PERNOD UPPING PRICE OF JAMESON
Pernod Ricard plans to gradually increase the price of its Jameson Irish whiskey brand on a global scale as a 25% to 35% premium to standard Scotch. Now that Pernod has Ballantine’s, a stand Scotch formerly belonging to Allied Domecq, the French company is interested in accelerating Jameson’s image as a premium brand.
Jameson has been one of the world’s fastest-growing premium spirits brands in recent years. It rose 13% to 1.95 million cases in 2005, after enduring a five-year period in which it averaged 9% growth.
Jameson, currently priced at an average of around $25 per 750-ml., sells more than 300,000 cases annually in the U.S. market and accounts for around 85% of all Irish whiskey sales in the U.S. along with it’s former stablemate Bushmills (which Pernod sold to Diageo as a part of the Allied deal).
SO CLOSE THEY CAN ALMOST SMELL IT. What else is in the mix? Pernod is reportedly just moments away from purchasing Stolichnaya from Russia’s S.P.I. group for a whopping $2 billion. The French drinks company acquired the distribution rights to Stolichnaya from Allied Domecq almost a year and a half ago, but now wants the popular vodka brand all to themselves.
"We are almost convinced that we will be able to acquire the rights to Stolichnaya," the head of Pernod’s U.S. division, Alain Barbet, told Bloomberg. "This will possibly take several weeks or months."
Why is Pernod so sure? It makes commercial sense. S.P.I. bought Stoli for about $300,000 and could now sell it for up to $2 billion.
Jameson has been one of the world’s fastest-growing premium spirits brands in recent years. It rose 13% to 1.95 million cases in 2005, after enduring a five-year period in which it averaged 9% growth.
Jameson, currently priced at an average of around $25 per 750-ml., sells more than 300,000 cases annually in the U.S. market and accounts for around 85% of all Irish whiskey sales in the U.S. along with it’s former stablemate Bushmills (which Pernod sold to Diageo as a part of the Allied deal).
SO CLOSE THEY CAN ALMOST SMELL IT. What else is in the mix? Pernod is reportedly just moments away from purchasing Stolichnaya from Russia’s S.P.I. group for a whopping $2 billion. The French drinks company acquired the distribution rights to Stolichnaya from Allied Domecq almost a year and a half ago, but now wants the popular vodka brand all to themselves.
"We are almost convinced that we will be able to acquire the rights to Stolichnaya," the head of Pernod’s U.S. division, Alain Barbet, told Bloomberg. "This will possibly take several weeks or months."
Why is Pernod so sure? It makes commercial sense. S.P.I. bought Stoli for about $300,000 and could now sell it for up to $2 billion.
posted at 1:18 PM
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