Pernod Ricard grapples with trade tensions, market hurdles as sales slip
By Felicia Nwosu
Global spirits company Pernod Ricard reported a 3% dip in third-quarter sales, missing expectations amid renewed tariff pressures and shifting global demand patterns.
The maker of Jameson whiskey and Mumm champagne said its performance was weighed down by supply disruptions in India, a slowdown in Chinese cognac sales, and a sharp decline in travel retail due to curbs on Chinese duty-free alcohol.
While American distributors stocked up ahead of potential tariff hikes, it wasn’t enough to offset broader headwinds. CEO Alexandre Ricard noted that temporary setbacks, such as an Indian bottling glitch and late Easter timing, also distorted the quarter’s numbers, but these are not expected to carry into the next period.
Despite the turbulent environment, the company held firm on its full-year outlook. Still, analysts remained cautious, pointing to persistent concerns around U.S. and China trade dynamics. With tariffs on European spirits still looming, market sentiment continues to waver.
Though Pernod’s shares briefly fell 1.5%, they later steadied. Industry observers say the stock may have room to bounce back if trade conditions stabilize and consumer appetite for premium liquors holds up, particularly in the U.S., the company’s largest market.
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