Pernod Ricard is looking to expand its tequila range, possibly through acquisition, the French drinks group's CEO for Europe, the Middle East, Africa and Latin America has said.
Gilles Bogaert told investors during a presentation that tequila was a key spirits category for the group, which has been targeted by activist investor Elliott.
"We do not discount adding new brands to the [tequila] portfolio. We want to reinforce the weight of the tequila business in Pernod Ricard's portfolio," Bogaert said.
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Pernod Ricard's portfolio of tequila, which is made from the blue agave plant, ranges from ultra-premium Avion, premium Altos and standard Plus Olmeca to a majority stake in Mexico's Del Maguey Single Village Mezcal.
Mexico and the United States are tequila's top two markets.
"Well-Positioned To Keep Delivering"
The EMEA-LATAM business, which generates 28% of group sales, is "well-positioned to keep delivering" with good top-line growth and margin improvement, Pernod Ricard said in slides released ahead of the call with investors.
The business achieved sales growth of 6% in the first quarter of the 2019/2020 financial year, driven by a rebound in western Europe, strong growth in Russia and demand for whisky brands in emerging markets.
Pernod Ricard posted a 1.3% rise in first-quarter underlying group sales amid weakness in duty free purchases.
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