Pernod Ricard Sales Dip: China & US Weakness Hits Martell

Cooling Demand in Key Markets: Pernod Ricard Faces 'Transition Year' Challenges in FY2026

Pernod Ricard announced its H1 FY2026 results, showing a challenging performance with significant declines in both organic revenue and profit. This report reflects the group's operational difficulties leading up to the end of 2025, continuing the sluggish trend from the previous fiscal year. Several of the group's strategic international spirit brands recorded declines, highlighting the pressure global market volatility has placed on the industry giant, with premium brands being the most affected.

Regional Performance: Double Blow from China and the US

In terms of regional performance, China and the United States were the primary factors dragging down results. In the US market, performance saw a clear decline due to a weak environment and inventory adjustments. The Chinese market was affected by anti-dumping investigations into Cognac imported from the EU, leading to a major slump in Martell sales within travel retail channels. Although Martell saw growth in other regions like South Africa, it was insufficient to offset the gap in China. In contrast, the Indian market showed resilience, becoming one of the few regions to record positive growth.

Brand Dynamics: Premium Scotch Under Pressure, Agave Spirits Rise

Regarding specific brands, the Scotch Whisky brand Royal Salute saw a significant decline, followed closely by Martell and Havana Club. While Jameson performed well in India and Germany, it remained weak in the US. However, the Agave spirits portfolio was a bright spot, with Código 1530, Del Maguey, and Altos Tequila all recording strong growth. Furthermore, the group's Ready-to-Drink (RTD) range and specialty brands like Bumbu showed expansion momentum, partially offsetting the downturn in the Scotch whisky division.

Future Outlook: 2026 Defined as a 'Transition Year'

Group Chairman Alexandre Ricard identified FY2026 as a "transition year," noting that despite the volatile environment, trends are expected to improve in the second half. The group plans to return to annual growth between FY2027 and FY2029. Current priorities include strengthening brand influence and improving operational efficiency. Leveraging its diverse global footprint and product portfolio, the group aims to navigate the unpredictable consumer market and find growth opportunities in a volatile environment to drive long-term sustainable development.

📅 Publish Date: 2026-02-19

🔗 Source: https://www.thespiritsbusiness.com/2026/02/china-and-us-hinder-pernod-h1-sales/