Pernod Ricard concerned over drinks industry and calls for ‘solid, sustainable home market’

IRISH Distillers owner Pernod Ricard says it is very concerned about the drinks industry in Ireland. It has called for Government support to not make a difficult situation even worse.

This comes as sales of its flagship whiskey brand, Jameson grew 8% by value worldwide in the year ending June 30, 2009.

Chairman and chief executive of Irish Distillers Alexandre Ricard said: “In contrast to this optimism, the performance of Irish Distillers in Ireland, and the drinks industry in general, is very concerning.

“We need a solid, sustainable home market on which we can continue to build the great export success that is Jameson. I would call on all stakeholders in the drinks industry, including Government, to recognise the hugely significant contribution in terms of taxes, jobs, tourism which we make, and not to take any action legislative, fiscal or regulatory which would make a very difficult situation even worse.”

Pernod Ricard said this was “another successful year” globally for its brands with Jameson sales surging 22% in the US and growing by 8% by value worldwide.

The whiskey also showed growth in Bulgaria (+46%), Russia (+14%), Australia (+9%) and South Africa (+4%). The company refused to give sales figures for Ireland.

The company said that for the 12 months to the end of June, the spirits market in Ireland declined by just more than 11% and accelerated to 20% for the six months to June.

It said its key spirit brands are suffering similar levels of decline which are somewhat offset by an upswing in sales in the North.

It also said it lost share in a “tough wine market” as a result of changing patterns of consumption and deep discount trading.

On a group level Pernod Ricard, the world’s second-largest liquor maker, indicated yesterday that weak demand for alcoholic drinks will persist through 2010, while its tax rate will be higher than some analysts expected.

Chief executive officer Pierre Pringuet said he expects global stagnation for the spirits industry over the next 12 months.

He also said results for the fiscal first half will look “unfavourable” when compared with the same period in 2008, before Pernod began suffering as US wholesalers reduced their inventories.

Shares of Pernod, whose brands include Absolut vodka and Chivas Regal whiskey, fell as much as 6.5%, even as the company posted full-year profit growth that surpassed analysts’ estimates.