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Pernod hails dynamic UK growth

Published:  29 August, 2018

Pernod Ricard has revealed “strong results” for the most recent financial year, while chalking up 6% growth in the UK.

In the results for 2017/18, the French drinks giant said sales were stable across Western Europe, but picked out the UK for helping to offset difficulties in France and Spain.

In the UK, sales grew ahead of Europe (+2%), with growth driven by Absolut, Beefeater and Jameson – the latter of which achieved double-digit growth in Europe last year.

The report also drew attention to the rise of premiumisation within the company’s wine portfolio, led by Campo Viejo.

The number one Rioja brand grew 16%, driven in particular by the US and UK.

For the UK, Pernod noted “good pricing” across both wines and spirits.

Beefeater gin grew 4% group-wide, with good performances in the UK and Latin America balancing out a decline in Spain.

Spain continues to be a thorn in the side of the world number two in wines and spirits.

Sales dropped 5% over the period due to a “market slowdown”, amplified by destocking and political turmoil in Catalonia.

The company hopes to turn things around with the launch of Beefeater Pink.

Launched in March, the pink variant is expected to improve FY19’s gin performance in Spain, where gin is as popular as the UK.

Overall, FY18 totalled £8,147m (€8,987m) for Pernod Ricard.

The Americas enjoyed “continued dynamism” (+6%), with the US growing broadly in line with market, while sales continue to accelerate in Mexico and Brazil.

The period also saw a return to growth in China and India, helping to accelerate sales in Asia and rest of world by 9%.