Pernod Ricard says consumer spending is recovering

Pernod Ricard, which owns the Absolut and Jameson brands, says it exceeded its targets thanks to a recovery in consumer spending and its focus on premium brands.

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The drinks maker reported an 8% increase in sales to €7.6bn (£6.7bn) for the year ending 30 June.

Net profit for the year increased 10% to €1.04bn (£0.9bn), exceeding €1bn (£0.9bn) for the first time.

The drinks maker says its top 14 brands, which represent 58% of sales, grew 6% in volume and 10% in value.

The company increased its spend on advertising and promotion by 11% to €1.4bn, during the period to account for 18.9% of sales.

More than three quarters (76%) of the marketing investment was dedicated to the top 14 brands, which also include Chivas and Havana Club rum.

Pierre Pringuet, CEO of Pernod Ricard, says: “Our remarkable performance over the 2010/11 financial year demonstrated the relevance of our strategy and of our decentralised model. For 2011/12 the beginning of the financial year confirms the resilience of our markets. We will continue to grow, by capitalising on the strength of our portfolio of brands, the quality of our distribution network and the powerful leverage of emerging markets.”

Earlier this year the drinks company launched a multi-brand push for its premium spirits brands to encourage consumers to upgrade from standard spirits.

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