CHIVAS BROTHERS CONFIRMS STRONGEST FINANCIAL PERFOMANCE IN A DECADE WITH +17% GROWTH IN NET SALES

In light of growth, Chivas Brothers commits £60 million multi-year sustainability investment towards ambitious 2026 carbon neutral distillation goal

LONDON, Aug. 31, 2023 Chivas Brothers, the Pernod Ricard business dedicated to Scotch whisky, today announces its FY23 (July 2022 – June 2023) full-year performance with net sales up +17%, taking total sales to a ten-year high. The results demonstrate ongoing strong global demand for Scotch and reinforce the company’s long-term premiumisation strategy.

Alongside this positive growth, Chivas Brothers also announces more than £60 million in planned investment over the next three years to accelerate its energy and carbon reduction journeys to achieve carbon neutral distillation by the end of 2026. It follows the company’s move to make its heat recovery technology learnings open source for the industry, after proving successful at Glentauchers distillery, with a 53% reduction in carbon emissions at this site alone.

Historic highs for strategic brands in must-win global markets, including US and India

The growth of the company’s strategic brands has been enhanced by Chivas Brothers’ strong and balanced global footprint, underpinned by a demand for Prestige products, which have outpaced growth of the total brand portfolio over FY22 and FY23.

Chivas Regal celebrated global growth of +25%, with impressive performance in markets such as India and Japan. The brand’s success was driven by its core aged range, with Chivas Regal 18 the leading 18-year old blended Scotch globally by both volume and value in calendar year 2022 according to IWSR Drinks Market Analysis 2022¹. Chivas Regal was also the leading contributor to Pernod Ricard Group growth in FY23.

Ballantine’s grew by +13% in FY23, driven by particularly strong growth in its prestige range, which exceeded that of the total Prestige and Prestige Plus Scotch category, according to IWSR in 2022². Ballantine’s 21 and Ballantine’s 17 have been the key drivers alongside Ballantine’s Finest, with the Asia region excelling during this fiscal.

Royal Salute recorded a significant +32%, growing ahead of the Prestige and Prestige Plus Scotch category by both value and volume in 2022³, as the brand continues to elevate through exclusive luxury releases such as the Royal Salute Coronation of King Charles III Edition. It showed particularly strong growth in the US, along with double digit growth in core Asian markets including Korea, India and the Taiwan Market.

The Glenlivet continues its upward trajectory with +9% growth and was the best-selling single malt by volume in 2022, according to the IWSR⁴, setting the brand in strong stead for its 200 year anniversary in 2024. This has been driven by significant demand for its Super Premium and Ultra Premium ranges in an already competitive category, with balanced growth across the brand’s global footprint.

Specialty brand Aberlour, part of the broader Chivas Brothers single malt brand portfolio, also grew +11% in the highly competitive malts category.

Strength of footprint increasing across the globe

The Asia region has been particularly robust, with +21% growth in FY23, and the number one contributor to growth overall. India (+27%), South Korea (+19%), Japan (+28%) and Greater China (+7%) have also seen exceptionally strong performances and are driving demand with new Scotch audiences.

The North American market has seen stellar growth in a highly saturated market, with +8% growth. The US and Canada saw 8% and 7% growth respectively.

Safeguarding our future: Financial results unlock planned investment in sustainability and strategic inventory

Chivas Brothers’ financial results have supported its custodian role in shaping and protecting the future of whisky with a number of significant investments, including today’s announcement of more than £60 million in planned investment to implement heat recovery technologies and install electric boilers across viable distilleries.

While driving down its carbon footprint, Chivas Brothers will also invest in strategic inventory management, ensuring a future-fit model that continues to meet the demand for its Scotch whiskies around the world.

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

"The historic highs we’re seeing across our strategic brands signal the success of our premiumisation strategy which has enabled Chivas Brothers to outperform the market. Our highest growth of the last decade reinforces our position to shape the future of sustainable Scotch while continuing to meet demand. We have fast-tracked a number of sustainability initiatives to meet our own ambitious targets and remain committed to supporting the industry in ushering in this new era —as we demonstrated earlier this year by making our heat recovery findings open source."

About Chivas Brothers
Chivas Brothers is the Pernod Ricard business dedicated to Scotch whisky. Its award-winning portfolio features some of the world’s most revered single malt and blended Scotch whisky brands, including Chivas Regal, Ballantine’s, Royal Salute and The Glenlivet. As the world’s No.2 Scotch whisky producer which exports to 150 markets globally, Chivas Brothers and its 1,800-strong team are rooted in communities across Scotland and around the globe, sharing a proud history and the ambition to open up to shape the future of whisky. Chivas Brothers was awarded ‘Scotch Whisky Producer of the Year’ at the International Wine & Spirits Competition 2021 and the 2020, 2021 and 2022 International Spirits Challenge.

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

[1234] IWSR Drinks Market Analysis, 2022