The growth of at-home mixology (read: bartending for your friends and family) has presented a new opportunity for beverage giants like Pernod Ricard. Its latest earnings report showed organic growth of 3% year over year, up from 2% growth from 2013 to 2014.
CFO Gilles Bogaert told Yahoo Finance that the United States is a big part of that growth and accounted for 17% of the company’s net sales, making it the number one liquor market for Pernod Ricard.
Whiskey continues to be the “it” alcohol. “Globally whiskey is quite important for Pernod Ricard. Scotch and Irish whiskey represent 45% of the group's net sales. And in the U.S. in particular, Jameson is growing very fast. Double digits.”
Bogaert says a mix of big-name brands, including the aforementioned Jameson, Absolut, and others—along with “niche” names such as Tequila Avión and Monkey 47 Gin—helps them serve different consumers while growing sales.
The space between is being filled, he says, with innovations in brands. Last year, for example, the company released Jameson’s Caskmates, a whiskey aged in old beer barrels. “It is part of the newness we need to bring around the brand,” Bogaert says. He says the company takes care to innovate “with substance, not doing just a new flavor, but bringing something really new and disruptive.”
Pernod is also working to refresh its image. Millennials are a big part of their consumer base, which has forced the company to up its game in digital and social media.
“The industry in the past tended to be a bit conservative,” Bogaert admits, “and clearly in the past few years we have speeded up on the innovation side. They are digitally connected so we need to be strong in digital ... It’s a strong and powerful way to engage our consumers, make them loyal to our brands, speak about our brands.”
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