Price increases pay off for Pernod
Published:  25 January, 2008

Sales of Pernod Ricard’s major still wine brands have risen by 9 per cent worldwide.

Announcing the results for the first half of its financial year, the company said Jacob’s Creek, Montana and Campo Viejo have “returned to strong and profitable growth” as a result of “premiumisation, price increases and innovation”.

New Zealand brand Montana performed well in the UK despite a price hike, according to managing director Pierre Pringuet. “It was a bold move to increase price but the brand was definitely priced too low in the UK,” he said. Worldwide sales grew 6 per cent in value, but volumes were down 5 per cent.

Jacob’s Creek has “recovered strongly” after Pernod took the decision to focus on building value instead of seeking high volume sales as Australia faces a grape shortage, Pringuet said.

He added that the introduction of the Jacob’s Creek Three Vines range has “widened the brand’s consumer base” and invigorated the Australian wine category.

Overall, the company reported sales of €3,713 million, a rise of 5.9 per cent, adding its overall sales outlook remains “very positive”.




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Rosé tinted glasses

I was asked recently what I thought the biggest change had been in wine fashion in the past five years. My answer was unequivocal: sales of pink wines. From being a niche that expanded and contracted with the sunshine, rosé has subtly but steadily become a stalwart of many merchants’ ranges, with Provence firmly at the top and asked for by name.

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