Pernod Ricard buys Malfy gin

Pernod Ricard has announced it is adding Malfy super-premium Italian gin to its growing portfolio of craft spirits.

The range of super-premium flavored gins are distilled by the Vergnano family in the Italian region of Moncalieri in Piedmont.

They contain local ingredients such as Italian Juniper, coastal grown Italian lemons and Sicilian blood oranges and pink grapefruits.

Malfy’s production currently stands at around 100,000 cases of gin bottles each year.

“This acquisition is true to our long-standing strategy of investing in brands with strong potential in growing categories,” said Christian Porta, the head of Global Business Development at Pernod Ricard.

“In line with the launch of our 'transform and Accelerate' strategic plan, we will continue actively managing our fantastic portfolio of brands.”

Elwyn Gladstone, founder of Biggar & Leith, which launched Malfy Gin in 2016, said: “We are excited to see Malfy Gin move to the Pernod Ricard family of brands. We believe that with their stewardship and expertise in building super-premium spirits brands, Malfy will continue to flourish.”

It will become the sixth gin in Pernod Ricard’s portfolio, which includes Beefeater, Seagram’s, Plymouth, Monkey 47, and Ungava.

The range is currently available in markets including Australia, the US, UK and Germany.

Premium brands drive sales for Pernod Ricard

Pernod Ricard is hoping its expansion into profitable premium brands such as Malfy, coupled with sustained demand for Martell cognac in China and cost cuts will drive sales growth and profits in 2019.

The company's 2018/19 nine-month sales climbed 6.3% to €7.18 billion driven by Martell Cognac and Jameson Irish whiskey.

Strategic international brands posted an 8% increase, driven by Martell, Jameson, Scotch whisky, Beefeater gin, Perrier-Jouët Champagne, and “strong price/mix”.

Speciality brands saw “continued strong development”, reporting a 14% increase that was attributed to Lillet apéritif, Monkey 47 gin, “higher-style” Irish whiskey and Altos Tequila.

The company is now targeting a rise of around 8% in profit from recurring operations for its 2019 financial year, at the top of 6-8% growth guidance it gave in February.