Big brands fortify Pernod Ricard
said it expected net profits to grow by a fifth for its full year
following more strong performances from spirit brands.
Pernod chairman, Patrick Ricard, said strong sales figures for January and February meant the group anticipated 2006/07 net profits could grow by 20 per cent, excluding the effects of foreign currency exchange rates. The firm also re-iterated its interest in Sweden's state-owned vodka brand, Absolut, should the country's government decide to sell it. Pernod, like its big rival, Diageo, has increasingly benefited from growing consumer demand for premium spirit drinks. The firm reported a 7.3 per cent sales rise for the first six months of the year up 31 December, thanks to brands such as Stolichnaya vodka and Jameson Irish whiskey. So-called super premium spirits, such as Ballantine's 7 - 21 - 30 years old and The Glenlivet, also showed "vigorous growth" during the period, Pernod said. Patrick Ricard said the results "reflect the complete success of our strategy and the fulfilment of all the objectives we had set ourselves upon the acquisition of Allied Domecq". Even France, where a depressed consumer atmosphere has dented growth for several food and drink multinationals, appeared to have begun a recovery, Pernod said. A four per cent rise for the Ricard brand also enabled the group to outperform a largely flat market for aniseed drink, pastis - which has suffered due to its 'old man' image among young French drinkers.
