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Pernod Ricard’s Scotch whisky arm Chivas Brothers returned to development in fiscal 2021, and is aiming to proceed this momentum by means of a brand new luxury-focused technique focusing on youthful customers.
Chivas Brothers launched its full-year 2021 outcomes earlier in the present day, reporting an natural gross sales improve of 6% for the interval.
The Scotch whisky agency’s efficiency contributed to Pernod Ricard’s total organic sales growth of 9.7% in FY21.
Whereas dismal world journey retail gross sales offered challenges for Chivas Brothers, its efficiency was bolstered by sturdy gross sales in Asian markets, with China rising by 47%, Taiwan growing by 20% and South Korea climbing by 46%.
In Jap Europe, Poland and Russia thrived, leaping 19% and 17% respectively; the US noticed 19% gross sales development; and Brazilian gross sales soared by 60% to surpass pre-pandemic ranges.
Model breakdown
Talking at a press convention, Jean-Etienne Gourgues, the brand new Chivas Brothers CEO and chairman, stated that Scotch whisky is “very closely uncovered” to the struggling world journey retail market, which was mirrored within the performances of a number of key manufacturers.
Blended Scotch Royal Salute was down 6% total, although the agency famous ‘notably sturdy’ leads to China, South Korea and the US.
Ballantine’s, one other mix, posted 1% natural gross sales development.
The Glenlivet was the star of the Chivas Brothers steady in fiscal 2021, with gross sales climbing by 19% because of success within the US market and the uptake of latest product The Glenlivet Caribbean Reserve.
Lastly, Chivas, the enterprise’ flagship blended Scotch, reported modest development of three%.
Concentrating on the ‘hustle technology’
To keep up its momentum from fiscal 2021, Chivas Brothers has launched a brand new “future-forward technique” to enchantment to a youthful demographic.
“We’ve got ambitions to be one of many main luxurious spirit manufacturers within the twenty first century,” stated Nick Blacknell, world advertising director.
“Right here at Chivas we’re focusing on a youthful technology of customers. We name them the ‘hustle technology’. They’re largely drawn from Gen Z and younger millennials, and so they’re hungry for status-driven spirits.”
The agency has kicked off the luxury-oriented technique with a brand new search for its Chivas 12 bottling, and can replace extra merchandise in its portfolio all year long.
The Chivas 12 redesign is concentrated on sustainability, which Blacknell stated is a major concern for youthful customers: “[Sustainability] can’t simply be in regards to the communication and messaging, it additionally needs to be mirrored within the packaging,” he defined.
The brand new lighter bottle saves greater than 1,000 tonnes of glass per 12 months, and the outer packaging is recyclable. The bottle’s label, signature crest and outer field design have been revamped, as nicely.
Sustainability focus
Past packaging updates, Chivas Brothers has additionally set the aim of reaching net-zero distillation by 2026, forward of the Scotch whisky industry’s 2040 target.
As a step on this course of, the agency’s Braeval distillery, which produces a core single malt part of the Chivas mix, has switched to bio-fuel and turn into the enterprise’ first zero direct carbon distillery.
Earlier this 12 months, unbiased Scotch producer Nc’Nean grew to become the primary distillery within the UK to gain net-zero status.