Pernod sees emerging markets compensate for flatter champagne sales

Pernod Ricard reported a 4% overall organic decline for its first quarter of 2009-10 (1st July – 30th September). It has experienced a difficult market in Europe, off-set by ‘buoyant growth’ in emerging markets.

The economic temperature was felt by Pernod in terms of a sharp decline in champagne sales. It attributed an organic decline in sales in France of 3% primarily to reduced consumption of Mumm champagne. Overall, Perrier-Jouet declined by 38%. Combined wine and champagne sales were down 13%, whereas Spirits only fell by 2%,

In terms of Pernod’s ‘15 Strategic Brands’, Martell and Havana Club were both strong performers, at +13% and +6% respectively. However, the strategic brands were set back both by the champagne decline and by Ballantine falling 15%, as a result of it struggling in Asia and Eastern Europe.

Pernod’s local brands performed more strongly with Indian whiskies being star performers. Royal Stag recorded volume growth of +33%. In terms of world regions, growth of 26% in India and 19% in China, helped Asia/Rest of the World to achieve organic growth of 3%. In contrast, Europe saw a fall of 11%, with a significant decline in Russia and Poland.

Reflecting on its results, Pernod said that its first quarter of 2009-10 was satisfactory, after taking into account its record first quarter in 2008-9. The company will be increasing advertising and promotion in its strategic brands to help keep it on track in the forthcoming quarters.

27 October 2009