Dive Brief:
- Alcohol giant Pernod Ricard established a business unit to focus on its whiskey operations in the U.S.
- Richard Black, a veteran of Pernod Ricard’s whiskey and cognac operations for more than 23 years, was appointed as the CEO of North American Distillers.
- Pernod Ricard said the new business segment follows a “substantial investments in the thriving category” and a desire to bring the whiskey operations in alignment with the company’s broader growth ambitions.
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Dive Insight:
Pernod Ricard, headquartered in France, has a large presence in the U.S., with brands like Absolut Vodka and Kahlúa coffee liqueur. The newly formed company could help Pernod Ricard better compete in the American whiskey market where it goes up against giants like Diageo and Jim Beam owner Suntory.
Pernod Ricard’s American whiskey brands previously existed within its wide portfolio of spirits, but they will now have their own dedicated unit under the larger company umbrella.
In the press release, the company pointed to its recent investments in American-owned whiskey brands like Jefferson’s, Rabbit Hole, Smooth Ambler, Skrewball and TX in building up its presence in the segment.
The company also owns and operates European whiskey brands like Jameson Irish Whiskey and Chivas Regal.
Black most recently served as the global marketing director for French cognac maker Martell. He pointed to the dynamism of whiskey as a driving factor in building a new company to help Pernod Ricard’s brands reach their potential.
“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,” Black said.
As consumer tastes evolve and the alcohol industry faces competition from other beverage categories, major players in the space are turning to portfolio diversification and honing in on niche markets. The spirits category is projected to be worth $107 billion in 2029, increasing at a compound annual growth rate of 5.27%, according to Mordor Intelligence.
Molson Coors, a longtime stalwart of the beer space, has turned to ultra-premium spirits like bourbon to capture a larger market of consumers seeking more expensive spirits.
Pernod Ricard also is extending into the lucrative and quickly growing ready-to-drink cocktail market. Earlier this year, it debuted its first collaboration with soda giant Coca-Cola, Absolut Vodka with Sprite.
