Pernod Ricard, the wine and spirits group, has reported a 2% rise in sales across Europe for the first nine months of its financial year, and also announced plans to acquire Californian winemaker Kenwood Vineyards for an undisclosed sum.
Overall sales in the period fell 7% due to the effect of “highly unfavourable foreign exchange”. Sales for the nine months totalled €6.2bn and were “stable” excluding the impact of foreign currency exchange and the “group structure effect”.
Sales in Western Europe were “stable”, whilst in Eastern Europe they grew 9%. “The third quarter was largely impacted by unfavourable technical effects (later Easter, excise duty increases, price increases, phasing of promotions, etc.).”
There was growth of 4% in the Americans and a decline of 3% in Asia and the rest of the world. Emerging markets (-1%), excluding China, remained dynamic (+7%). Mature markets (+1%) followed the same trend as in the half-year, Pernod Ricard said.
The company said its acquisition of Kenwood Vineyards, which distributes its portfolio of premium Sonoma wines primarily in the United States and Canada, reflects both its confidence in the development of its wine portfolio and its ambitions in the United States, the largest market of the group.
The acquisition is expected to be completed before 30 June 2014.
Pierre Pringuet, chief executive of Pernod Ricard, took this opportunity to comment: “In an environment that remains challenging, our performance over the nine months was in line with the half-year and with our annual guidance. I am pleased with the acquisition of Kenwood and with the strengthening of our partnerships with our two largest US distributors, which reinforce the group’s portfolio and execution capability in the US.”
