Pernod Ricard announces double-digit broad-based growth

By James Bayley

Published: 31 August, 2023

In its FY23 performance review, Pernod Ricard, the world's second-largest wine and spirits seller, grew net sales by 10% (€12,137m).

Asia-RoW achieved the most substantial growth in terms of regions, with a 17% increase in net sales, led by India, China and Turkey, combined with broad retail travel growth across the region.

Meanwhile, Europe increased sales by 8%, led by Spain, Germany and a positive rebound in travel retail.

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The Americas registered a modest growth of 2%, led by Mexico and low-single-digit growth in North America. Declining sales are anticipated in Q1 in the USA, although this is due to a high comparison basis, with a positive outlook expected for the year ahead.

From a category standpoint, Pernod’s strategic international brands did much of the heavy lifting led by Scotch, Martell, Jameson and Absolut, contributing to an 11% uplift in sales.

Chivas Brothers, the Pernod Ricard business dedicated to Scotch Whisky, recorded its strongest financial performance in a decade, with a 17% growth in net sales. The brand was the leading contributor to Pernod Ricard's growth in FY23.

The brand’s success was driven by its core aged-range. According to IWSR Drinks Market Analysis, Chivas Regal 18 was the leading 18-year-old blended Scotch globally, in terms of volume and value in the calendar year 2022.

Strategic local brands such as Seagram’s Indian whiskies and Olmeca were not far behind with a 10% growth in sales.

Meanwhile, speciality brands were up by 8%, courtesy of continued development led by Lillet, Aberlour, Malfy and the Spot Range

Strategic wines were comparatively lower, registering a 2% increase, mainly driven by Jacob’s Creek and Campo Viejo in the UK and North America.

Reflecting on the FY23 results Alexandre Ricard, chairman and CEO of Pernod Ricard, said: “Pernod Ricard once again delivered a very strong full-year performance, achieving double-digit broad-based growth in sales and earnings despite a volatile environment. The relevance of our growth strategy, the desirability of our brands and the unwavering commitment and agility of our teams enabled us to gain a share in most markets and strengthen pricing.

“Our transformational journey continues to accelerate through the deployment of tech and data-powered organisational, sales and marketing initiatives. We are making solid progress on our sustainability and responsibility roadmap to 2030. While the environment in FY24 remains challenging, I am confident in Pernod Ricard’s ability to deliver on its medium-term objectives.”

Chivas Brothers chairman and CEO, Jean-Etienne Gourgues, added: “The historic highs we’re seeing across our strategic brands signal the success of our premiumisation strategy which has enabled Chivas Brothers to outperform the market.

“Our highest growth of the last decade reinforces our position to shape the future of sustainable Scotch while continuing to meet demand. We have fast-tracked a number of sustainability initiatives to meet our own ambitious targets and remain committed to supporting the industry in ushering in this new era, as we demonstrated earlier this year by making our heat recovery findings open source.”

Chivas Brothers’ financial results have supported a number of significant investments, including more than £60 million in planned investment to implement heat recovery technologies and install electric boilers across viable distilleries.

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