Pernod Ricard reports strong results for 2020/21

Pernod Ricard executives struck an optimistic tone for the coming months after revealing strong growth for the company's spirits brands, despite hits to on-trade and travel retail business due to the Covid-19 pandemic.

Chivas Brothers, the company's Scotch whisky arm, saw global sales rise by 6 per cent - almost a return to 2019's levels of growth following a slump of 11 per cent in 2020. The growth was boosted by strong domestic performance, which Chivas Brothers said was expanding beyond pre-pandemic levels and helped to offset losses from travel retail. 

Its main brands - Chivas, Ballantine's, The Glenlivet and Royal Salute - all saw strong growth outside travel retail, most notably Royal Salute which saw non-travel retail sales rise by almost a third.

Nick Blacknell, Chivas Brothers global marketing director, detailed schemes that the business would be working on into the 2021/22 fiscal year including: Chivas Venutre, a concept launched in South Africa and set for a wider roll-out; a collaboration with a global fashion brand set to be announced in October 2021; and an increasing brand focus on longer, fresher and lighter drinks to appeal to a younger, more 'modern' consumer base.

Jean-Etienne Gourgues, who joined Chivas Brothers as chairman and CEO in July from Pernod Ricard China, also outlined some of the business's sustainability initiatives including investment in energy-saving MVR technology for pot stills (already in use at Glentauchers) and a transition to biofuels (underway at Braeval).

Pernod Ricard's Gin Hub saw sales growth of four per cent in the financial year, driven by double-digit growth in the key markets of the USA, Brazil and China. Its super-premium brands, including Plymouth, Malfy, Monkey 47 and recent acquisition Ki No Bi, performed well as consumers looked to trade up their at-home drinking experiences.

The Gin Hub's flagship brand, Beefeater, was heavily hit by on-trade closures in Spain - its biggest market. However, Gin Hub managing director Louise Ryan said the brand had weathered the storm globally and had forged ahead with new product development including lower-ABV products Beefeater Light, being trialled in Spain and Portugal, and Beefeater Botanics, currently on a pilot in Canada and Brazil.

2 September 2021 - Bethany Whymark