Pernod Ricard improved its forecasts for 2020
The French concern Pernod Ricard, the owner of such Scotch whisky brands as Chivas Regal, Ballantine's Aberlour and The Glenlivet, improved its forecast for 2020 in the latest statement. In March the company estimated a decline in the full-year profit by 20% compared to the previous year, while currently the decline is predicted be just 15%.
A large part of the predictions included in the March forecast turned out to be accurate, like the decline of sales in China and in travel retail. It turned out however, that off-trade in the USA and Europe was more resilient then initially predicted.
Alcohol sales increase
The increase in off-trade sales in the US and Europe (about which we wrote HERE) turned out to be so significant that it allowed for an optimistic forecast correction for 2020.
The same conclusions can be drawn from the results published by another French company from the alcohol industry - Rémy Cointreau. The company's sales in the first quarter of 2020 have decreased compared to the previous year, but the result is as much as 20% better than initially expected. With the gradual lifting of the restrictions around the world, as well as the revival of the hospitality and travel industries, it can be assumed that the coronavirus pandemic will not have such negative consequences for the alcohol industry as initially feared.
Source: The Drink Business
