Jameson's popularity in the US boosts Pernod stable

JAMESON HAS held its place as one of Pernod Ricard’s fastest growing brands, with the whiskey’s annual sales volumes jumping by 17 per cent on the back of its continuing success in the US.

Pernod Ricard – the world’s second largest spirits group after Diageo – said Jameson sales had passed the three million case milestone in late 2010, and reached 3.4 million by the end of June.

Whereas the French company’s overall resilience – global organic sales grew by 7 per cent in 2010/11 – was underpinned by demand in emerging economies, Jameson’s success was largely due to its popularity in the US, where it sold one million cases and saw double-digit growth in all 50 states.

Of 120 markets in which Jameson – part of the Irish Distillers Group – is sold around the world, more than 40 achieved double-digit growth in the past year, making it the fastest growing of Pernod’s drinks after Royal Salute, a high-end brand that sells in small volumes.

Pernod Ricard’s stable of brands includes Martell cognac; Absolut vodka; Scotches Chivas, Ballantine’s and Glenlivet; and Perrier-Jouët champagne.

Alexandre Ricard, chairman and chief executive of Irish Distillers, said Jameson’s success was “one of the company’s great success stories”.

He said the imminent expansion of its maturation and warehousing capacity at Dungourney, Co Cork, and plans to double production at its Midleton distillery would “secure Jameson’s continued growth into the future”.

Pernod Ricard’s annual results, published in Paris yesterday, show growth in mature markets was flat in the year to June 30th – an improvement on last year’s declines of as much as 5 per cent in Europe. However, resilient sales of premium spirits in emerging economies such as China, India and Vietnam contributed to an underlying 8 per cent rise in profit from recurring operations to €1.90 billion.

Pernod’s underlying group sales rose 7 per cent to €7.64 billion, lifted by a 15 per cent gain in Asia.

In Ireland, overall sales declined by 1 per cent, and Irish Distillers said its results reflected the continuing shift from on-trade (pubs, bars and the hospitality sector) to major off-trade outlets, as well as “very depressed consumer confidence”.

However in Paris, Pernod chief executive Pierre Pringuet said the pick-up in Irish sales (down just 1 per cent compared to 6 per cent in 2009/10) indicated that “Ireland looks like it’s emerging from its recession”.

Both Jameson and Powers Gold Label, supported by advertising and promotion campaigns, recorded double-digit growth in Ireland.

Overall, Pernod’s sales fell by 2 per cent in Europe, primarily due to a 33 per cent fall in Greece and a 5 per cent fall in Spain – one of its biggest markets.