PATRICK RICARD CALLS RETIREMENT A “NON-EVENT.”
In today’s fiscal 2006-2007 conference call, Pernod chairman Patrick Ricard called his impending retirement a “non-event.” Although prodded by investors to give a more specific timeline for his departure, Patrick would only say that he plans to retire towards the end of next year.
“My successor [Pierre Pringuet] is sitting right here next to me...it’s a non-event really, the company will remain the same...it’s a non-occurrence in the life of an organization such as ours...that’s just the way it is. I’m not going to do as some have done, i.e., ask my successor to retire before me,” he said, laughing.
With regards to the hot topic of Absolut and Stoli, Patrick remarked that “the one I prefer is the one I buy.” Good answer.
“There are pros and cons from both brands in terms of size, penetration you name it,” he pointed out. “When we acquired Stoli, Absolut was not up for grabs at the time and we’re very happy to distribute Stoli. Tomorrow we might want to stop the negotiations for Stoli but as of yet Absolut is not up for sale, it’s almost of for sale, but not quite. We will know in October...we will know when we know, what can I say?”
Patrick said the company shall find the right financing if (and when) it indeed competes for Absolut.
FROM MALIBU TO MARTELL. The brands that showed the most growth in the Americas during fiscal 2007 were Martell, Jameson, Glenlivet, Malibu and Stoli.
Martell saw 12-month depletions grow 4% in the US, with particular success in the XO and Noblige extensions. In fiscal 2007-2008, Pierre Pringuet said there is an expected decline in cognac, which likely will result in a significant price increase and volume decrease.
“In cognac, things are a little more involved...we should be able to face up to the situation and we could always restrict sales and we should experience strong growth for our aged brands,” said Patrick later in the conference.
Jameson saw depletions rise 21% in the US, while The Glenlivet and Malibu depletions both grew 9%. Pierre said Malibu’s new Tropical Banana flavor helped accelerate growth in Q-4. Stoli depletions were slightly lower at 6%, but was helped by its “very successful” ad campaign entitled “Authenticity,” said the company.
Meanwhile, Chivas showed “modest growth” in the US, while Kahlua depletions stabilized at the end of June after experiencing a -4% drop in March. Beefeater has regained footing after Pernod introduced new packaging and a new ad campaign. US depletions were down -1%, which the French company called “a sharp improvement.”
In the champagne sector, Mumm is “back with a vengeance,” said Pierre, while posting a 1% gain in 12-month depletions. Perrier-Jouët depletions rose 14%.
Sales grew 5% in the Americas for the year, but the cost of energy and alcohol adversely affected the company’s results overall. For the fiscal year, Pernod’s results were not exceptional but they were solid.
Pernod said all its former-Allied brands benefited from a substantial increase in ad spend with the relaunch of advertising & promotional campaigns. The 15 strategic brands attracted more than 70% of marketing expenditure and 90% of growth in the 2006/07 financial year.
OUTLOOK. Pernod said it anticipates another year of strong growth. So far it has seen a “good start of the financial year in July and August, in particular for our premium brands.”
“My successor [Pierre Pringuet] is sitting right here next to me...it’s a non-event really, the company will remain the same...it’s a non-occurrence in the life of an organization such as ours...that’s just the way it is. I’m not going to do as some have done, i.e., ask my successor to retire before me,” he said, laughing.
With regards to the hot topic of Absolut and Stoli, Patrick remarked that “the one I prefer is the one I buy.” Good answer.
“There are pros and cons from both brands in terms of size, penetration you name it,” he pointed out. “When we acquired Stoli, Absolut was not up for grabs at the time and we’re very happy to distribute Stoli. Tomorrow we might want to stop the negotiations for Stoli but as of yet Absolut is not up for sale, it’s almost of for sale, but not quite. We will know in October...we will know when we know, what can I say?”
Patrick said the company shall find the right financing if (and when) it indeed competes for Absolut.
FROM MALIBU TO MARTELL. The brands that showed the most growth in the Americas during fiscal 2007 were Martell, Jameson, Glenlivet, Malibu and Stoli.
Martell saw 12-month depletions grow 4% in the US, with particular success in the XO and Noblige extensions. In fiscal 2007-2008, Pierre Pringuet said there is an expected decline in cognac, which likely will result in a significant price increase and volume decrease.
“In cognac, things are a little more involved...we should be able to face up to the situation and we could always restrict sales and we should experience strong growth for our aged brands,” said Patrick later in the conference.
Jameson saw depletions rise 21% in the US, while The Glenlivet and Malibu depletions both grew 9%. Pierre said Malibu’s new Tropical Banana flavor helped accelerate growth in Q-4. Stoli depletions were slightly lower at 6%, but was helped by its “very successful” ad campaign entitled “Authenticity,” said the company.
Meanwhile, Chivas showed “modest growth” in the US, while Kahlua depletions stabilized at the end of June after experiencing a -4% drop in March. Beefeater has regained footing after Pernod introduced new packaging and a new ad campaign. US depletions were down -1%, which the French company called “a sharp improvement.”
In the champagne sector, Mumm is “back with a vengeance,” said Pierre, while posting a 1% gain in 12-month depletions. Perrier-Jouët depletions rose 14%.
Sales grew 5% in the Americas for the year, but the cost of energy and alcohol adversely affected the company’s results overall. For the fiscal year, Pernod’s results were not exceptional but they were solid.
Pernod said all its former-Allied brands benefited from a substantial increase in ad spend with the relaunch of advertising & promotional campaigns. The 15 strategic brands attracted more than 70% of marketing expenditure and 90% of growth in the 2006/07 financial year.
OUTLOOK. Pernod said it anticipates another year of strong growth. So far it has seen a “good start of the financial year in July and August, in particular for our premium brands.”
posted at 1:26 PM
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