INTERNATIONAL. Pernod Ricard Travel Retail says it will significantly increase its share of the world-wide duty free/travel retail market following its acquisition of Allied Domecq (with Fortune Brands).
The key brands to be integrated include Ballantine’s whisky, Beefeater gin, Perrier Jouet and Mumm Champagnes, Malibu, Kahlúa and Tía María and other liqueurs.
Christian Porta, Head of Pernod Ricard Travel Retail and Chairman and CEO of Chivas Brothers, commented: “The addition of these strategic brands will strengthen Pernod Ricard Travel Retail’s current portfolio, particularly in the whisky sector, and will especially bolster our liqueur and Champagne offering.
“Ballantine’s presents a strong opportunity in volume and value terms and like Chivas Regal, it is a true global brand within the Scotch whisky category. It is the number three Scotch in travel retail and number seven spirit [Source: IWSR]). One of the key dynamics of Ballantine’s in travel retail is that over 25% of its volume lies in 17yo upwards (17yo, Limited, 21yo and 30yo) and that it is particularly strong in Asian duty free.”
Porta added: “Ballantine’s volumes grew in 2004. This was particularly effective in the 17yo and upward category and we look forward to continuing this trend. All Ballantine’s references have fantastic potential in travel retail; there is still an enormous standard category where we hope to develop Ballantine’s Finest further, and we also see many opportunities within the super-premium category.”
The group will also be incorporating Beefeater Gin into its portfolio. “Beefeater has had a stable performance in travel retail over the past years and will be the international gin priority. Pernod Ricard will look at how to develop further the brand and leverage its excellent pedigree as a premium London Dry Gin still distilled in London,” the company said.
The liqueurs category, the third biggest in travel retail, also provides “fertile soil” for growth, Pernod Ricard said. With the incorporation of Malibu, Kahlúa and Tía María, the group has acquired the numbers two, three and seven brands in the category. Additionally, within the Champagne sector, Pernod Ricard now owns two of the top 10 brands in travel retail, Perrier Jouet and Mumm.
“Pernod Ricard Travel Retail is number two supplier in the US$4 billion global duty free/travel retail liquor sector, and number one in key travel retail markets such as Asia Pacific. Our mission will be to integrate these newly-acquired brands into our portfolio and to develop them in order to grow our status within the market,” concluded Porta.
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