sales in the third quarter in Asia and the rest of the world rose 8.7% to €1.6bn brands such as Martell, Ballantine’s and Chivas Regal delivering two thirds of the growth.

In the Americas including north, central and south America net sales were down 3.8% to €1.3bn reflecting serious weakness in the US.

Third quarter consolidated net sales figures reflected that weakness with sales down 1% to €1.38bn, but organic growth of 7.1% was achieved thanks to continuing expansion of emerging markets, now accounting for close to 30% of group sales.

Pernod said a good performance in western Europe also helped the performance for the period where sales, excluding France, its home market, were up over 5% to €1.7bn.

In late March, Pernod won a battle to buy the maker of Absolut vodka in a €5.63bn takeover.

Its acquisition of Sweden’s Vin & Sprit brings Pernod nearly level in sales with Diageo, the owners of Guinness.

Pernod Ricard chief executive Patrick Ricard said: “The dynamism noted in the third quarter of 2007/08 is in line with our expectations and again reflects the quality of our brands portfolio.”