Asian affluence helps drive top-of-range whisky sales

By Scott Reid
Published on Friday 17 February 2012 00:00

Increasingly affluent Asian consumers have given a boost to Scotland’s second-biggest whisky producer, with its core brands seeing double-digit growth.

Pernod Ricard yesterday raised its full-year profit goal after reporting strong sales in the six months to the end of December.

The French group, which also owns Absolut vodka, Mumm champagne and Martell cognac, said sales of Glenlivet rose by 19 per cent, year-on-year, while Chivas Regal enjoyed a 13 per cent lift.

Last week, larger rival Diageo – maker of Johnnie Walker – pointed to a jump in sales of Scotch as a strong performance in emerging markets offset difficult trading in debt-laden Europe.

Western companies have become increasingly dependent on the rising wealth of millions of Brazilians, Chinese, Indians and Russians to maintain sales growth. Pernod, which also benefited from the early timing of the Chinese New Year and stocking ahead of a French tax rise, said the Asian region accounted for an underlying sales rise of 18 per cent.

It described a net sales rise of 2 per cent in Europe – excluding France – as “satisfying”. In its home market, the group saw sales grow by an exceptional 25 per cent due to trade buying ahead of the excise duty increase.

Overall sales in the first half reached €4.61 billion (£3.82bn), an underlying rise of 11 per cent, while operating profit grew 17 per cent to €1.38bn.

Pernod said it now targeted a rise of close to 8 per cent in underlying operating profits in the full year to June, up from previous guidance of about 6 per cent.

Chief executive Pierre Pringuet said the first-half performance had been “excellent”, adding: “We are confident but realistic about the economic climate.”

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