Pernod Does Well Despite Economy
Pernod’s overall third quarter earnings looked good despite softness in the U.S. Premium brand growth, strong pricing and strength in emerging markets helped Pernod rebound.
Pernod’s premiumization strategy gained momentum in the third quarter as the 15 strategic brands grew twice as fast in value (12%) as in volume (6%), which was helped by price increases and improved mix.
The French company acknowledged that the U.S. market has become “more difficult” as consumers continue to cutback spending and the U.S. dollar weakens. Beefeater, Chival Regal and Kahlua were hit the hardest in the third quarter, but those brands have struggled for awhile now. In all, North America organic growth reached 4.5%.
Depletions of Kahlua in the U.S. fell -6%. Nielsen data showed Kahlua volumes down -1%, while NABCA reported a decline of -10%. Beefeater’s depletions fell -4% in the U.S., with Nielsen down -1%. Stolichnaya’s depletions were down -1% due to price increases, the company said. Nielsen reported volume down -1%.
Spirits brands like Jameson, The Glenlivet, Malibu and Wild Turkey, which have performed well in recent years, experienced “vigorous growth” in the third quarter.
Nine month depletions for Jameson grew 23% in the U.S. Nielsen data shows Jameson growing 30%, while NABCA reported a 16% jump in volume. The Glenlivet, meanwhile, showed “continuing dynamism in the US” with depletions gaining 4%. Nielsen was up 4% and NABCA grew 2%. Malibu’s depletions increased 3%, with Nielsen up 9% and NABCA growing 15%.
Wine brands Montana, Perrier-Jouët, Mumm Napa and Campo Viejo all performed well in the U.S. Depletions of New Zealand’s Montana wine grew 19% in the third quarter. According to Nielsen, volume growth was up 28%.
Despite a softening economy, Pernod saw “continuing growth in the US, against the background of an increasingly difficult environment, due to the dynamism of premium brands.”
Pernod said very little about the Absolut acquisition in its earnings statement.
WAL-MART GAINS MORE AFFLUENT CUSTOMERS
In an analyst briefing, Eduardo Castro-Wright, CEO of Wal-Mart's U.S. division, told listeners that more affluent shoppers are going to Wal-Mart during the economic slump.
Shoppers with a household income of more than $55,000 to $70,000 are categorized by Wal-Mart as more affluent than its core customers, according to Dow Jones Newswires. Castro-Wright cited company research that showed that the number of more affluent shoppers increased 0.7% in February and was up 2.2% in March.
The company’s emphasis on low prices is keeping its core consumers loyal, while at the same time attracting more affluent shoppers looking to save. Wal-Mart also said it is in the position to keep those shoppers when the economy improves.
Wal-Mart said it will continue to focus on name brand labels despite having its own private label brands.
CRILLON IMPORTERS LAUNCHES GRANDE ABSENTE
Now that the U.S. is once again selling Absinthe, the famed “green fairy” is making a comeback. Starting this May, Crillon Importers is launching Grande Absente, Absinthe Originale in the U.S. Grande Absente is made in Province from an authentic, 148-year-old French recipe that features a full measure of the legendary botanical wormwood and other regional botanicals. The new absinthe is 138 proof and will be available nationwide for approximately $70 for a 750 ml bottle packaged with a complimentary gold-plated absinthe spoon.
“It’s a myth and a crutch that absinthe is supposed to taste bad,” said Jim Nikola, senior vice president of marketing, Crillon Importers.
I WILL BE OUT OF TOWN and out of pocket the rest of the week. See you Monday!
Until tomorrow, Megan
“It is absurd to divide people into good and bad. People are either charming or tedious.”
-Oscar Wilde
--------- Sell Day Calendar ----------
Today's Sell Day: 22
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
Pernod’s premiumization strategy gained momentum in the third quarter as the 15 strategic brands grew twice as fast in value (12%) as in volume (6%), which was helped by price increases and improved mix.
The French company acknowledged that the U.S. market has become “more difficult” as consumers continue to cutback spending and the U.S. dollar weakens. Beefeater, Chival Regal and Kahlua were hit the hardest in the third quarter, but those brands have struggled for awhile now. In all, North America organic growth reached 4.5%.
Depletions of Kahlua in the U.S. fell -6%. Nielsen data showed Kahlua volumes down -1%, while NABCA reported a decline of -10%. Beefeater’s depletions fell -4% in the U.S., with Nielsen down -1%. Stolichnaya’s depletions were down -1% due to price increases, the company said. Nielsen reported volume down -1%.
Spirits brands like Jameson, The Glenlivet, Malibu and Wild Turkey, which have performed well in recent years, experienced “vigorous growth” in the third quarter.
Nine month depletions for Jameson grew 23% in the U.S. Nielsen data shows Jameson growing 30%, while NABCA reported a 16% jump in volume. The Glenlivet, meanwhile, showed “continuing dynamism in the US” with depletions gaining 4%. Nielsen was up 4% and NABCA grew 2%. Malibu’s depletions increased 3%, with Nielsen up 9% and NABCA growing 15%.
Wine brands Montana, Perrier-Jouët, Mumm Napa and Campo Viejo all performed well in the U.S. Depletions of New Zealand’s Montana wine grew 19% in the third quarter. According to Nielsen, volume growth was up 28%.
Despite a softening economy, Pernod saw “continuing growth in the US, against the background of an increasingly difficult environment, due to the dynamism of premium brands.”
Pernod said very little about the Absolut acquisition in its earnings statement.
WAL-MART GAINS MORE AFFLUENT CUSTOMERS
In an analyst briefing, Eduardo Castro-Wright, CEO of Wal-Mart's U.S. division, told listeners that more affluent shoppers are going to Wal-Mart during the economic slump.
Shoppers with a household income of more than $55,000 to $70,000 are categorized by Wal-Mart as more affluent than its core customers, according to Dow Jones Newswires. Castro-Wright cited company research that showed that the number of more affluent shoppers increased 0.7% in February and was up 2.2% in March.
The company’s emphasis on low prices is keeping its core consumers loyal, while at the same time attracting more affluent shoppers looking to save. Wal-Mart also said it is in the position to keep those shoppers when the economy improves.
Wal-Mart said it will continue to focus on name brand labels despite having its own private label brands.
CRILLON IMPORTERS LAUNCHES GRANDE ABSENTE
Now that the U.S. is once again selling Absinthe, the famed “green fairy” is making a comeback. Starting this May, Crillon Importers is launching Grande Absente, Absinthe Originale in the U.S. Grande Absente is made in Province from an authentic, 148-year-old French recipe that features a full measure of the legendary botanical wormwood and other regional botanicals. The new absinthe is 138 proof and will be available nationwide for approximately $70 for a 750 ml bottle packaged with a complimentary gold-plated absinthe spoon.
“It’s a myth and a crutch that absinthe is supposed to taste bad,” said Jim Nikola, senior vice president of marketing, Crillon Importers.
I WILL BE OUT OF TOWN and out of pocket the rest of the week. See you Monday!
Until tomorrow, Megan
“It is absurd to divide people into good and bad. People are either charming or tedious.”
-Oscar Wilde
--------- Sell Day Calendar ----------
Today's Sell Day: 22
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 12:37 PM
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