Irish Distillers has reported strong growth across its whiskey portfolio in the first half of its financial year. Sales of Jameson rose 11 per cent in the six months to December 31st, with more than 6.4 million cases sold over the six months. In the US, it sold 2.5 million cases, a rise of 8 per cent in volume.
The drinks company’s prestige portfolio rose 26 per cent in volume over the six months, with the Redbreast Family increasing volumes 20 per cent, the Spot Range up 38 per cent and Midleton Very Rare increasing volumes 45 per cent.
Powers recorded volume growth of 15 per cent, with sales up 68 per cent in the US as a new import and distribution agreement with Lafayette Imports supported growth.
“Today’s results demonstrate the strength of our portfolio of Irish whiskeys,” said Nodjame Fouad, chairwoman and CEO at Irish Distillers. “As we look to the next six months of our financial year, we are encouraged by our half year results.”
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Parent company Pernod Ricard said first-half sales rose more than expected as US drinkers kept spending on spirits and China reopened. Sales rose 12 per cent on an organic basis to €7.1 billion in the six months through December, the maker of Absolut vodka and Chivas Regal said Thursday. Analysts had expected €6.9 billion.
Distillers have been raising prices to counter higher input costs even as they risk consumers trading down to less premium brands. Fellow French spirits maker Remy Cointreau said in January that cognac consumption in the US “normalised” in its most recent quarter, while shipments to China surged.
The Pernod results suggest continued US demand for premium spirits despite high inflation and weakening economic growth. At the same time, distillers expect the key Chinese market to pick up as the country reopens following the end of Covid-Zero policies.
“Our first half performance was very strong, marked by broad-based and diversified growth across all regions and categories, chairman and chief executive Alexandre Ricard said in a statement.
Mr Ricard said he expects “dynamic growth to continue through 2023, though in a “normalising environment”.
Recurring operating income rose to €2.42 billion, ahead of analysts’ estimates.
The company confirmed it would buy back about €750 million worth of its stock in 2023 with an imminent €300 million repurchase. – Additional reporting: Bloomberg
