PERNOD SHOWS BOOMING SALES THANKS TO ALLIED

Pernod Ricard has seen sales soar by 68% since its takeover of Allied Domecq brands last year, 61% stemming from the acquisition. For the year ending in June, organic growth was up 4.3% with a 5.1% jump in the 4th quarter.

Pernod’s original key brands continued their rapid growth, jumping 2% in volume and 7% in sales. Jameson grew 12% by volume and 15% in sales, with particularly strong growth in the U.S. Chivas, Martell and Glenlivet also experienced double digit growth, with Chivas achieving record sales by selling just short of 4 million cases.

The company reported that sales more than doubled in the U.S. following the integration of Allied Domecq, especially thanks to the spirits portfolio. Jameson grew 21% in the U.S. where Glenlivet also had a strong presence.

Pernod reported that the integration of Allied had gone more smoothly than originally anticipated, leading a reduction of nearly 40% in debt. Despite the integration, some brands maintained their positive trends, particularly Stolichnaya (16%), Montana (4%) and Malibu (2%). However, Ballantines (-12%), Beefeater (-6%) and Kahlua (-8%), were hurt the worst by destocking.