Jameson sales drive Pernod Ricard growth in first quarter

Continued strong sales momentum for Jameson Irish Whiskey, in key overseas markets, helped international drinks giant Pernod Ricard make a positive start to its current financial year.

The Paris-headquartered group — second only to Guinness owner Diageo in global scale — yesterday reported first-quarter sales (for the three months to the end of September) of just under €2.25bn. This marked like-for-like growth of 4% for the quarter, thus beating analyst targets of 2.9%.

The positive first-quarter showing was driven by 8% sales growth in the Americas — boosted by continued strength in the US — and solid growth of 6% in Europe.

Strategic brand sales were up 3% and were seen as a key driver of overall growth. That was a result, management said, of the continued strong momentum on Jameson, good growth on Ballantine’s and improvement on Absolut and Martell.

“We have had a good start to the financial year, consistent with our full-year guidance. Therefore, we confirm our fiscal year 2017 guidance of organic growth in profit from recurring operations of between 2% and 4%,” said group chairman and chief executive Alexandre Ricard.

“We will continue to implement our long-term growth strategy, focusing investments behind our priority brands, markets and innovations and remaining disciplined on pricing and costs,” he added.

Pernod Ricard’s Irish arm, Irish Distillers, recently attacked Ireland’s high excise rates, saying they pose challenges for domestic sales.

Meanwhile, the Irish Whiskey Association yesterday launched a new mentoring programme aimed at making the market more accessible to new entrants.

The programme will see industry experts and leading players share knowledge concerning areas like licensing requirements, branding, route-to-market and production with potential new entrants.

“This is a unique programme which will see industry leaders support new market entrants and showcases the collegiality amongst industry and members of the Irish Whiskey Association. The mentor companies will share information, expertise and knowledge with new entrants enabling them to plan and succeed in the Irish whiskey business,” said Irish Whiskey Association chief Miriam Mooney.

“The advice and support of industry experts is invaluable in helping companies navigate difficult issues,” added IWA chairman Bernard Walsh.