Jameson helps Pernod Ricard return to growth

Net global sales of Jameson Irish whiskey grew by 9% on an annualised basis in the three months to the end of September; the first quarter of parent group, Pernod Ricard’s financial year.

Only half of the French drink giant’s so-called ‘Top 14’ list of brands achieved net sales growth in the period, but the group itself saw a transformation in fortunes by achieving organic sales growth of 2%, with sales topping the €2bn mark.

Group chief executive, Pierre Pringuet said the return to growth in the quarter illustrates the group’s resilience in “a difficult context”.

“We are confident in the strength of our portfolio and distribution network,” the chief executive said.

Alexandre Ricard, the group’s deputy chief executive and chief operating officer, added: “For the full financial year we anticipate a gradual improvement in sales, in an environment that will remain difficult.”

“We plan to increase investment behind our priority brands and innovations. As a result, our 2014/15 guidance is organic growth in profit, from recurring operations, between 1% and 3%,” he added.

A breakdown of Pernod’s first-quarter performance shows a mixed bag. In Europe, sales slipped by 1%, on a year-on-year basis, but continued growth in the Americas — where sales were up by 3% annually —and improvement in Asia and the rest of the world, sales rising by 4%, balanced out the period.

In terms of brand, half of the group’s 14 leading labels — which include, as well as Jameson; Malibu, Havana Club, The Glenlivet, Absolut, Chivas Regal, Beefeater, Martell and Ballantine’s — registered net sales increases during the three months under review.

Jameson ranked as the third best-selling brand, behind Mexican liqueur, Kahlua and The Glenlivet scotch whisky; which recorded sales increases of 23% and 17% respectively.

Jameson’s volume growth, for the first quarter, amounted to 8%.

On a combined basis, the group’s 14 leading brands showed annualised net sales growth of 2% for the period.