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Pernod Ricard ‘negotiating’ price hikes post article 50
French drinks producer Pernod Ricard has confirmed it is negotiating price increases with its UK portfolio customers after Prime Minister Teresa May pulled the trigger on article 50, starting the process of the UK leaving the European Union.
According to Bloomberg, the distiller, whose brands include Absolut vodka and Martell Cognac, is preparing to raise the price of its wines and spirits in the UK to offset the devaluation of the pound, which took a nosedive following the triggering of article 50 yesterday.
Planned price hikes were reportedly announced in March 2017 ahead of an investors meeting, but were not specified.
Pernod Ricard has yet to confirm the extent of any planned price hikes, but have confirmed rises are being discussed.
Responding to speculation a spokesperson said in a statement: “This is a commercially sensitive topic and Pernod Ricard is still in the process of negotiating price increases with its customers, so the group is not providing further details on the scale and extent.”
Prices in the UK rose by 2.3% in February, the Bank of England said last week, with the UK’s impending Brexit and triggering of article 50 expected to lift prices further on goods imported from the EU.