Dive Brief:
- Pernod Ricard reported growth in several segments, brands, and markets for the three months leading up to Sept. 30, including overall organic sales growth of 3% to £1.6 billion ($2.47 billion).
- Revenue growth came in at 9%, increased by currency fluctuations, and global sales volumes jumped 6%.
- The Americas, which make up 28% the company's turnover, had 6% sales growth, including an 8% increase in the U.S.
Dive Insight:
"The beginning of the financial year is consistent with our scenario of continued gradual improvement in Sales in a contrasted environment. ... We continue to implement our long-term growth strategy, while increasing investments behind our priority brands and innovations and remaining very disciplined on costs and pricing," said Alexandre Ricard, chairman and CEO, in a statement.
These numbers could pose a threat to one of Pernod Ricard's main competitors, Diageo, which reported a 3% decline in volume in North America in its last earnings report.
Pernod Ricard's 8% sales growth in the U.S. was driven by a 26% sales increase for its Jameson whiskey brand, which is in line with U.S. consumers' increasing demand for both whiskey and premium spirits. Pernod Ricard has been able to capitalize on these trends despite not having much of a brown-spirit portfolio, including no bourbon brands, unlike Diageo.