The global domination of Scotch whisky we have almost come to expect in recent years has been looking a little frayed around the edges of late.
A surprisingly strong period during coronavirus lockdowns, when many distillers performed well online and in the off-trade, was followed by an upsurge in sales when bars, hotels and restaurants and global travel began to reopen. But more recently the giants of the whisky world have found the going a little more tough.
Sales in the all-important Chinese market have stalled as growth has weakened in the world’s second biggest economy, and there have been challenges in the US and Latin America, where slowing sales have been highlighted by major players such as Diageo. Compared with resurgent sales in the immediate post-Covid period, more recent figures have looked a lot less impressive.
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Pernod Ricard, the Paris-based owner of Chivas Brothers, highlighted challenges in the US and China as it reported its results for the third quarter today.
The drinks giant, which makes big-selling blends Chivas Regal and Ballantine's, said its performance was “robust” as organic sales were stable at €2.35 billion for the period and were down by 2% at €8.94bn for the first nine months of its financial year.
Its statement showed there were sharp declines in the third quarter in China, where the company highlighted the impact of a “difficult market environment” as sales fell by 12%, and the US, where sales were down 11% “as trade inventory levels are adjusted”.
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As such, the company will have been glad for much stronger performances in other key markets, including India, Japan, Germany, and Turkey, as well as the global travel retail market, to cushion the blow.
Pernod said that, given its performance so far, it “remains confident in its medium-term financial framework of 4% to 7% top line growth, aiming for the upper end of the range”.
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