The high single-digit growth rates of recent years for spirits in the US are set to return to pre-pandemic levels in the coming months, according to the head of Pernod Ricard.
In results for the six months to the end of December, announced last week, the brand owner posted a 5% year-on-year increase in its US sales. Like its peers, Pernod Ricard saw its performance in the market benefit from the cocktails-at-home movement during the worst of the pandemic period.
Speaking to media in London today, CEO Alex Ricard admitted that the “new normal” in the key battleground would be a return to “historical rates of growth” for spirits brand owners.
“The US has grown value between 4% and 5% on average every year for at least the last decade,” Ricard said. “During the Covid crisis, that rate accelerated to roughly 8%. As it’s normalising, it’s closer to +3% right now, though that’s cycling a high base.
“The US did accelerate during Covid, but it’s now returning to historical trends. It’s up to us to allocate resources accordingly, depending on the categories that are thriving.
When asked whether he was satisfied with the company’s presence in Tequila, the main driver of spirits growth in the US since early 2020, Ricard added: “I don’t look at the US through a brand-by-brand lens. The reality is, whether it’s Cognac or Tequila, Irish whiskey or single malt, it’s all about being agile in allocating the right resources behind the right brands. At the same time, we’ve grown broadly in line with the market without any significant presence in one of the fastest-growing categories.”
Late last year, the group added Código 1530 to its Tequila portfolio, which includes the Avion and Olmeca brands. According to Ricard, Pernod Ricard’s Del Maguey is the leading mezcal brand in the US in volume terms.
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