Drinkers turn to Jameson as brand sales rise 12%

Sales of Jameson whiskey increased by 12 per cent in the six months to the end of December as higher spending on advertising …

Sales of Jameson whiskey increased by 12 per cent in the six months to the end of December as higher spending on advertising attracted new drinkers.

This compares with growth of 10 per cent in 2004, according to Paul Duffy, chief executive of Irish Distillers Group, which owns the Jameson brand.

The whiskey saw particularly strong growth in the United States, its largest market, accounting for about 20 per cent of sales. Sales growth in the region was 21 per cent.

Newer developing markets such as South Africa and Russia also performed well, with sales increasing by 37 per cent and 88 per cent respectively. The value of sales rose by 14 per cent after Irish Distillers raised prices in some regions, Mr Duffy said.

READ MORE

In Ireland, which counts among the brand's top five markets, sales growth was in the high double-digits, according to Mr Duffy. He declined to be more precise, but said the Irish market had picked up after a lull last year and while the general Irish spirits market had grown by 4 per cent in the period, Jameson's share had increased by 10 per cent.

Irish Distillers is currently spending €40 million promoting Jameson. In Ireland, it's spending €400,000 sponsoring the Dublin International Film Festival.

Mr Duffy said the aim was to promote Jameson as a premium brand and attract drinkers away from less well-promoted brands.

This year Irish Distillers' sales will be boosted by the addition of new brands including Mumm Champagne and Montana Wines, which were bought by the group's parent, Pernod Ricard in July.

"This is a very exciting time both in terms of expanding the premium Jameson brand and adding new brands," said Mr Duffy.

Overall Paris-based Pernod Ricard reported a 67 per cent increase in sales to €3.27 billion.

The most recent figure was inflated by last year's acquisition of Allied Domecq and the ensuing integration of the new brands.

Pernod confirmed its target for €300 million of savings related to the Allied deal and added that restructuring costs would be between €350 million and €400 million.

Pernod said sales growth was strong in the booming economies of China and India. The company posted lower sales in Europe during the first quarter, but Pernod said its European market recovered during the second quarter.

Earnings growth of 10 to 15 per cent is forecast for this year.