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Pernod Ricard to Cut Costs as Distiller’s Key Brands Suffer

  • Cognac maker aims for EU400m of savings through fiscal 2020
  • Sales of Absolut, Chivas Regal decline 4% on organic basis

Pernod Ricard SA, the world’s second-largest distiller, plans to cut costs by 400 million euros ($446 million) after sales of Absolut vodka and Chivas Regal whisky declined amid weakness in Asia.

The company is also reorganizing its business in China to add a dedicated salesforce for premium brands and it’s trying to speed decision-making in the U.S. through a new structure, Pernod said Thursday. The stock rose 1.9 percent to 104.90 euros as of 11:44 a.m. in Paris.

Pernod Ricard is seeking to sell more Chivas Regal to the emerging middle class in China after a four-year government campaign against graft and extravagant spending eroded the market for high-end cognac. While full-year profit met analysts’ estimates, sales of Absolut and Chivas Regal, two of its...


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