Pernod Ricard has set up a whiskey subsidiary in the US, North American Distillers, to “reinforce its commitment and ambition to its American Whiskey portfolio”.
The “global brand company” will cover marketing and operations and will oversee the construction of a Jefferson’s Bourbon distillery in Kentucky.
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The division will be led by CEO Richard Black, a Pernod Ricard veteran who was previously marketing director for Martell Cognac in Paris. Black will oversee the company’s full American Whiskey portfolio and North American operations sites.
It follows “substantial investments in the thriving category”, Pernod said in a release yesterday (11 July).
Black said: “American whiskey is a dynamic spirits category, and our portfolio shows immense potential for future growth.
“Our investments made in Jefferson’s, Rabbit Hole, Smooth Ambler, Skrewball and TX, underscore our ambitious commitment.
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By GlobalData“My mission is to harness this potential and drive a singular focus on these brands and our operations, driving us towards our goals and creating a top-tier marketing and sustainable operations team on the back of our peoples’ deep-rooted expertise.”
In 2022, Pernod set out plans to spend €238m (then $251.2m) on a distillery and warehouses for Jefferson’s Bourbon in Marion County, Kentucky.
The move was part of a wider strategy to expand capex, particularly within aged spirits. Other investments have included increasing capacity at the Jameson distillery in Ireland and launching a Chinese whisky.
In 2022, Pernod also introduced a dedicated business unit to manage the marketing and production of its American whiskey brands.
The American Whiskey Collective houses its Jefferson’s, Rabbit Hole, Smooth Ambler and TX Whiskey brands, and sits in the group’s North American division. The group said the new units would mirror its The Gin Hub and House of Tequila entities, created to drive greater success in their respective spirits categories.
Just Drinks has contacted Pernod to find out how this venture will sit alongside North American Distillers.
In the first half of its fiscal 2024, Pernod’s US division saw net sales decline 7% to €1.86bn but said consumer demand remained “resilient”.
Group organic sales for the period declined 3% in organic terms to €6.6bn, while net income declined 12% to €1.6bn. EPS declined 16% to €5.68. Organic operating profit was down 3% to €3.1bn.
At the time, CEO Alexandre Ricard said he expected “broadly stable organic net sales” for its full year, predicting a “dynamic” second half would pull up the first.
