Good times roll for Pernod Ricard

By Kim Jae-won

Pernod Ricard Korea (PRK) shows steady growth despite a declining domestic whiskey market as its total sales grow 5.1 percent in 2010, compared to the previous year. The Korean unit of the French-based global liquor group also continues to raise its profile as a responsible corporate citizen by recognizing top local artists and hosting a leg of the European professional golf tour.

Its big three labels ― Ballantine’s, Royal Salute and Imperial ― have led in the ultra-premium whisky category. The domestic whisky market remains lukewarm but PRK’s market shares remain robust.

Ballantine’s and Royal Salute achieved favorable results in the over 21-year-old whisky market with 27.0 percent and 26.6 percent growth, respectively.

Imperial 21 year-old also received a strong response, posting a 271.6 percent hike after revamping its package design at the end of 2009.

While the domestic 17 year-old whisky category suffered the worst, Imperial 17 sales climbed 16.8 percent and also increased its market share.

Premium and innovative marketing activities

The leading company in the domestic liquor industry said its innovative marketing activities were attributed to the stellar performance.

The launch of Imperial19 Quantum, Korea’s first 19 year-old ultra super premium whisky in November was successful. The product impressed local consumers with its sophisticated design and fresh taste.

The distiller also produced the Imperial15 JSP Limited Edition in May with the likeness of Park Ji-sung on its bottle, then-captain of the Korean national football team, to support victory at the FIFA South Africa World Cup. PRK enjoyed a high demand of its products thanks to the promotional event during the World Cup period in June.

In December PRK launched Ballantine’s Glenburgie 200th Anniversary Special Edition in collaboration with French designer Christian Lacroix. It also conducted a variety of promotions during the 2010 Formula 1 Grand Prix held in Yeongam, South Jeolla Province in October to promote Mumm, the official F1 champagne.

New revenue sources

PRK says Vodka and champagne brands are the future growth engines of the distiller. Absolut Vodka is the clear leader in the vodka category with a market share above 70 percent. Its sales rose 34.4 percent in 2010 compared to the previous year.

Sales of Champagne Mumm also spiked 73 percent during the same period.

Various projects and CSR activities

PRK is making a variety of contributions to society and deploying various corporate social responsibility (CSR) activities as a leading company in the domestic liquor market.

It placed “bandaged cars” at main expressway rest areas and has conducted a Smart Driving Campaign since 2007 to encourage a responsible drinking culture. The distiller also established the Smart Driving Foundation in 2010 to prevent drunk driving.

With the aim to provide opportunities for young Korean golfers, it hosts the Ballantine’s Championship, jointly held by the EPGA and the KPGA. The championship offers 3.3 billion won, or 2.2 million euros, the fourth-largest cash prize among 11 EPGA tour events held in Asia.

Mark of Respect is an annual award that recognizes the most respected artist excelling in the field of arts and culture and has become an authoritative award symbolizing honor and praise. Since it was first awarded in 2005, movie director Park Chan-wook, former Culture Minister Lee O-young, author Hwang Sok-yong, maestro Jung Myung-hoon, photographer Kim Joong-man, and actor Ahn Sung-ki have been named winners. The entire cash prize of 50 million won has traditionally been donated.

Pernod Ricard is a world leader in wines and spirits with consolidated sales of 7,081 million euros in the fiscal year 2009/2010. Created in 1975 by the merger of Ricard and Pernod, the group has undergone sustained development, based on both organic growth and acquisitions.