Absolut's U.S. Sales Fall As Consumers Choose Cheaper Alternatives
source: http://online.wsj.com/article/SB125202301039385113.html
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Pernod Ricard SA placed a big bet on the global prospects for Absolut vodka when it paid €5.3 billion for the brand's Swedish parent last year. But now Pernod is wrestling with sluggish sales in the U.S., Absolut's largest market by far.
(Kesmodel, D., 2009, September 4, par.1)
The French liquor giant, citing market-research firm Nielsen Co., said sales of Absolut at U.S. food and drug stores fell 6% by volume in the 52 weeks through Aug. 22. Overall, Pernod said, profit for its fiscal year ended June 30 rose 13%. But it warned of stagnant global sales for spirits in the current year.
(Kesmodel, D., 2009, September 4, par.2)
The U.S. accounts for more than half of the brand's retail revenue and the majority of its profits, according to the industry journal Impact and analysts. Absolut is the second-largest vodka in the U.S. by volume after Diageo PLC's Smirnoff, according to research firm Beverage Information Group.
(Kesmodel, D., 2009, September 4, par.4)
Switching by recession-weary U.S. drinkers to lower-priced rivals such as Skyy and Svedka has hurt Absolut. Bacardi Ltd.'s Grey Goose, the No. 3 vodka brand, has experienced similar troubles. Absolut also has more exposure than many vodkas to the hard-hit bar-and-restaurant segment, the company said.
(Kesmodel, D., 2009, September 4, par.3)
[IMAGE: piyakkar.com]
(Kesmodel, D., 2009, September 4, par.1)
The French liquor giant, citing market-research firm Nielsen Co., said sales of Absolut at U.S. food and drug stores fell 6% by volume in the 52 weeks through Aug. 22. Overall, Pernod said, profit for its fiscal year ended June 30 rose 13%. But it warned of stagnant global sales for spirits in the current year.
(Kesmodel, D., 2009, September 4, par.2)
The U.S. accounts for more than half of the brand's retail revenue and the majority of its profits, according to the industry journal Impact and analysts. Absolut is the second-largest vodka in the U.S. by volume after Diageo PLC's Smirnoff, according to research firm Beverage Information Group.
(Kesmodel, D., 2009, September 4, par.4)
Switching by recession-weary U.S. drinkers to lower-priced rivals such as Skyy and Svedka has hurt Absolut. Bacardi Ltd.'s Grey Goose, the No. 3 vodka brand, has experienced similar troubles. Absolut also has more exposure than many vodkas to the hard-hit bar-and-restaurant segment, the company said.
(Kesmodel, D., 2009, September 4, par.3)
[IMAGE: piyakkar.com]
