Irish market weak for Pernod Ricard

Sales of Jameson whiskey rose 10 per cent worldwide during 2004, Pernod Ricard revealed yesterday. However, the Irish spirits market was described by group chairman and chief executive Patrick Ricard as "weak".

"Interim" results for the first 12 months of an extended 18-month 2004-2005 fiscal period to June 30th next saw operating profits up 9.6 per cent to €743 million.

The group owns Irish Distillers but the accounts are consolidated and there were no figures available for the Irish Distillers' performance.

However, Jameson whiskey is one of the group's leading strategic brands and its sales were up 10 per cent in 2004, the group announced. The brand was the second-strongest performer in the group's portfolio in 2004. The top performing brand, Chivas, grew by 12 per cent.

A 42 per cent increase in excise duty on spirits in the 2003 budget is being blamed for the difficulties in the Irish market.

Irish spirit sales fell around 18 per cent in 2003, although Pernod Ricard is understood to have outperformed.

However, it is understood sales have not yet fully recovered the lost ground.

Mr Ricard said pastis in France had not performed well and that other weak markets included Ireland, which was "still hit hard" by the excise duty increases.

Group net profit was up 5.1 per cent, to €487 million.

"These are good results," said Mr Ricard.

"The factors which have enabled us to achieve them, like the development of our premium brands and our leading position in high potential markets, are in place and growing the business. Thus I look forward to the future with confidence."