The French drinks giant has made its Spanish wine Campo Viejo a “star brand” with a broad marketing push, and that has led to a 45% rise in sales, while New Zealand brand Brancott Estate is up 23%.
That leaves Jacob’s Creek as the black sheep in its wine portfolio, but it said it would continue to invest in the brand in a bid to drive it back into growth.
Alexandre Ricard, the new chief executive at Pernod Ricard, told OLN: “Australia is still suffering from an unbalanced supply and demand issue – there’s more supply than demand and the segment is competitive.
Three-for-£10 means nobody is making money. We don’t play this game. Some customers might fund this themselves, but we are more into the premium game.”
Edward Mayle, finance director at Pernod Ricard UK, added: “We will continue to invest in Jacob’s Creek.
“We need to look at how the product is positioned from a price perspective. A lot of growth is driven through deep price discounting. There is a surplus of stock so it’s a price-driven volume game.
“We are continuing to invest in Jacob’s Creek as a premium Australian wine. The authenticity and provenance are elements we need to communicate to justify a premium price.”