Pernod Ricard Global Travel Retail has posted a -6% decline in Q1 FY2020 sales for the three months to the end of September, driven by a “very strong” comparative period and promotional phasing in Europe.
Speaking to The Moodie Davitt Report during the TFWA World Exhibition this month, Pernod Ricard CEO Alexandre Ricard described travel retail as an “absolute must-win” market for the wines & spirits company, alongside the US, China and India.
Nonetheless Pernod Ricard, as a whole, reported positive results. Overall sales for the quarter totalled €2.48 billion (US$2.72 billion), an organic year-on-year increase of +1.3% (+4% reported).
Furthermore, all the other ‘must-win’ markets identified by Ricard saw growth. The US was up +6%, China ahead by +6% and India gained +3%, despite strong comparison bases for China and India.
Commenting on the overall results, Ricard said: “Q1 growth was moderate, as expected. In an environment that remains particularly uncertain, we confirm our FY20 guidance of organic growth in profit from recurring operations of between +5% and +7%.” 
In a more in-depth regional breakdown, Pernod Ricard reported that the US market was +6%. This came from Jameson performing well thanks to the development of Black Barrel, dynamism for The Glenlivet and solid growth for Malibu and Kahlua. Absolut was however still in decline.
China saw overall good growth, the company said, despite a softer on-trade environment. Martell performed well, but Chivas was in decline because of the challenging on-trade.
India benefitted from double-digit growth for Jacob’s Creek and the Strategic International Brands portfolio.
In Europe, France was +3%; Spain was stable with the gin portfolio gaining share; the UK was -1% despite strong gin dynamism; Germany had strong growth thanks to Lillet, Havana Club and Absolut; and Russia continued double-digit growth thanks to Strategic International Brands.
In the Americas, Canada saw a decline despite double-digit growth for Jameson; Latin America saw modest growth with continued dynamism in Brazil.
Elsewhere, Japan continued its strong growth, which was led by Chivas and Perrier-Jouët; South Korea saw significant decline despite improving performances for Strategic International Brands; and Africa/Middle East was +9%, driven by Turkey, Nigeria, West Africa and Angola.
Brand portfolios
The Strategic International Brands portfolio was +3% for the quarter, despite a strong comparison base for Martell. The acceleration of Jameson, Beefeater, Malibu and Havana Club aided the brand group.
Strategic Local Brands was +2%. The softer growth was due to a strong Q1 FY19 for Seagram’s Indian whiskies.
Speciality Brands was +15% thanks to a dynamic performance for Lillet, Monkey 47, Del Maguey and Altos.
Finally, Strategic Wines was -2% because of the continued implementation of the value strategy on Jacob’s Creek.
