UK. Pernod Ricard World Trade (PRWT), the second largest drinks supplier in duty free and travel retail globally (source: DFIC 2003) has revealed a +11% increase in sales volume in 2003, despite all the adverse conditions suffered by the market.
Sales of Jameson increased by +23%, Havana Club saw an uplift of +20%, and Royal Salute’s sales were up +15%, while Jacob’s Creek more than doubled its sales by volume versus 2002. Sales of Chivas Regal, one of the premium Scotch whisky sector’s star brands, increased by +3%.
PRWT said the visibility of the group’s brands from the expanded portfolio was a key factor in developing this market. Merchandising and instore display, new product development and award-winning promotional campaigns (for Jameson and The Glenlivet) all played a fundamental part in raising brand awareness and driving sales in the year.
Pernod Ricard World Trade chairman and CEO Gilles Cambournac commented: “We are delighted with these results. This was a particularly difficult year, and these figures show that we were successful in both keeping our brands fresh in the travellers’ minds, and encouraging purchase. We now look forward to increased growth in 2004.”
Looking at the Pernod Ricard Group as whole, which announced 2003 fiscal year results today, net profits improved +12.3% to € 464 million (US$573 million). Wines and spirits sales amounted to € 3.4 billion (US$4.2 billion) reflecting a significant negative currency effect (-8.3%) and excellent organic growth (+ 8.1%), which arose from good results achieved by most brands, both global and local.
Wines and spirits operating profit improved to € 737 million (US$910 million), despite a significant negative currency effect of € 83 million, increasing the operating profit margin to 21.5% from 20.8% for 2002. On a constant exchange rate basis, operating profit improved by 15.5%.
