Pernod Ricard hit by China slowdown

24th October, 2013 by Andy Young

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Your email address will not be published.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 *

Subscribe to our newsletters

Job vacancies

Brand Ambassador – Santa Rita Estates

Santa Rita Estates
London or Hertfordshire but with flexibility to travel, UK

Sales Executive - Wine and Spirits Awards

The Drinks Business
Central London, UK

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Bibendum PLB
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

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

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more