- Sales from three months to end of March decline 2.3% to EUR42.2m (US$48m)
- French sales tumble 9.9%, ‘international’ rises 3.8%
- “Commercial negotiations” ongoing around “significant increase in the cost price of matured spirits”
A near-double-digit sales slide in France has undone Marie Brizard Wine & Spirits’ successes overseas in the first quarter.
In a reversal of fortunes for the brand owner’s two reporting regions, France and the ‘international’ reporting region both headed in opposite directions in Q1 compared to the closing quarter of 2024. Domestic sales were down 9.9% (compared to +1.1% in Q4), with ‘international’ coming in up 3.8% (versus -9% in Q4).
Total sales from the three months to the end of March declined 2.3% on the corresponding period a year ago.
Following its warning in February of turbulence in its home market this year, the Paris-headquartered group flagged “challenging annual negotiations” with off-premise operators in the quarter. The talks, occurring against the backdrop of a “continued slowdown” for spirits in the country, have been complicated by increased costs for the William Peel blended scotch owner that are affecting matured spirits.
Sales overseas, meanwhile, were driven by a jump of one-third (33.8%) in Spain thanks to a combination of a “sluggish” year-prior performance and a strong showing for the industrial services operations. Pulling in the other direction, however, was the US, where sales tumbled by 51.3% as the “uncertainty surrounding successive tariff hikes announcements combined with our distributor’s decision to significantly reduce inventory levels”.
“The first quarter sales performance has confirmed that 2025 is a year of transition for the group, marked by complex commercial negotiations,” the company said. “These negotiations aim to partly offset the significant increase in the cost price of matured spirits – particularly for scotch whisky and cognac – through the necessary price adjustments.
“Without these price changes, the economic performance of the France cluster could be significantly affected.”
Looking forward, Marie Brizard, which strengthened its French distribution arrangement with Sazerac Co in late 2023, intimated that a stronger focus on industrial services and third-party distribution could be on the cards, with both areas “posting encouraging performances and harbour growth potential”.
