Cocktail making evokes “a real resurgence” according to Pernod Ricard (RI.PA) North American CEO Ann Mukherjee.
As consumers stayed home during the COVID-19 pandemic, cocktail making at home became popular, Mukherjee told Yahoo Finance. Top of the list: chocolate and espresso martini.
“We saw it comeback [of espresso martins]In fact, even within COVID, when we saw a lot of cocktail making at home … people enjoyed them at home, and now they want to enjoy them in the restaurants, “she said.
Mukherjee said the trend is “really big” for Pernod Ricard, known for brands like Absolut and Kahlua.
And it seems that consumers are willing to pay for the price of a well-made cocktail and a toast. According to the March 2022 Consumer Price Index from US Labor of Statisticsincreased the prices of alcoholic beverages by 3.7 percent compared to March 2021.
Mukherjee said “consumers are willing to understand” price increases as the supply chain and inflation headwinds take a toll across the globe.
“It’s structural. It’s global … We’re seeing some pricing actions across not just our business but the entire industry,” Mukherjee said.
Pernod, she said, only passes on “real cost increases” and sees the situation “very, very carefully.”