Pernod Ricard targets on-trade

09 September, 2013

Pernod Ricard UK is putting the on-trade at the heart of its strategy for the next two years, managing director Denis O’Flynn has said.

O’Flynn said the decision to reduce focus on the take-home market was to hone in on what he called the on-trade “opportunity”.

He said: “The on-trade is the area we will be concentrating on over the next number of months. There is a huge opportunity there with brands like Chivas Regal, Jameson and Absolut, and that is where we are going to be focusing our resource.”

Pernod Ricard UK announced a “good performance” in its 2012-13 fiscal year, with particular growth in Campo Viejo, Chivas and Jameson and increased wine sales overall.

O’Flynn said the company’s strategy of premiumisation and chasing value over volume was paying off. “The premiumisation of wines has come through very strongly,” he said. “Our pricing is at a 1.7% premium to the market, our average retail price is £6.34 versus £5.10.”

Sales of Jacob’s Creek grew 2% making it the top-selling Australian wine over £6. Brancott Estate grew 15% and Campo Viejo 24%.

O’Flynn said a “brave” decision taken a few years ago to raise the price of Jacob’s Creek had stood the brand in good stead compared to other Australian wine brands.

“When a difficult choice has to be made we will make it and we will continue with our premiumisation,” he said.

Malibu had a ”challenging” year, but the company said a boost to digital and experiential marketing had improved the brand’s sales this summer.

Across its international business, Pernod Ricard reported a “solid performance”, with full-year sales up 4% to €8.6 billion.

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