The performance of our key geographic zones

NORTH AMERICA: Dynamic performance in our #1 market

Our continued premiumisation and creative ways of connecting with customers contributed to drive sales growth in the United States in 2017 (+4%).

Jameson remained the primary growth engine with double-digit performance, at +14%, powered by the momentum of its core range and the expansion of Jameson Caskmates (+87%) – the beer-barrel-aged Irish whiskey. The launch of Martell’s VS Distillery and Blue Swift cognacs and continued rollout of Absolut Lime were also key success factors.

Other Brands were equally impressive, increasing their contribution to overall sales. House of Tequila brands Altos and super-premium Avión recorded strong results, as did the leading mezcal Del Maguey Single Village Estate. Malibu outperformed in its category, boosted notably by its #BecauseSummer campaign. Our wine and champagne teams also found creative new ways to resonate with consumers, resulting in an exceptional year for Campo Viejo and Maison Mumm.

In Canada, the overall results were relatively stable. Nevertheless, strong performances were achieved on priority Brands including Jameson, The Glenlivet and the wine portfolio – notably Jacob’s Creek.

Now, more than ever, going the Extra Mile at Pernod Ricard means developing innovations that capitalise on the lifestyle trends of today’s consumers. Our creative strategies, sustained by a commitment to excellence at every point along the way, from product creation to the consumer’s glass, are proving their value in the world’s largest spirits market.

+4%
SALES GROWTH IN THE UNITED STATES
+47%
GROWTH FROM INNOVATION
+87%
INCREASE IN JAMESON CASKMATES NET SALES

EMEA & LATAM: Momentum continues to build in both mature and emerging markets

The EMEA & LATAM region showed robust growth last year thanks to tight resource management, strict risk monitoring and a focused investment in Strategic International Brands.

All three regions – Europe, Africa and Latin America – also benefited from leveraging Group accelerators such as innovation with new product launches, improved decision-making processes, e-commerce and other new business opportunities.

In emerging markets (LATAM, Africa and Eastern Europe) effective resource allocation was a key factor driving the strong contribution over the past year. In Brazil, this meant building activities behind key Brands in order to gain market share in a context that, while improving, remains uncertain. In Mexico the disposal of local Brands made it possible to refocus on International Brands and stabilise market share.

Strong sales of local Brands such as Ararat, an Armenian brandy, and a continued focus on other premium+ Brands, helped drive double-digit growth in Russia. Premium+ brands, backed by pan-African marketing campaigns, were also responsible for dynamic growth in sub-Saharan Africa. In Turkey, we consolidated our leadership position in imported spirits and grew our Growth Relays, in particular, Absolut and Ballantine’s.

In Europe, the launch of Beefeater Pink should help offset a market slowdown in Spain, while in Germany, dynamic growth in Lillet and Jameson set the pace in a market that is increasingly geared towards premium brands. The UK performed well thanks to a focus on key Brands such as Absolut, Jameson and Beefeater, combined with the growth of Campo Viejo, price increases for Jacob’s Creek and overall positive pricing across Wines & Spirits.

+18%
INCREASE OF JAMESON NET SALES IN RUSSIA
+59%
GROWTH OF LILLET NET SALES IN GERMANY
+38%
INCREASE OF ADVERTISING & PROMOTION INVESTMENTS IN MEXICO

ASIA: Strong return to growth

Double-digit growth in Asia over the 2017/2018 fiscal year clearly demonstrates the success of our mission to win over middle-income to affluent consumers.

Enthusiastic consumer response to a broad spectrum of innovative initiatives tied to new trends and opportunities in this fast-evolving region has strengthened our performance, particularly in China (+17%) and in India (+14%).

A wide variety of events in China enhanced exposure to Pernod Ricard Brands, inspiring consumers to find more ways to create new moments of conviviality. Prestige nights and evening dining events organised in cities across the country accelerated the portfolio, with Martell a noteworthy performer and Chivas also returning to growth. For Millennials, a series of “fun nights out” enhanced visibility of aspirational Premium Brands such as Absolut and Ballantine’s – strongly empowered by the digital ecosystem created in partnership with Tencent.

Sales in India rebounded strongly after a difficult year in 2016/2017 caused by an adverse regulatory environment. There was a solid performance across the portfolio, with Seagram’s whiskies, India’s leading premium Western spirits, showing the biggest momentum.

Across Asia, a focus on locally relevant innovations is boosting results, along with the integration of local spirit and wine brands into the portfolio. These include Helan Mountain wines in China and a new joint venture in Myanmar to produce whisky locally. In the Korean market, the launch of the low ABV1 whiskies Imperial 35 and The Smooth contributed to sales.

Diversification, geographical expansion, premiumisation and, above all, innovation carefully crafted to match the culture and the aspirations of the local market are proving to be winning strategies in this dynamic region.

(1) Alcohol by volume.

1.7BN
PROJECTED MIDDLE-CLASS AND AFFLUENT CONSUMER POPULATION2 BY 2025 IN ASIA (+50% VS 2015)
45%
VALUE MARKET SHARE IN INDIA
+13%
INCREASE IN MARTELL SALES IN ASIA
(2) Defined by household disposable income levels.

GLOBAL TRAVEL RETAIL: Positive momentum and healthy growth

Global Travel Retail is the number 2 profit contributor to the Group and a strategic channel that continues to see positive momentum with healthy growth in passenger traffic and retail sales.

The channel provides our Brands a unique platform to engage with a premium audience of 3.3 billion travellers in an upscale environment. The newly formed Global Travel Retail organisation addresses the need for an organisation that is both consumer- and customer-oriented and that can engage with large global customers whilst still retaining our unique strength on the ground with local customers. It has seen healthy growth across all regions and key Strategic Brands. Global Travel Retail continues to focus on the key pillars of value growth, innovation and digital acceleration through the travel trail. This year saw the very successful global activation of the Martell Chinese New Year programme, as well as innovations on Ballantine’s prestige such as the Ballantine’s 30 Cask Edition and Ballantine’s 17 Seoul edition.

3.3BN
INTERNATIONAL TRAVELERS
22.3%
VALUE MARKET SHARE
+7%
NET SALES
Source : IWSR 2017.
Discover our 2017-2018 Integrated Annual Report

Excessive drinking is dangerous for the health; alcoholic beverages should be consumed with moderation.

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