Price increases pay off for Pernod
Sales of Pernod Ricard’s major still wine brands have risen by 9 per cent worldwide.
Announcing the results for the first half of its financial year, the company said Jacob’s Creek, Montana and Campo Viejo have “returned to strong and profitable growth” as a result of “premiumisation, price increases and innovation”.
New Zealand brand Montana performed well in the UK despite a price hike, according to managing director Pierre Pringuet. “It was a bold move to increase price but the brand was definitely priced too low in the UK,” he said. Worldwide sales grew 6 per cent in value, but volumes were down 5 per cent.
Jacob’s Creek has “recovered strongly” after Pernod took the decision to focus on building value instead of seeking high volume sales as Australia faces a grape shortage, Pringuet said.
He added that the introduction of the Jacob’s Creek Three Vines range has “widened the brand’s consumer base” and invigorated the Australian wine category.
Overall, the company reported sales of €3,713 million, a rise of 5.9 per cent, adding its overall sales outlook remains “very positive”.