Pernod Ricard released its sales and results for Q1 FY23, with sales totalling €3,308 million and an organic growth of +11%.

China and India saw strong growth, with Europe also dynamic thanks to a tourist driven improvement in the on trade. Travel retail is also rebounding. Alexandre Ricard, chairman and CEO, said: “Our performance continues to be broad-based with growth across many markets and diversified across our portfolio with all our spirit segments in double digit growth. 

“Within a context which remains challenging and volatile, as for every business, we continue to actively invest to support our unique competitive advantages and fuel our future growth,” Ricard added. Diversified double-digit growth was seen across all spirits segments, with +12% growth driven by Scotch, Jameson, Absolut, Beefeater and Martell, and +13% driven by the growth of Seagram’s Whiskies. “We expect this dynamic growth to continue through FY23, demonstrating the strength of our strategy and the dedication and full engagement of our teams around the world”. 

Beam Suntory reports strong first-half performance driven by premium brands.

A strong performance in key markets saw Beam Suntory’s net sales increase by 13% year-on-year in the first half of 2022, a 25% increase on the pre-pandemic period in 2019. Sales grew at more than twice the rate of volumes, an indication that Beam Suntory’s premiumisation agenda is paying dividends.

“The fact that we were able to deliver these strong results in a challenging period underscores the resilience of our markets, quality of our brands, and the significant impact of our premiumization strategy,” said Albert Baladi, president, and chief executive of Beam Suntory. The company recently announced a $400 million investment in its Booker Noe distillery in Boston, Kentucky.

Diageo Trading comment – Oct 

Ivan Menezes, Chief Executive, announced; “We have made a good start to fiscal 23, with organic net sales growth across all regions, reflecting our advantaged portfolio, our continued investment in brand building and our agile supply chain and culture. We expect the operating environment to remain challenging with ongoing volatility due to geopolitical uncertainty, a weakening of consumer spending power, inflationary pressures and disruption related to Covid-19. However, I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities, including our ambitious 2030 sustainability plan.

We remain well-positioned to deliver our medium-term guidance for fiscal 23 to fiscal 25 of organic net sales growth consistently in the range of 5% to 7% and organic operating profit growth sustainably in the range of 6% to 9%.”

In a separate release in September, Diageo also updated us on plans for a new distillery in Scotland. “Earlier this year Diageo announced plans to invest £1 billion in expanding its malt whisky production capacity in Scotland to meet growing global demand for our brands.” Three sites in Speyside, adjacent to existing distilleries at Teannich, Glendullan and Inchgower have been shortlisted for the new distillery.

Rare Whisky Q3 results

The Rare Whisky 101 Apex 1000, the barometer of the UK auction market for rare whisky bottles, was unable to build on the strong start to the year, with a slight decline of 0.6% in Q3. It seems like, with some notable exceptions, the slowdown was at the top end of the market, with the Icon 100 index declining by 3.2%. The Japanese index continued to grow outperform all other indices, although the pace of growth at 3% is slowing.  

At brand level, a swing from -11% in the case of Brora to a whopping +19% for Balvenie shows that volatility is increasing. The big guns of Macallan, Yamazaki and Karuizawa continue to lead the way this year, showing that the very top end iconic brands remain in much demand, even though prices may be softening. Glendronach and Glenfarclas performed well in Q3, which suggests that brands with a strong use of sherry cask finishes are increasingly popular.

Auction Update

Sothebys held six auctions in quarter three, which returned $7.8 million in sales. As ever, the auctions were dominated by high end Macallans along with some prized collections from Karuizawa, Hibiki and Yamazaki. Notable among these auctions was the sale of the oldest whisky in the world, a Macallan 81-year-old, which sold for GBP 300,000.

Bonhams had two auctions in the quarter, one in Hong Kong and one in London. The Hong Kong sale was, not surprisingly, dominated by Japanese bottles from Hanyu and Karuizawa. However, it was a bottle of Glenfiddich 50-year-old which stole the show, selling for between $25,000 and $32,000. In London, there was an interesting range of bottles on offer, notably from Springbank and Ardbeg, with, of course, The Macallan also dominant. Again, as expected, it was a Macallan that came out on top; a 50-year-old sold for GBP 50,000. Sothebys held six auctions in quarter three, which returned $7.8 million in sales. As ever, the auctions were dominated by high end Macallans along with some prized collections from Karuizawa, Hibiki and Yamazaki. Notable among these auctions was the sale of the oldest whisky in the world, a Macallan 81-year-old, which sold for GBP 300,000.

Bonhams had two auctions in the quarter, one in Hong Kong and one in London. The Hong Kong sale was, not surprisingly, dominated by Japanese bottles from Hanyu and Karuizawa. However, it was a bottle of Glenfiddich 50-year-old which stole the show, selling for between $25,000 and $32,000. In London, there was an interesting range of bottles on offer, notably from Springbank and Ardbeg, with, of course, The Macallan also dominant. Again, as expected, it was a Macallan that came out on top; a 50-year-old sold for GBP 50,000.