Pernod Ricard Tries To Get Ahead of Looming Russian Embargo
By Richard Thomas
Fearing that they too will see Russian authorities lash out at their products as Jack Daniel’s and Kentucky Gentleman were, Jameson owners Pernod Ricard are stockpiling Jameson Irish Whiskey in Russia. Said Pierre Pringuet, CEO of Pernod Ricard, “We are importing as much as we can for our [Russian] inventories because an embargo or retaliatory action could happen any time.” They are also stockpiling other products in the company portfolio, including Ballentine’s blended scotch.
Jameson and Ballentine’s are products of Ireland and the United Kingdom respectively, and both are members of the European Union (EU). Along with the United States and other Western countries, the EU has been leveling sanctions against Russia in retaliation for its involvement in the rebellion in eastern Ukraine, starting the cycle of tit-for-tat economic retaliation that has already struck at Jack Daniel’s and Kentucky Gentleman.
Russia is a fast growing market for Jameson, with a rise in sales of 4% last year, ranking third after the United States and South Africa. Irish whiskey is, in turn, the fastest growing part of Pernod Ricard’s drinks portfolio.
The French-based drinks giant is trying to get ahead of an official or unofficial embargo, but whether stockpiling whiskey in Russia is the wisest course of action remains to be seen. Kentucky Gentleman and Jack Daniel’s were targeted by a Russian agency tasked with regulating food purity rather than formally embargoed. Rumors circulated that Russia, one of the world’s most corrupt countries, would confiscate all stocks of those whiskeys. Although that hasn’t happened yet and may not transpire, the talk should be worrisome, as warehouses filled with the world’s most popular Irish whiskey would make a tempting target.
