Pernod Ricard looks to on-trade for UK growth

Denis O’Flynn, PRUK’s managing director, said that the on-trade was an area in which he felt the wine and spirits company had the most opportunities for growth at the moment.

He highlighted brands such as Absolut (which has just received a new look), Chivas, The Glenlivet and Havana Club.

“We need to look at the strength of some of the brands we have and leverage that through bars and pubs,” he told The Publican’s Morning Advertiser.

“Brands like The Glenlivet for example (which has seen double digit growth in 30 markets in the last financial year and is now approaching the one million case mark), have not been pushed very hard in the on-trade and so there are opportunities there for us to grow.”

Expanding the footprint​

The other side of the strategy, he said, was a drive called “reaching the mainstream.” Under this initiative PRUK looks to increase consumption of brands that already have strong distribution in on-trade venues.

Irish whiskey Jameson, which has around 70% distribution in the on-trade according to O’Flynn, and Malibu were among these brands.

“Quite simply for these brands it’s about expanding their footprint,” he explained.

The strategy will centre round tapping into the growing cocktail culture in the big cities and towns with events, sampling and in-outlet activities.

Wine​

He said there was less opportunity in the on-trade for the company’s wine brands, which include Jacob’s Creek and Brancott Estate, though he admitted he sometimes got frustrated he couldn’t order PRUK brands when in pubs and bars.

“I understand the reluctance to put wine brands on a list when consumers can compare the price to the cost in a supermarket but I still think there is room for branded wine, particularly within the larger large managed groups.”

Sticking with premium​

Flynn was speaking at an event in London today (3 September), at which deputy CEO of Pernod Ricard, Alexandre Ricard, denied the company was moving away from a strategy of premiumisation in the UK.

The launch of Oddka, a range of unusually flavoured vodka-based liqueurs, and Domecq 1820, a Spanish Brandy aimed at the 50+ market, earlier this year, neither of which sell at premium price, were not signs of a shift to standard brands and pricing, he said.

“It is not always about being premium every single time. These launches fit perfectly into the innovation part of our three pillar strategy for growth (premiumisation, innovation and expansion).”