After the integration of Absolut vodka brand in the portfolio of Pernod Ricard Romania, the importer's market share will expand to almost 30% and the company will rise to the leading position among importers.
"For Pernod Ricard Romania, Absolut perfectly integrates into the portfolio. We'll develop a portfolio strategy similar with that for whisky. Wyborowa on the mainstream segment, Absolut on the medium segment and Exquisite on the super-premium segment. With the integration of Absolut vodka, Pernod Ricard becomes the leader of the market of imported alcoholic drinks, with a market share rising to 30%," stated Tudor Furir, general manager of Pernod Ricard Romania.
Pernod Ricard, the world's second biggest producer of alcoholic beverages, in late March acquired Vin & Sprit (V&S) company from the Swedish government for 5.28bn euros. In the wake of this acquisition, the French company gained the Absolut vodka brand.
Domestically, Absolut vodka, part of Cristalex' company portfolio for the time being, generated annual sales of 200-250,000 litres or 13% in the importer's turnover, that is around 2.5m euros, according to ZF estimates. However, Dan Ursu, general manager of Cristalex, does not believe the exit of this brand from the company's portfolio will have any negative effects.
For Pernod Picard, though, the future importer of the brand, the move is of particular importance, in the context where the domestic arm of the French company already held a solid position on the whisky segment, with Chivas, and on the gin segment, with Beefeater, but did not hold a strong vodka brand.
Vodka imports cover less than 1% in overall domestic sales on this segment, but the impact of some brands such as Finlandia or Absolut over domestic importers' image is significant. Vodka sales topped 80m euros (269.6m RON) last year, up 13% in RON, while volumes fell by almost 8%, according to a survey by Nielsen market research firm.
The market is dominated by domestic producers, Prodal and Scandic Distilleries, a company part of European Drinks, Alexandrion Group Romania, Prodalcom Botosani and Prodvinalco Cluj.
Pernod Ricard last year generated turnover worth 68m RON (20.3m euros), 78% higher that in 2006. "The increase came on the integration of Allied Domecq brands in July 2006 and on the organic growth of brands included in the portfolio. The whisky segment is the most important growth driver. Another important factor is that the company has a complete portfolio, with brands in all the important categories. The portfolio strategy was an important driver of 2007 growth," explained Furir.
The company ended the first three months of this year on 70% higher turnover compared with the same period of last year. "For 2008, we expect turnover to rise by 40-50%, not including Absolut sales (...)," said Furir.
Pernod Ricard
Following the integration of Absolut vodka brand, will see its market share surge to almost 30% and take it to the leading position among importers
The acquisition of Absolut is of particular importance for the company as it already held important positions on the whisky and gin segments, but did not have a strong vodka brand
Last year generated turnover worth 68m RON (20.3m euros), 78% higher that in 2006
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