Pernod Ricard reports “dynamic” sales performance in Q1; travel retail remains subdued

Travel retail sales remain subdued though they leapt by +55% compared to a weak Q1 last year (Jameson Taste House at Dublin Airport pictured)

Pernod Ricard today reported first-quarter sales (to 30 September) of €2,718 million, up by +22% on a reported basis and +20% in organic terms. All regions posted a “dynamic start” to the financial year, with the key markets of India (+27%) China (+22%) and USA (+9%) performing well.

Travel retail sales remain “very subdued” said the company but with +55% growth year-on-year benefited from a low basis of comparison with Q1 last year. Pernod Ricard noted that international travel is “recovering very gradually with some easing of travel restrictions and progressive reopening of borders”.

By category, sales were driven by:

    • Strategic International Brands: +24%, with broad-based growth, in particular for Martell, Jameson, Ballantine’s, Chivas Regal and Absolut and a positive price/mix.
    • Strategic Local Brands: +15%, driven by strong double-digit growth of Seagram’s Indian whiskies.
    • Specialty Brands: +21%, thanks in particular to Malfy, Avion, Del Maguey, Aberlour, Monkey 47, US whiskeys and Lillet.
    • Strategic Wines: -7% (vs. +9% in Q1 FY21) due in particular to New Zealand supply constraints.

Pernod Ricard Q1 net sales by region and (below) the performance of ‘must win’ markets; click to enlarge
Chairman and Chief Executive Officer Alexandre Ricard said: “We have had a very dynamic start to the year, as expected, with strong demand in most markets. The off-trade remains resilient and I am particularly pleased to note the continued recovery of the on-trade.

“We expect good sales growth to continue through FY22, albeit moderating versus Q1. We will continue to implement our strategy, notably accelerating our digital transformation and reinvesting to seize present and future growth opportunities.”

*In one of the major highlight sessions in the Knowledge Hub at the Virtual Travel Retail Expo last week, Alexandre Ricard issued an upbeat message about the future of travel and of travel retail as a brand-building channel. Click on the video above for full highlights. A Pernod Ricard panel also discussed insights and strategies that will help reshape the future of travel retail. Click here for more.

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