Pernod Ricard ups marketing spend
Pernod Ricard, owner of Absolut Vodka, Chivas Regal and Jameson, plans “strong” marketing investment next year following a 13% profit increase in its last financial year.
The drinks company says net profit was €945m (£830m) in the 12 months to 30 June, up from €840m (£735m) a year ago.
Sales increased 9% to €7.2bn (£6.3bn), driven by the integration of Absolut-owner Vin & Spirit, which the group bought last summer for €5.63bn.
Marketing spend increased 5% to € 1.4bn (£1.2bn).
The group says its brands “will benefit from strong advertising and promotion expenditures in the next financial year”.
New marketing initiatives planned include development of digital marketing for its core brands and campaigns for Absolut 2.0, Malibu, and Jameson.
The company says the last financial year was “satisfactory” despite a “particularly difficult environment”, adding it starts the new financial year with “confidence and determination”.
The drinks firm has been seeking ways to reduce its debt this year. In July, it sold the Tia Maria liqueur brand to Saronno for €125m (£107m), while In April, the company offloaded bourbon brand Wild Turkey to Italy’s Campari for $575 (£496m).
