Pernod Ricard confirms Brexit-induced price hikes
Pernod Ricard has increased prices across its UK portfolio on the back of sterling’s devaluation following the Brexit vote.
The drinks giant, the world’s second largest spirits company after Diageo, blamed its decision to lift prices on its spirits and wines in the UK on the need to offset the pound’s sharp slump - sterling has fallen by approximately 15% in the nine months since Britain voted in favour of leaving the European Union last June.
The owner of Absolut vodka and Martell cognac said prices had been increased - by an unspecified amount - earlier this month.
The announcement was made as Prime Minister Theresa May triggered Article 50 - marking the formal beginning of Britain’s exit from the EU - in a presentation published ahead of an investors’ call on the company’s European, Middle Eastern, Africa and Latin American businesses.
The price hikes were first applied in March 2017 to “combat the impact of higher inflation resulting from the strong currency decline”, said Christian Porta, CEO and chairman of Pernod Ricard EMEA & LATAM.
Pernod had previously reported that sales in Britain rose 7% in the first half of its 2016-2017 fiscal year, as a 9% rise in international spirits sales and a 6% rise in wines more than offset a decline in champagne sales.