Chivas Brothers, the scotch whisky arm of Pernod Ricard, recently released its full-year performance for FY (fiscal year) 24. Here are all of the key points from the report.
Net Sales Down -1.6%
In FY24 (July 2023-Jun 2024), Chivas Brothers’ net sales have declined by -1.6%. However, this follows a period of stabilization, following a steeper decline in H1 (July-December 2023) which saw sales fall by -6%. In H2, sales increased by 5%.
Chivas Brothers attributes the small decline in net sales to the cessation of all of its brands to Russia at the end of April in 2023. Excluding the Russian market, net sales have increased by 1.4% compared to FY23.
Chivas Brothers Is Confident In Its Premiumisation Strategy
The Chivas Brothers brand, Royal Salute, had a fantastic year and showed historic growth of 5% in FY24. This reflects the last three years of Royal Salute’s growth ahead of the rest of the portfolio.
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Bottles such as the iconic Royal Salute 21 Year Old and the Royal Salute Miami Polo Edition largely drove the growth, leading Chivas Brothers to renewed confidence in its premiumization strategy. According to a press release, the increased sales this year signaled that “consumers are seeking high-end whiskies connected to bespoke, cultural experiences.”
Regional Market Performance
Amongst global market dips, Chivas Brothers has demonstrated its resilience and reports a +12% CAGR (compound annual growth rate) since FY21.
Elsewhere in the company’s portfolio, Ballantine’s finished FY24 up 1%, Chivas Regal gained shares in 50% of its focused markets despite a small decline in net sales of -1.2%, and The Glenlivet saw a small decline of -6% in the North American market.
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However, in other regional markets, Chivas Brother saw impressive growth: +5% in Western Europe, +22% in Japan, and +35% in Africa and the Middle East. This was a stabilizing factor in the decline of other regional markets such as Eastern Europe (+8% excluding Russia), North America (-19%) and South America (-8%). Chivas Brothers attributes these declines to global category softening, which has been seen across the breadth of the industry for some time.
Global Travel Retail
Global Travel Retail, an increasingly key market for brands striving for premiumization, saw a +4% growth in FY24, with Ballantine’s, The Glenlivet, and Royal Salute doing particularly well.
Chivas Brothers Chairman and CEO, Jean-Etienne Gourgues:
“Our FY24 performance demonstrates resilience and stability, underpinned by our impactful premiumisation strategy which delivered an upward trajectory in the second half of this fiscal (January – June 2024). We’re lapping two historic years, a complex geopolitical landscape and ever-changing consumer trends, yet still delivering on our strategic vision, owing to our broad and balanced footprint.
“We are also leading from the front when it comes to sustainability in our industry, making significant investments that ensure we can meet our ambitious environmental targets while increasing capacity to meet the global demand for Scotch whisky.”
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