Pernod Ricard Considers Selling Imperial Blue
According to a report in India, Pernod Ricard is considering selling its whisky brand Imperial Blue. When Just Drinks contacted the company, it refused to comment on the “rumors” about its plans.
Other reports in the local business publication LiveMint, said that the group is looking to sell Imperial Blue whisky. This would allow it to better focus on its other brands, including Chivas Regal, Glenlivet, and Jameson.
Several sources close to the matter told LiveMint that the sale would be valued at about $595.4 million. The company’s CEO Alexandre Ricard said India is the company’s “second largest market” for the fiscal year ending in June.
Pernod Ricard to Offload Imperial Blue Whisky Brand
The reason is India’s developing GDP, “very strong and favorable macro fundamentals” and an increasing middle class and affluent population, with “25 million people joining the legal drinking age population” every year.
“Premium plus western style spirits” are experiencing an upward trend in India, according to Pernod. Seagram whiskies such as Royal Stag and Blender’s Pride contributed to the 5% growth in Pernod’s strategic local brands segment during the full year.
With a total net sales of 11.59 billion euros for FY24, Pernod Ricard reported a slight decline of 1 percent from the previous year. China and the US saw sales fall by 9 percent and 10 percent, respectively, while India saw 6 percent growth.
Ricard told analysts Pernod was on track to meet its “medium-term” growth goals, which include achieving organic net sales growth in the range of 4% to 7% and increasing organic operating margin by 50 to 60 basis points.
According to Barclays analysts, India had a more stable performance in the full year, however, it has a “lower margin than China”. He said this would not help overcome the current difficulties in the region.
Letting go of Imperial Blue could move resources to other brands and improve the opportunity to increase profits.
