Irish Distillers Pernod Ricard Results Year ending 30 th June 2012
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1 Irish Distillers Pernod Ricard Results Year ending 30 th June 2012 July 1 st, 2012: The Financial Year 2011/2012 proved to be another highly successful one for Irish Distillers Pernod Ricard internationally with acceleration of the very positive global development of Jameson. The year was notable for a number of achievements; Jameson delivered double digit growth in over 50 markets across the globe and is on track to reach the 4 million case milestone in the coming months. To satisfy the growing global demand for the brand, the Midleton distillery is currently undergoing a significant 100 expansion which includes the creation of 60 full time new jobs. Jameson Highlights Jameson sales volumes reached million cases for FY 2011/2012 Jameson volume growth was +15% for the year, another strong performance for the brand. Value growth was an impressive +18%, 3% ahead of volume, confirming the premium nature of this iconic brand. Consistent value growth ahead of volume remains a key objective for Jameson. In its biggest market, the USA, Jameson s commanding sales performance continued to impress, accelerating to +29%, in an overall slow performing premium spirits market. 49 of the 50 states in the US contributed double digit growth to the overall market performance, confirming Jameson s strong ambitions as a national brand in the key US market. IMPACT Magazine, a key publication for the global spirits industry, ranks Jameson 25 th in its top global brands, up 4 places since last year, and confirming its strong and consistent progress among the world s elite brands. This publication also identified Jameson as a Hot Brand in the US market, for the 10 th consecutive year. Other key markets/regions which performed strongly for Jameson in FY 11/12 were: o Russia o South Africa o Travel Retail o Canada o Australia o France o Ukraine o Germany Of the 120+ markets in which Jameson is sold around the world, over 50 achieved double digit growth in FY 11/12 Much of Jameson s success can be attributed to a strong advocacy base amongst its target consumers, seeing them connect with its great taste, quality and authentic heritage.
2 Internationally, Jameson continues to roll out the legendary tales of John Jameson which is supported by TV and out of home. Jameson continues to build its core communications around marketing platforms distinctive to the brand including Film, St Patrick s Day, and Taste. Jameson continues to invest in film as its core sponsorship platform. In September 2011 Jameson launched a major co-operation with actor Kevin Spacey and his production company Trigger Street Productions. Designed to discover talented screenwriters and directors from Russia, South Africa and the USA, Jameson First Shot comes with an incredible prize where one winner from each country will have their script made into a short film by Trigger Street Productions, starring Kevin Spacey. Irish Distillers Pernod Ricard s renowned portfolio scooped 12 top awards at three of the world s most prestigious, international sprits competitions with best-selling, flagship, Jameson being awarded a gold medal at the International Spirits Challenge. Ireland In a market where the main feature of the FY11/12 performance is the continued long term shift from the on-trade (pubs, bars and hospitality sector) to major off-trade outlets, the Irish Distillers portfolio of spirits reflected this trend. The continued decline in the on-trade (-7% volume for spirits in FY 11/12) combined with decreased consumer confidence, had a negative impact on all sectors of the drinks industry in Ireland. However, within the Irish Distillers portfolio, there were a number of encouraging brand and category performances during the year: Jameson Despite the very challenging environment, Jameson continues to be the no.1 selling whiskey in Ireland and remains one of the brand s key markets globally. The company s consistent investment behind Jameson (advertising, sponsorships, events, and tastings) continued to pay good dividends in terms of brand performance and consumer recruitment was a special year for Jameson and film - not only was it the 10 th anniversary of the Jameson Dublin International Film Festival but the company was also delighted to have renewed this special partnership for another 3 years. To continue Jameson s long standing association with film, the brand also executed four experiential properties with the 'Jameson Film Cult Club' - these were hugely successful and have now been rolled out as part of a nationwide tour. Powers Gold Label Powers Whiskey, Ireland's second largest Irish whiskey and one of the great iconic symbols of quality, authenticity and tradition had a strong year. Powers continues to benefit from the company s consistent investment in the brand (advertising, sponsorships and channel activations). This year saw the release of Powers John's Lane Release to critical acclaim. Already this new product has won many accolades including Gold Best in Class at the 2012 International Spirits Challenge, Gold at the 2012 San Francisco Worlds Spirits Competition and Gold at the 2012 Irish Whiskey Masters. Absolut Absolut vodka, one of Pernod Ricard s major icon brands, continued to grow at a tremendous pace during FY11/12. Absolut benefitted from a strong brand building programme, including the innovative ABSOLUT BLANK Campaign, and title sponsorship of both the ABSOLUT Fringe Festival in Dublin and the visual arts section of the Galway Arts Festival. ABSOLUT dramatically increased it's
3 weighted distribution in the On and the Off trade channels and is now a top 10 spirits brand in the retail sector. Visitor Centres The Old Jameson Distillery located in the historic Smithfield area of Dublin and the Jameson Experience Centre Cork enjoyed a 13% increase in visitor numbers during the January June period with 160,500 predominately overseas visitors learning about and enjoying the authentic, smooth taste of Jameson. On a full year basis, with Midleton in Cork, our two centres welcome almost 300,000 visitors each year. Single Pot Still Irish Whiskeys In May 2011, Irish Distillers Pernod Ricard launched a new initiative to revive the traditional and original style of Irish whiskey The Single Pot Still Whiskeys of Midleton. Since its launch, sales of the range have exceeded all expectations and attracted great acclaim by the whiskey enthusiast community, garnering top industry awards and accolades. Building on this launch, the company released Redbreast 12 Cask Strength and Yellow Spot 12 Year Old in FY11/12, reaffirming its commitment to reinvigorating this uniquely Irish category of whiskey. Commenting on the performance of Irish Distillers Pernod Ricard for the FY 11/12, Anna Malmhake, Chairman and CEO said: The sustained progress of Jameson within the Pernod Ricard family of brands has been one of the group's most eminent success stories, growing from 466,000 cases when Irish Distillers joined Pernod Ricard in 1988, to almost 4 million cases in FY 11/12. Jameson is the No.1 selling Irish whiskey in the world and is on track to reach the 4 million case milestone in the coming months. Entering the elite top 25 International Spirits Brands Globally (Impact Ranking Feb 2012) is a notable achievement in another increasingly successful year for Jameson. This iconic Irish brand has been built with the worldwide support of 18,000 Pernod Ricard employees, operating through a decentralised and fully dedicated organisation. Combining the focus, energy and commitment of the people behind the Jameson brand, with the skill and passion of the people in the Pernod Ricard distribution network, continues to be a winning combination. As one of Ireland s most successful exports, Jameson is playing a key role in the export led recovery of the Irish economy as we continue to embrace progress by honouring our heritage while also delivering new and innovative expressions of Irish Whiskey. The brand is now poised for even greater success and Irish Distillers Pernod Ricard is embarking on an ambitious programme over the coming decade investing 100m in a satellite maturation and warehousing facility in Dungourney, Co. Cork and 100m in a distillery expansion project, which will more than double production at the Midleton Distillery. This large scale investment is a tangible reflection of the growing international success of Jameson, and the future potential of the company s entire Irish Whiskey portfolio. The success of the Old Jameson Distillery in Dublin and the Jameson Experience in Cork continues. The Jameson Experience visitor s centre in Midleton celebrated its 20th anniversary this year with
4 over 2 million visitors passing through its doors since The contribution that both these ventures make to Irish tourism and the local economy is immense. In contrast to this growth and optimism for our export markets, the outlook for our industry here in Ireland is concerning. Successful cultural events, in particular the Jameson Dublin International Film Festival which exhibits best practice in responsible marketing, are significant revenue and good will generating events for the local economy. I would urge the Government not to take any legislative actions regarding event sponsorship which would jeopardise this positive and much needed stimulus for domestic growth and recovery. Our industry needs a solid, sustainable home market to continue to deliver on the great export success of brands such as Jameson. (Ends) Issued on behalf of Irish Distillers by Heneghan PR For information Nigel Heneghan/Eve Noone Tel: (01) Nigel@hpr.ie / eve@hpr.ie Note to Editors About Irish Distillers Irish Distillers Group was formed in 1966, when a merger took place between Irish whiskey distillers John Power & Son, John Jameson & Son and the Cork Distillery Company. In an attempt to reverse the decline in Irish whiskey sales, the board of directors decided to close the existing distilleries in Cork and Dublin, and to consolidate production at a new purpose-built facility. A site alongside the existing distillery in Midleton, Co. Cork was chosen as the location for the new distillery, as there was no room for expansion in Dublin. Both the Old Jameson Distillery and the Old Midelton Distillery currently operate as visitor centres attracting over 330,000 visitors annually. Following an early unsolicited takeover offer and one of the most protracted battles in Irish corporate history made by GrandMet, Allied-Lyons and Guinness, Irish Distillers was taken over by Pernod Ricard in June 1988 with the support of the management and employees.
5 About Pernod Ricard - Pernod Ricard is the world s co-leader in wines and spirits with consolidated sales of 8,215 million in 2011/12. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin & Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: ABSOLUT Vodka, Ricard pastis, Ballantine s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well Jacob s Creek, Brancott Estate (formerly Montana), Campo Viejo and Graffigna wines. Pernod Ricard employs a workforce of nearly people and operates through a decentralised organisation, with 6 Brand Companies and 75 Market Companies established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics.
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