Pernod Ricard’s online spirits sales increase by 92% in the United Kingdom
The Covid-19 effect had a positive impact on Pernod Ricard UK’s e-commerce sales, boosting its online sales by 92%.
The year ended on 30 June revealed some interesting results for Pernod Ricard. Online sales of its spirits on the UK market increased by 92%. Pernod Ricard UK announced the results at a briefing.
“We have been seeing for a number of years that e-commerce is particularly dynamic.” Said Louise Ryan, CEO of The Gin Hub (Pernod Ricard) after the session. “I think what Covid has done is probably accelerate the pace at which consumers have shifted their purchase into the e-commerce channel. We did anticipate that e-commerce would become more important to our business and I think we are well prepared for that”.
Pernod Ricard’s standalone business, Gin Hub, comprises gin brands such as Beefeater, Monkey 47, Malfy and Plymouth. This division unfortunately saw its sales fall by 6% during this period.
E-commerce more profitable than the travel retail
For Pernod Ricard, online sales have been more profitable than travel and commercial sales. In fact, its organic sales fell by 9.5% as a result of the pandemic affecting the travel industry.
“We are still down 6% [Gin Hub sales], so it’s not enough to offset declines in the on-trade. But, we’re gradually beginning to see the on-trade reopen and hopefully consumers now with the health and safety measures in place, will start to feel more comfortable about going out, and we’re seeing it happen gradually, but it very much differs on a market by market basis.” Ryan said.
Ryan also hopes that the creation of cocktails at home, a growing phenomenon in recent months, will lead consumers to opt for premium brands when ordering cocktails in bars and that these cocktails ordered at a bar will become more sophisticated.
“So in some markets there will be more brand calls when you order a gin and tonic, as well as a lot more people calling for cocktails rather than a simple serve. This will be good for the long-term prospects in terms of premiumisation and having a more educated consumer“.
Don’t drink and drive. Enjoy responsibly.