Marie Brizard Wine & Spirits reports net sales in the Americas for all of 2017 slipped 5.1%, but rose 10.8% in the fourth quarter.
It attributed the fourth quarter Americas sales increase to a plan instituted in the third quarter. “Growing distribution led Sobieski to out-perform the market, with a volume increase of +2.8% in control states in 2017 (through the month of November), versus +2.3% growth for the total vodka market over the same period,” the company said, citing statistics compiled by the National Alcoholic Beverage Control Association (NABCA).
Marie Brizard and Cognac Gautier also turned in positive performances in the U.S. during the year, the company said.
It added that although underlying positive trends for Sobieski are expected to continue, the launch of Sobieski’s new bottle in the United States during this year’s second quarter “may cause a sell-in delay during the first quarter of the year due to the phasing out of the old Sobieski bottle. ”
For the Paris-based company as a whole, world wide net sales eased 0.4%, largely thanks to problems in Poland. “Our Polish subsidiaries have faced significant difficulties. Some
of these challenges were identified previously and led to the establishment of corrective action plans in Q3 2017, as announced last November,” said Jean-Noël Reynaud, CEO.
“Market conditions in Poland have led to a sharp increase in trade support and to the discovery of deficient internal processes for committing to and controlling trade support. A new General Manager has been put in place in Poland, with the main objective of overhauling and executing the business plan of our Polish subsidiaries, he said, adding:
“These difficulties lead us to expect a 2017 EBITDA on the order of €-6.5m, largely
impacted by the performance of MBWS’ Polish businesses. The objectives as set forth in the BiG strategic plan are under evaluation in light of the Group’s performance in Poland, and will be addressed in the press release to discuss FY 2017 results.
“Some of the measures disclosed in November have begun to drive encouraging progress, particularly in the United States, with the Americas cluster reporting +10.8% net sales growth in Q4, and in France where our pillar brands continue to gain market share,” Reynaud said.