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Pernod Ricard To Cut Jobs Because Of Chinese Slump

Published on Aug 28 2014 12:35 PM in Drinks

Pernod Ricard To Cut Jobs Because Of Chinese Slump

Pernod Ricard, the world’s second-largest distiller, plans to eliminate jobs as it seeks to generate €150 million of savings following a slump in demand in China.

The cuts, which represent about 900 jobs or 5 per cent of the Paris-based distiller’s workforce, are part of a program of measures to help the company operate more efficiently, chief executive officer Pierre Pringuet said today in a phone interview.

Pernod reported an 8 per cent drop in annual earnings as currency fluctuations and a Chinese government clampdown on conspicuous consumption weighed on revenue growth. Earnings before interest, taxes and some one-time items totaled €2.06 billion euro, the maker of Absolut vodka said. Analysts predicted €2.08 billion, the average of 18 estimates, according to data compiled by Bloomberg.

Irish Distillers Pernod Ricard CEO Anna Malmhake said the sustained progress of Jameson within the Pernod Ricard family of brands has been one of the group’s most eminent success stories, growing from 466,000 cases when Irish Distillers joined Pernod Ricard in 1988, to approaching 5 million cases in 2014.

Sales of Pernod’s so-called top 14 brands, which include Chivas Regal scotch and Kahlua liqueur, fell 2 per cent, dragged down by Martell cognac in China, Pernod said

Irish Distillers Pernod Ricard CEO Anna Malmhake said the sustained progress of Jameson within the Pernod Ricard family of brands has been one of the group’s most eminent success stories, growing from 466,000 cases when Irish Distillers joined Pernod Ricard in 1988, to approaching 5 million cases in 2014.

Bloomberg News, edited by Hospitality Ireland

 

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