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Dive Briefing:
- Alcohol giant Pernod Ricard has established a division to focus on its whiskey business in the United States.
- Richard Black, a 23-year veteran of Pernod Ricard's whisky and cognac divisions, has been appointed CEO of North American Distillers.
- Pernod Ricard said the new business unit followed “significant investment in a growing category” and a desire to align the whisky business with the company’s broader growth ambitions.
Dive Insight:
Pernod Ricard, headquartered in France, has a major presence in the United States with brands such as Absolut Vodka and Kahlúa coffee liqueur. The newly formed company could help Pernod Ricard better compete in the American whiskey market, where it faces giants such as Diageo and Jim Beam owner Suntory.
Pernod Ricard's American whiskey brand, previously located within a broader spirits portfolio, now has its own dedicated division within the larger company.
In a press release, the company said it has recently invested in American whiskey brands such as Jefferson's, Rabbit Hole, Smooth Ambler, Skrewball and TX to build its presence in the category.
The company also owns and operates European whisky brands such as Jameson Irish Whiskey and Chivas Regal.
Richard Black, CEO of North American Distillers.
Courtesy of Pernod Ricard USA
Black, most recently global marketing director for French cognac maker Martell, cited the dynamism of whisky as a driving force behind the creation of a new company to help Pernod Ricard’s brands reach their potential.
“My mission is to leverage this potential and focus on this brand and its operations to achieve its goals and build a best-in-class marketing and sustainable operations team based on the deep expertise of its people,” Black said.
As consumer tastes evolve and the alcohol industry faces competition from other beverage categories, key players in the sector are shifting to diversifying their portfolios and focusing on niche markets. According to Mordor Intelligence, the alcohol category is expected to be worth $107 billion by 2029, growing at a CAGR of 5.27%.
Molson Coors, which has long been a major player in the beer market, is looking into premium spirits like bourbon to attract consumers who are more willing to pay more for their liquor.
Pernod Ricard is also moving into the lucrative and fast-growing ready-to-drink cocktail market. Earlier this year, the company launched its first collaboration with soda giant Coca-Cola and Absolut Vodka with Sprite.
