Jameson owner sees no supply issue as sales drive Pernod Ricard growth

Irish Distillers says it's mitigated supply chain problems as record sales of Jameson drive revenues for its parent company

Thu, 10 Feb, 2022 - 18:54

Geoff Percival

Jameson owner Irish Distillers has said it has successfully mitigated any serious supply chain problems, with record international sales of the iconic whiskey heavily driving better-than-expected first-half revenues for parent group Pernod Ricard.

The French drinks giant – the second-largest spirits maker in the world behind Diageo – said organic sales for the six months to the end of December grew by 17%, beating market estimates of 15% growth.

Pernod Ricard owns the likes of Absolut vodka, Mumm Champagne and Martell cognac.

Record first-half sales of the iconic Irish whiskey

However, Jameson remains one of its very key brands and the Irish whiskey saw record first-half sales in the latest six-month period.

Jameson sold 5.8m cases over the six months, representing year-on-year volume growth of 22%.

Irish Distillers said it saw Jameson along with its popular Spot range and Redbreast brand achieve their highest ever first half volume growth as global travel retail returned to growth as Covid travel restrictions lifted during the second half of 2021.

Irish Distillers said it has mitigated supply chain problems, with Jameson sales reaching record levels in the six months to the end of December.

“Our teams and our suppliers have responded with flexibility and agility to mitigate any supply issues and we are doing very well in this context,” Irish Distillers said.

On a geographic basis, Jameson saw 8% growth in the US, 16% sales growth in the UK and surged by over 40% in South Africa.

“Jameson is in growth in all key regions around the world, demonstrating the ever-increasing affinity for the brand on a global level," said Irish Distillers chief executive and chairman Conor McQuaid.

New generations of consumers and changing lifestyles are boosting this growth and we will continue to ignite, or in many cases re-ignite, a passion for Irish whiskey in markets around the world.

“In the first half of the financial year, we saw the world begin to cautiously return to pre-pandemic activities with the return of international travel, social engagements and in-person events in some markets," he said.

"This improving situation supported the growth of our full portfolio of Irish whiskeys led by Jameson."

Pernod Ricard CEO and chairman Alexandre Ricard said it is "too early" to make a "quantitative" guidance for group sales or profit growth in its current financial year, but said he remains "very confident" over growth momentum.