Pernod Ricard attacks wine discounting
Pernod Ricard attacks wine discounting
Jun 13, 2011 6
Drinks giant Pernod Ricard has attacked retailers for offering wine at heavily discounted prices, saying the strategy is leading to erosion of sales. alking to The Sunday Telegraph, Pernod Ricard’s chief financial officer Gilles Bogaert said: “We're facing a decline in sales in wine. The wine business is less attractive than it used to be”.
His comments are backed up by figures from Euromonitor, which estimate that Pernod Ricard sold a litre of wine for an average price of £6.40 in 2005, compared with £5.95 in 2010.
"It's got into a vicious circle where consumers expect a discount," said Jeremy Cunnington, an analyst at Euromonitor. "It has been exacerbated for the past two to three years," he said.
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