Pernod Ricard's US sales fall sharply as China stays weak

Pernod Ricard, owner of Jameson, Absolut and a wide portfolio of premium spirits, reported that US sales fell 14% from a year earlier, according to Robb Report. The group also flagged a continued slowdown in China. The two markets have long been central to the premiumisation story that spirits groups used to justify years of price increases and margin expansion, so weakness in both at once is a harder problem than a regional soft patch.

The US decline reflects a broader hangover in American drinking habits after the pandemic-era boom in premium spirits, with consumers trading down or simply drinking less as household budgets tighten and younger cohorts drink at lower rates than previous generations. In China, subdued consumer confidence and a crackdown on lavish gifting and entertaining have weighed on demand for imported spirits, echoing the pressure seen across cognac and luxury goods more broadly.

For Pernod Ricard, the combination raises questions about how much further destocking retailers and distributors will need before volumes stabilise, and whether the group's push into travel retail and emerging markets can offset the drag from its two largest markets. Rivals including Diageo have flagged similar pressures, suggesting an industry-wide reset rather than a company-specific issue. Investors will be watching whether pricing power in spirits, long assumed to be durable, is now eroding alongside the broader luxury slowdown.

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