Pernod Ricard turns to off-trade
Pernod Ricard is increasing its advertising and promotions budget and shifting emphasis in favour of the off-trade.
The move includes a new marketing campaign for Malibu and the first cinema advertising in the UK for Chivas Regal.
Chief executive Pierre Pringuet said: “We have reduced the level of advertising and promotions in the on-trade because fewer people are going there.
“We’ve targeted more of our budget at the brands which have the most potential for growth in the future.”
Pringuet ruled out more acquisitions for Pernod Ricard in the near future as it seeks to pay off debt following last year’s purchase of Absolut.
The company is still e300 million (£264 million) short of its e1 billion target for asset disposals, so further sales such as the recent Wild Turkey and Tia Maria deals are likely.
He added: “It’s a certainty that more consolidation will occur in the industry in the future, and one of the reasons we need to reduce the debt now is so that, if something happens in a couple of years, we will be able to participate.”
The Chivas Regal ad will be in cinemas from the end of October as part of the international Living With Chivalry campaign, which is now live in 20 countries.
The new campaign for Malibu will focus on digital media, to hit its target market of people aged 18 to mid-20s.
Pernod Ricard’s profit from recurring operations was up 21% in the year to the end of June, at €1.8 billion, including 4% organic growth and a €272 million contribution from Absolut/Vin & Sprit.