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Pernod Ricard Travel Retail delivered an “excellent” first-half performance with increased passenger traffic in Asia and strong demand from Eastern European and South American consumers.
By region, Pernod Ricard Asia Travel Retail reported organic volumes up by +17% and net sales up +22% in the first half.
Passenger traffic increases, the development of the Chinese traveller and the ever-growing demand for high-end spirits, such as the super-premium whisky Royal Salute, demonstrated the relevancy of its premium strategy, the company said, also pointing to its innovative Martell Boutique stores in Hong Kong and Kuala Lumpur airports.
Despite the tough overall European economic climate, Travel Retail Europe delivered “very good” results in the six months to December with organic volumes up + 12% and net sales up +21%, supported by a significant increase in advertising and promotions, up +16%.
These results were due to strong overall passenger traffic increase in Europe, particularly from Russia and Eastern European travellers.
Strong visibility campaigns
Marketing innovation with new brand launches and special editions (Chivas Regal Le Baron, Absolut Watkins and The Glenlivet Master Distillers Reserve), a positive mix of premium and super-premium references across the portfolio and strong visibility campaigns implemented across the region drove market demand.
In a “challenging and very competitive” environment, Pernod Ricard Americas Travel Retail delivered positive results in this first-half 2011/2012 with volumes up +8.3% and net sales rising +14%.
The key market drivers were Brazil duty free and US duty free with an important overall traffic increase in the region, and a particularly high demand in US airports from foreign travellers.
Pernod Ricard Managing Director of Distribution Network Alexandre Ricard said: “We are very pleased with the strong business and financial performance of Pernod Ricard Travel Retail in the half year 2011/12. The brands Absolut, Chivas Regal, The Glenlivet, Martell and Jameson drive the growth in the travel retail arena, thus confirming the strength of our portfolio as well as our consistent premiumisation and innovation strategy.”
Last week, the Pernod Ricard group announced half-year sales results totalling €4,614 million (excluding tax and duties) and a sustained growth of +8%, an organic growth of +11%, with continued dynamic growth in emerging markets, up +18%, and solid growth in mature markets (+6%).
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