Dive Brief:
- Pernod Ricard, maker of Kahlua, Absolut vodka, Chivas, and a slew of other brands, said sales rose 2% in its most-recent quarter to $2.58 billion.
- The French company, which trails only Diageo in global sales of liquor, said it continues to struggle in China. Sales there fell 9%.
- The return to growth was attributed largely to a rise in sales among the company's brands of Scotch whiskies, which include Chivas, Ballantine's, and Glenlivet.
Dive Insight:
It's been a busy few months for Pernod Ricard as it seeks to buffer itself from the fallout in China stemming from the anti-corruption campaigns that have hurt luxury goods-makers like Pernod Ricard, Remy Cointreau, and others.
Pernod has been buying vineyards to boost sales in the U.S and taking control of tequila brands for the same reason. Such strategies may work.
But for now Pernod Ricard is being cautious, saying things will remain "difficult" and predicting only a slow, gradual improvement in sales.