Pernod Ricard to boost ad spend for priority brands including Absolut and Jameson
Drinks giant Pernod Ricard is to increase its advertising and promotional spend to support its 14 top priority brands such as Absolut and Jameson, as it saw sales rise by 2 per cent to just over €2bn in the first quarter.
The company benefitted from a 17 per cent surge in sales of its whisky brand The Glenlivet, which helped Pernod Ricard return to growth, alongside the improved trend of the Martell whisky brand; a new blend celebrating the brand’s 300th anniversary is planned for release in 2015.
Despite the positive growth, sales in Europe fell by 1 per cent due to a decline in Germany, Poland and travel retail.
Pierre Pringuet, chief executive, stated: “Pernod Ricard’s return to growth in the first quarter illustrates the group’s resilience in a difficult context. We are confident in the strength of our portfolio and distribution network. The roll-out of project Allegro will contribute to strengthening our operational efficiency.”
Pernod Ricard announced project Allegro earlier this year, and the initiative will see its marketing and commercial development teams merged into one. It is hoped project Allegro will afford Pernod Ricard with €150m of savings over a three year period.