Interview, Part One: Pernod Ricard Chairman and CEO Alex Ricard

Alex Ricard has gotten off to a strong start at the helm of Pernod Ricard. He recently completed his first full fiscal year as Pernod Ricard’s chairman and CEO, a period in which the French drinks giant enjoyed solid sales growth—particularly in the U.S. market. Ricard recently sat down with SND managing editor Peter Zwiebach to discuss progress.

SND: Pernod Ricard saw solid sales growth (+4%) in the U.S. in its recently ended fiscal year. What were the key factors behind these encouraging results?

Ricard: The U.S. market is healthy overall, and we’ve done particularly well there. First, we’re seeing the continuation of premiumization. Of our key brands, Jameson is performing very well, as is The Glenlivet and our two Tequilas—Avión and Altos. Malibu is also growing—at low single-digits—which, given its size, is pretty good. The one real challenge we have is Absolut.

SND: Does Absolut resonate with consumers in their 20s and 30s?

Ricard: We need to revive the brand in the U.S. so that it resonates with Millennial consumers, who probably don’t know it well or engage with it regularly.

SND: How are you going about that?

Ricard: It takes time, because it’s a big ship to turn around. It takes money, and we’ve stepped up on investment behind the brand. And it takes creativity. We’re doing a lot on Absolut. We’ve rationalized the flavor range, because too many flavors tend to dilute the core brand. We’ve come up with two innovations—(ultra-premium) Absolut Elyx and Absolut Oak, which we’re testing now. And we have our Absolut Nights campaign, which has been airing since spring. As that campaign evolves, you’ll see more creativity and disruption focusing on the Millennial consumer.

SND: Jameson continues to record double-digit growth in the U.S. What’s driving its success?

Ricard: First of all, I’d say Jameson is not our brand. It’s the consumer’s brand. They consider Jameson as being their own, and I think that’s important. Also, it’s both very high quality and simple. There’s so much authenticity to it. The taste is very accessible. It’s extremely versatile—you can mix it or drink it neat as a shot or on the rocks, as a cocktail base. And it’s a brand that has a great story—and history—behind it.

News Briefs:

•Trinchero Family Estates is introducing Ménage à Trois Gold, a Chardonnay-focused blend. The new wine ($12), which is composed of Chardonnay, Viognier and Verdelho, brings the Ménage à Trois portfolio to a total of 16 wines, including six blends. The brand grew 9.1% to 2.7 million cases in the U.S. last year, according to Impact Databank.

•Total Wine & More is set to open its second San Francisco-area location on October 27 in Pleasant Hill. The Pleasant Hill store, located at 3250 Buskirk Avenue, will join Total Wine’s existing Bay Area venue in Fremont, which opened earlier this year. With the new opening in Pleasant Hill, Total will have 17 locations across California, out of nearly 150 stores nationwide.

•Avuá Cachaça is releasing a limited edition aged in Brazilian Tapinhoã wood. Avuá Tapinhoã ($80) is made with single-estate sugarcane from a family-owned farm in Carmo, near Rio de Janiero, and aged in Brazil’s native Tapinhoã wood for up to two years. The first batch of 600 bottles is rolling out to select U.S. markets this month. Avuá’s lineup also includes an unaged Prata Cachaça and Oak Cachaça, aged in French oak for up to two years. Avuá launched in the U.S. in 2013 and is self-imported by Avuá Imports, based in New York.

Craft Brewing And Distilling News:

•Japan’s Kirin Group has taken a 24.5% stake in Brooklyn Brewery, one of the U.S. craft beer movement’s pioneer companies. Financial terms of the deal weren’t disclosed. Kirin will support growth for the craft player, and the two companies will form a joint venture in Japan to market Brooklyn Brewery brands. That joint venture, in which Kirin will hold 60% and Brooklyn 40%, may also develop original products for the Japanese market and launch a restaurant business, Kirin said. Brooklyn Brewery will continue to operate independently, and its current management team will remain in place. The craft brewer is slated to move into new headquarters at the Brooklyn Navy Yard in 2018. Those facilities will include a 75,000-square-foot brewery and rooftop bar. Brooklyn Brewery is the 12th-largest craft brewer in the U.S., with annual volume of 277,000 barrels, according the Brewer’s Association.

•Healdsburg, California’s Sonoma Cider is adding three new offerings to its lineup—The Imperial, The Sleigh and The Cutter—ahead of the holiday season. The Imperial, part of Sonoma’s Cidermaker Reserve series, is a blend of organic apple juice and eucalyptus honey that is fermented and aged six months in whiskey barrels. The Imperial (10.3% abv) is available in 500-ml. bottles ($13) and 5.16-gallon kegs. Meanwhile, The Sleigh and The Cutter appear in the Sonoma Cider Winter Mix 4-Pack ($24). The Sleigh features seasonal spices such as allspice, cinnamon, cloves and nutmeg, while The Cutter has notes of ginger and molasses. Both are at 5.5% abv and available in 22-ounce bottles and 5.16-gallon kegs. Sonoma Cider’s four core ciders include The Hatchet, The Pitchfork, The Anvil and The Washboard.

•San Diego’s Alpine Beer Co. has detailed plans for several new entries, including its first ever canned brew. Slated to roll out in the first quarter of 2017, Alpine’s forthcoming Windows Up American IPA will be available in 12-ounce bottled six-packs, while Bus Ride, a Columbus hopped pale ale, will follow in the second quarter as Alpine Beer’s first beer packaged in 12-ounce cans. A third new brew will also launch later in year. The trio will join Duet IPA, Hoppy Birthday Session IPA, Willy Vanilly American Wheat Ale and Mandarin Nectar, among others, in Alpine’s portfolio.

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