Paris-based Marie Brizard Wine & Spirits (MBWS) saw sales rise 3.9% in the first nine months of 2020 after a decline in Europe was offset by growth in the Americas.
Sales for the nine-month period to 30 September 2020 were valued at €126.8 million (US$148.6m). During its third quarter, MBWS saw sales drop 2.4% compared with Q3 2019 to €40m (US$46.8m) as a result of declines in Europe, the Middle East and Africa.
At the end of September 2020, revenue for the Americas cluster reached €15m (US$17.6m) for the first nine months of 2020, up 20.8% compared with 2019. The third-quarter revenue amounted to €3.8m (US$4.5m) for the cluster, a 1.6% decrease after a “very robust” H1.
In the US, sales were driven by the start of a new distribution partnership with Sazerac at the beginning of the year. Good performances in Brazil during Q3 were said to be the result of a local product launch and the introduction of new brands in the market.
Revenue from MBWS’s other businesses was also up 55.7% in the third quarter, driven by bulk alcohol sales in Lithuania.
Sales in Asia Pacific also increased during the nine-month period and were up 8.9% to €2.1m (US$2.5m). After strong H1 sales, MBWS said there was a slowdown in the third quarter.
Despite gains in Asia and the Americas, sales in Western Europe, Middle East and Africa (WEMEA) dropped 10% to €66.1m (US$77.4m) in the nine-month period and were down 10% to €22.3m (US$26.1m) in Q3. The region was impacted by a 10.5% drop in sales in France, which was described as “a highly promotional and competitive spirits market”.
Sales in the on-trade across WEMEA were also impacted by the pandemic, and dropped 8.1% to €4.1m (US$4.8m) in Q3.
Revenue in Central and Eastern Europe was also down, falling 9% to €17.3m (US$20.3m) for the first nine months of 2020. Sales dropped 13.2% in Q3 to €6m (US$7m) due to declining volumes and sales in Lithuania as a result of the “termination of non-profitable commercial contracts and the ongoing reorganisation of the portfolio”.
Looking ahead to Q4, MBWS said Covid-19 could “prove to be more restrictive again in the coming weeks”, and as such the firm “remains cautious about the outlook for the year”.
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Author: Owen Bellwood