As cocktail culture continues to grow in the overseas precisely USA so does the alcohol market; unfortunately for Pernod Ricard SA , owners of Absolut Vodka,millennials’ tastes are shifting from vodka to bourbon.
This change has not yet affected the company’s profits, as it’s expected to post a 7.9% increase in sales and a 30% increase in net income. It helps that the company owns various alcohol brands aside from Absolute, including Jameson
Irish whiskey and Martell cognac.Liquor analyst Trevor Stirling says that this shift away from vodka is “not universal gloom and doom, but they’re in a
Between 2010 and 2014, vodka consumption declined almost 2%. In the same period,whiskey sales rose 2.7%, and American bourbon and Tennessee whiskey both climbed nearly 17%. In the U.S. alone vodka sales went down 0.3%, whiskey went up 2.7%, and American bourbon and Tennessee whiskey
rose 7.4%. Half of Pernod’s U.S. sales come from Absolut,sales volumes of which declined 3.3% lastquarter.
Diageo PLC is currently the world’s top liquor company. If Pernod wants to surpass Diageo, it’ll have to “find more pours in the high-value U.S. market” either by reinventing the Absolut
brand, which Stirling says can take between three and five years, or via acquisitions.
In January (9th) 2014 Pernod Ricard removed vodka from absolut to maximise the brand.
Compiled, edited & posted by: @djshyluckjimmy.