Pernod Ricard hit by China slowdown

Slowed growth in China has hit Pernod Ricard as the company reported a slight sales decline for the first quarter of 2013/14.

pernod ricardNet sales for Pernod Ricard totalled €2,013 million for the first three months of this financial year, an organic decline of -1%.

The company blamed high comparatives for the first quarter of last year as well as the slowdown in emerging markets and an “unfavourable mix” for the decline. The poor results led the firm to revise down its target for full-year growth after previously settings a goal of 6% .

Pierre Pringuet, Pernod Ricard’s chief executive officer, said: “Our first quarter was adversely affected by the slowdown of emerging markets and unfavourable technical effects. However, we remain confident in the diversity of our portfolio and the strength of our distribution network. We anticipate organic growth in full-year profit from recurring operations between +4% and +5%.”

Although Pernod’s “Top 14” posted a -5% decline, particularly due to a fall in sales for Martell and Ballantine’s in Asia, there was some positives with the group’s Premium Wines increasing 1%, driven by Brancott Estate and Campo Viejo.

The Chinese slowdown has largely come about as a result of the government scaling back government-sponsored banquets and gift giving, which had pushed up sales of high-end spirits in the country. The cutbacks came as the government responded to allegations of corruption and overt displays of wealth among state officials.

Pernod Ricard has previously said that it expects the Chinese market to start growing again in early 2014, although the Wall Street Journal reported that Remy Cointreau CEO Frederic Pflanz said last week that he didn’t know yet when the situation would change.

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Your email address will not be published.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

International Sales Manager

Crush Wines Ltd
Home based/Wiltshire office, UK

Head of Marketing

Amathus Drinks Plc
London, UK

Sales Representative - Private Customers

Corney and Barrow
Central Hong Kong, HK

Export Manager UK On Trade

AdVini
Home based in London or the South East, GB

Global Head of Marketing

ATOM Brands
Tunbridge Wells, GB

Sales Executive

Three Wine Men
Home-based but must be available to travel throughout the UK with frequent trips to London, GB

Senior Sales Operations Executive

Enotria&Coe
Park Royal, London, GB

Sales Administrator

Les Caves de Pyrène
Guildford, UK

On Trade & Corporate Accounts Manager

The Champagne Company
Birmingham, UK

Customer Service Assistant

The Champagne Company
Birmingham, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

The Global Pinot Noir Masters 2018

Deadline : 31st January 2018

The Global Organic Masters 2018

Deadline : 12th February 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more