Pernod prepares for Champagne rebound

21st March, 2014 by Patrick Schmitt

A slowdown in Champagne sales in Europe hasn’t dampened Pernod Ricard’s belief in the potential for profitable growth for Mumm and Perrier-Jouët.

Perrier Jouet Nuit Blanche

In September 2013 Perrier-Jouët launched Nuit Blanche – a sec style Champagne for the US market

During a discussion with the drinks business in late January, Frantz Hotton, marketing director for the pair of Champagne brands at Pernod, said that “the short term situation would have no impact on our long term policy”.

Referring in particular to a 2% decline in volume sales for Mumm (and 1% drop in value) during the last six months of 2013, he said that the brand had suffered slightly because it had avoided heavy discounting to boost its performance in European retailers.

“It’s a question of policy, we did not want to go further in our promotions and defend volumes at any cost,” he told db.

Instead, he said that Pernod Ricard had put greater emphasis on the Mumm rosé, which he said had jumped by 49% in volume sales last year.

He also blamed the slight dip in sales of Mumm overall on the fact “it is a European brand” and consequently dependent on recessionary markets for the majority of its sales, particularly France – Mumm sells almost 50% of its volumes in the troubled domestic market.

On the other hand, he described Perrier-Jouët as “mainly an export brand” with a particular following in the more buoyant Champagne markets of the US and Japan.

As a result, Perrier-Jouët enjoyed a 1% volume increase and 9% rise in value during the last six months of 2013.

Explaining the increase in value sales, Hotton said Pernod had put greater emphasis on the brand’s prestige cuvée.

“We have been active on Belle Epoque, and sales have risen 8% on this globally,” he said, adding, “We are focusing on value.”

Speaking generally about Pernod’s approach to the Champagne business, he said wine and spirits group was planning for future growth.

“We intend to be fairly aggressive in our long term view and use the crisis period to get into some markets and prepare our growth.”

Continuing he said, “These days we are building some sustainable business and expect to expand in emerging markets, so we are in a position to be very dynamic when the global market is rebounding, and we are very confident that it will rebound.”

As for fueling this expansion, Hotton assured db that Pernod would have the supply for future growth.

“As we have done with Cognac, we will manage to get the supplies we need in Champagne, and we are preparing the rebound on the supply side,” he explained.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Experienced Administrator

The Drinks Business
Central London, UK

Sales Executive (London – Craft Spirits)

Bimber Distillery
London, UK

2 x Buying Assistants

Berry Bros. & Rudd
Battersea and Basingstoke, UK

Temporary Christmas Sales Support - Wines & Spirits

Harrods
Knighsbridge, London, UK

Head of Wholesale

Hispamerchants Ltd
London, UK

Sales Manager

Hispamerchants Ltd
London, UK

National Sales Manager

Maverick Drinks
Field based, UK

Regional Sales Executive

EWGA
Gloucestershire, UK

The World Bulk Wine Exhibition

Amsterdam,Netherlands
20th Nov 2017

The Drinks Business Green Awards 2017

London,United Kingdom
20th Nov 2017

The Global Spirits Masters Lunch

London,United Kingdom
1st Dec 2017
Click to view more

Green Awards 2017

Deadline : 25th October 2017

The Global Riesling Masters 2017

Deadline : 30th October 2017

Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more