Chivas Brothers HY organic net sales +23% as portfolio elevation and premiumisation strategy continues to take effect

GLASGOW,Scotland,Feb. 16,2023 -- Chivas Brothers,the Pernod Ricard business dedicated entirely to Scotch whisky,today announced its half-year (HY23; July 2022 – December 2022) performance with organic net sales up +23% compared to HY22.

This strong performance is due to its strategic focus on portfolio elevation and premiumisation – two-thirds of the +23% growth is driven by price/mix -- along with the strength of its global footprint. Its key strategic brands Chivas Regal,Ballantine's,Royal Salute and The Glenlivet each experienced double-digit growth.

Chivas Brothers' extensive and balanced global footprint has enabled this growth,with emerging and mature markets growing at +24% and +22% respectively,and expansion across all key regions. Consistent with recent years,performance in Asian and Latin American markets continues to be exceptional,with Korea,Japan and Taiwan up +59%,+53% and +37% respectively,while Brazil,Colombia and Mexico saw increases of +40%,+30% and +21%. In European markets,Spain rose +17% and Poland +7%,and separately North America +6%.

This heightened demand also supports its continued investment in the elevation of the Prestige portfolio (+28%). Specifically,Ballantine's Prestige range grew +81% owing to increased demand across Asian markets and Global Travel Retail (GTR),while The Glenlivet's top-line performance was driven by its Prestige expressions.

Chivas Brothers' Chairman and CEO,Jean-Etienne Gourgues,commented:

"These positive results reflect the impact of our long-term portfolio elevation and premiumisation strategy. It's a testament to the resilience of Scotch,its bright future and our continued drive to open up the category to new audiences."

Performance across strategic brands

Chivas Regal

The continued popularity of Chivas 12 and 18,the brand's emerging and mature market growth balance as well as the release of innovations such as Chivas Extra 13 have contributed to the positive brand performance of +34%.

Ballantine's

As a result of the very strong pricing and premiumisation strategy,Ballantine's global sales rose +17%,which was drawn from innovations such as Ballantine's 7 and American Barrel 10 Year Old,as well as the growth of its Prestige portfolio.

Royal Salute

The globalisation of Royal Salute and its continued diversification has led to increased enthusiasm for the brand,resulting in a +37% sales growth. Key product drivers were the hero 21YO collection,alongside market and channel exclusives. Notably,Royal Salute grew within the key regions of Asia +39% and Americas +38%.

The Glenlivet

The Glenlivet continued to increase its value share with +12% global growth as a result of value strategy and pricing,coupled with the healthy performance of the Prestige range. Asia was its #1 growth contributor by region,with rest of world also accelerating.

About Chivas Brothers

Chivas Brothers is the Pernod Ricard business dedicated entirely to Scotch whisky. Its award-winning portfolio features some of the world's most revered single malt and blended Scotch whisky brands,including Chivas,Royal Salute and The Glenlivet,which are exported from Scotland to over 100 countries worldwide. The world's No.2 Scotch whisky producer,Chivas Brothers and its 1,600-strong team across 26 sites is committed to upholding the heritage and pursuing the progress of Scotch and ensuring its sustainable future,as well as opening it up to new audiences across the globe. Chivas Brothers was awarded 'Scotch Whisky Producer of the Year' at the International Wine & Spirits Competition 2021 and the 2020 & 2021 & 2022 International Spirits Challenge.

For more information about Chivas Brothers,please visit www.chivasbrothers.com