Glenlivet maker Chivas Brothers 'taking industry lead' on sustainability as whisky sales recover
“Our performance demonstrates resilience and stability, underpinned by our impactful premiumisation strategy which delivered an upward trajectory in the second half.”
Chivas Brothers, the whisky giant whose brands include The Glenlivet and Chivas Regal, insisted it was “leading from the front” when it comes to industry sustainability even as it ramps up capacity.
The group, which forms the Scottish part of the Pernod Ricard global spirits empire, also highlighted its “broad and balanced footprint” as it reported a 1.6 per cent dip in full-year net sales. Chivas Brothers chairman and chief executive, Jean-Etienne Gourgues, said the results reflected “a year of stabilisation against a record high comparison base”, and following two years of historic growth.
Crucially, after briefly softening in the company’s first half (July to December 2023), sales returned to growth in the second half, from January to June of this year, as “favourable pricing movements” across all strategic brands offset volume slowdown.
The whisky producer’s financial performance can partly be attributed to parent Pernod Ricard stopping all exports of its international brands to Russia at the end of April 2023. Excluding this market, Chivas Brothers’ net sales performance for the past financial year was up 1.4 per cent, compared to the prior 12 months.
Gourgues said the firm’s “premiumisation” strategy was continuing to pay off as demand for prestige whisky strengthened. Chivas Brothers’ prestige range grew ahead of the rest of the portfolio for the third year in a row, with Royal Salute achieving an historic high in absolute net sales. Ballantine’s capped the year with a sales rise of 1 per cent, beating target in 70 per cent of its “focused measured markets”.
As part of its commitment to “positively shape the future of Scotch”, Chivas said it continued to take action across its business, investing in initiatives that reduce its carbon footprint and enable it to meet its sustainability targets.
Gourgues said: “Our [full-year] performance demonstrates resilience and stability, underpinned by our impactful premiumisation strategy which delivered an upward trajectory in the second half. We’re lapping two historic years, a complex geopolitical landscape and ever-changing consumer trends, yet still delivering on our strategic vision, owing to our broad and balanced footprint.
“We are also leading from the front when it comes to sustainability in our industry, making significant investments that ensure we can meet our ambitious environmental targets while increasing capacity to meet the global demand for Scotch whisky.”
Meanwhile, Pernod Ricard, which ranks as the world’s second-biggest spirits group after Diageo, said it had purchased a minority stake in Almave - the non-alcoholic blue agave-based spirit brand co-founded by F1 star Sir Lewis Hamilton, Mexico-based incubator Casa Lumbre and by the advisory and investment firm Copper.
Hamilton said: “When I decided to embark on this project it was important to me to find partners who could help me realise my vision without compromise. I am proud we were able to do that, not just in quality and taste but also with real ingredients and time-honoured techniques.”
Pernod Ricard said it would bring its “strong experience in brand building and global distribution” to help scale the product to several markets throughout the world.
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