Chivas Brothers, the Pernod Ricard business dedicated to Scotch whisky, today announces its FY24 (July 2023 – June 2024) full-year performance with net sales down -1.6% compared to FY23, following a strong rebound in H2.
The results reflect a year of stabilisation against a record high comparison base, following two years of historic growth. After briefly softening in H1 (-6%, July – December 2023), the business returned to growth in H2 (+5%, January – June 2024) as favourable pricing movements across all strategic brands offset volume slowdown.
The Scotch whisky producer’s fiscal performance can partly be attributed to Pernod Ricard stopping all exports of its international brands to Russia at the end of April 2023. Excluding this market, Chivas Brothers’ net sales performance for FY24 was up +1.4% compared to FY23.
Premiumisation strategy pays off as Prestige whisky demand continues to strengthen
Chivas Brothers’ Prestige range grew ahead of the rest of the portfolio for the third year in a row, with Royal Salute achieving a historic high in absolute net sales[1] and an FY24 uplift of +5%. Royal Salute’s stellar performance was driven by its 21 Year Old Signature Blend as well as contemporary expressions such as the Miami Polo Edition, signalling that consumers are seeking high-end whiskies connected to bespoke, cultural experiences.
Broad and balanced global footprint drives resilience for key strategic brands
With a +12% CAGR[2] since FY21, Chivas Brothers demonstrates a strong growth trajectory, underpinned by its ability to weather temporary fluctuations in the global market due to its broad and balanced global footprint.
Ballantine’s capped the year at +1%, beating the market in 70% of its focused measured markets[3]. Despite a modest decline in net sales (-1.2%), Chivas Regal gained share in 50% of its focused measured markets3, while The Glenlivet’s exposure to North America resulted in a single-digit decline (-6%) in FY24.
At a regional level, Chivas Brothers saw positive performances in Western Europe (+5%) and throughout Asia, notably in Japan (+22%), while Greater China (-1%) continued to stabilise. Eastern Europe (-25%) performed at +8% excluding Russia, while pocketed downturn in domestic regions including North America (-19%) and Central and South America (-8%) are attributed to category softening. This was largely offset by continued expansion in Africa and Middle East (+35%), making it the number one contributor to growth overall in this period, with Turkey the standout performer. Finally, Global Travel Retail saw +4% growth, with strong performances from Ballantine’s, The Glenlivet and Royal Salute.
Continued investment in sustainability commitments
As part of its commitment to positively shape the future of Scotch, Chivas Brothers continues to take action across its business, investing in initiatives that reduce its carbon footprint and enable it to meet its sustainability targets:
- Chivas Brothers has reduced its carbon-intensity based emissions (measured as Scope 1 and 2 emissions per kilolitre of distilled alcohol) by 24%[4] (since baseline year 2018)
- Commenced mechanical vapour recompression (MVR) installation at its largest and only grain distillery, Strathclyde, in Glasgow, and completed installation at its Allt-A-Bhainne site (FY24)
- Along with Simpson’s Malt Limited and OCI Global, invested in a pilot programme using carbon-saving fertiliser, with potential to reduce the amount of greenhouse gas emissions created in the growing of barley and wheat for whisky production, by up to 20% (FY24)
Chivas Brothers Chairman and CEO, Jean-Etienne Gourgues, commented:
“Our FY24 performance demonstrates resilience and stability, underpinned by our impactful premiumisation strategy which delivered an upward trajectory in the second half of this fiscal (January – June 2024). We’re lapping two historic years, a complex geopolitical landscape and ever-changing consumer trends, yet still delivering on our strategic vision, owing to our broad and balanced footprint. We are also leading from the front when it comes to sustainability in our industry, making significant investments that ensure we can meet our ambitious environmental targets while increasing capacity to meet the global demand for Scotch whisky.”
[1] Historic high Net Sales based on organic constant FX and Reported Net Sales, at the prevailing FX rate
[2] Compound Annual Growth Rate or cumulating organic year on year net sales growth
[3] Focused measured markets refers to the brand’s strategic ‘must-win’ markets where market share data is available
