Liquor giant Pernod Ricard is set to pump more dollars into marketing to drive more people to buy their products in the long-term.
Pernod Ricard’s marketing spend increased by 16% in the first half of the fiscal year. In the second half, advertising and promotion (A&P) as a percentage of sales has decreased by 14% since the company increased their sales massively. Pernod Ricard is quick to adjust this and will be pumping more money into marketing to bring it up to a little over 16% as a share of sales. It is a massive investment to make people use more alcohol.
In the latter half of 2021 (six months ending on December 31) Pernod Ricard made €1.998 billion (US$2.28 billion) in profits. This was a 22% increase.
In the first half of 2021, the sales totalled €5.959 billion, a 17% growth.
The liquor giant has succeeded in pushing their products and raising sales in the Americas by 14%, in Asia and rest of the world by 16% and in Europe by 21%. The targeted countries were USA, Brazil, China, India, Turkey, Spain, France, and Eastern Europe.
The liquor giant is confident that they can get even more people hooked on their products across all regions, despite the effects of the ongoing COVID-19 pandemic. The company will be pushing to increase on-trade sales in outlets such as bars, hotels, while maintaining the rise in off-trade sales they experienced during the pandemic. In other words, selling even more alcohol than before the pandemic.
The company has already launched new brands in the latter half of the fiscal year. One brand is Jameson Orange whiskey. Pernod Ricard plans to flood marketing of the product till St. Patrick’s Day and beyond. They will also be heavily marketing tequila brand Avión.
Harms caused by alcohol marketing
The alcohol industry has exploited the ongoing COVID-19 pandemic to maximize profits by “crisis washing” and promoting alcohol as a coping mechanism. Big Alcohol’s marketing avalanche has specifically preyed on parents and women with young children.
Alcohol marketing causes harm to children and youth by saturating society with alcoho products, and perpetuating the harmful alcohol norm. Not stopping there, alcohol marketing prevents evidence-based alcohol industry regulation.
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