Whisky giant banking on 'very strong' end to year after third-quarter sales blip

Pernod Ricard, the global spirits giant that owns Scotch whisky producer Chivas Brothers, is expecting “very strong” sales in the tail-end of its financial year after a third-quarter blip.

The group, which ranks as the world’s second-biggest spirits group after Diageo, said that it expected consumer demand to recover further in China following the lifting of Covid restrictions. It is also banking on more favourable comparables in the US and China, where it plans further price increases to combat rising costs. The French group reported sales of just over €2.39 billion (£2.11bn) for its financial third quarter - down 2 per cent on a year earlier. However, reported nine-month sales totalled more than €9.5bn, marking “very strong” broad-based organic growth of 8 per cent.

Pernod, whose brands include The Glenlivet and Chivas Regal whiskies, Mumm champagne, Absolut vodka and Martell cognac, said its growth over the past nine months was diversified by category. Its “strategic international brands” saw continued momentum with year-on-year growth of 7 per cent, notably with its Scotch portfolio, Jameson and Absolut. There was 10 per cent growth within the “specialty brands” category, notably Lillet, Aberlour, Altos, Malfy and Redbreast. “Strategic wines” suffered a decline of 2 per cent with softness mostly from the UK.

Chairman and chief executive Alexandre Ricard said: “Our very strong nine-month performance was broad-based and confirms the strength of our business, with resilient volumes, strong pricing and continued dynamism in all our regions and spirits categories. While the global environment remains volatile and as markets normalise, we are confident in delivering a strong performance for the full year, with very strong sales expected in our fourth quarter.”

In February, Pernod cheered forecast-beating first-half sales, helped by price hikes in key markets. It forecast strong annual revenue growth as it pushes through further price increases in the second half and drinkers trade up. Chivas Brothers’ chairman and chief executive Jean-Etienne Gourgues said at the time: “These positive results reflect the impact of our long-term portfolio elevation and premiumisation strategy. It’s a testament to the resilience of Scotch, its bright future and our continued drive to open up the category to new audiences.”