Sales of Jameson Irish whiskey continued to grow in China and outperform competitor brands in the US, despite a “subdued” spirits market and challenging macroeconomic conditions in the world’s largest economies, drinks giant Pernod Ricard said on Thursday.
The French-listed group, which slashed its forecasts earlier this year due to the impact of US president Donald Trump’s tariff agenda, reported a 7.6 per cent decline in organic sales in the three months to the end of September, the first quarter of its new financial year.
The group, which owns Irish Distillers, said sales across its portfolio of brands slumped a further 16 per cent over the period and 27 per cent in China.
However, the Absolut vodka-owner said it expects to see “improving trends” in sales in its 2026 financial year, particularly in the second half.
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Pernod and its European rivals were among the first to be hit by rising global trade tensions, after China suspended duty-free sales of Cognac last year in retaliation for European Union tariffs on Chinese electric vehicles. Pernod also faces US tariffs on its exports from the EU and the UK.
In the US, it said the sales were impacted by an unwinding of its inventories in the first quarter, after it stockpiled goods proactively in advance of the unveiling of Mr Trump’s trade agenda.
In China, Pernod’s weakest market, sales contracted amid a “challenging macroeconomic environment” and soft consumer demand, Pernod Ricard said.
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Premium brands – “notably Jameson”, which also outperformed competitors in the US – continued to grow in China.
Pernod Ricard restated its goal of finding €1 billion in savings over the next three years.
The group, which paused production at Irish Distillers’ Midleton, Co Cork, hub from April through the summer months, is also reorganising its business to cut costs and reduce its headcount amid a slump in alcohol sales globally over the past year or so.
The Financial Times reported in June that company leaders told employees that the group would divide itself into two units. One unit will comprise its whiskey, champagne and cognac brands, while the second will include other spirits and aperitifs.
Other drinks makers like Guinness owner Diageo and Moet Hennessy owner LVHM have also unveiled cost-cutting plans in recent months. – Additional reporting: Bloomberg
