French drinks giant Pernod Ricard is making significant strides in the American whiskey market with the establishment of North American Distillers (NADL), a new global brand company dedicated to its American whiskey portfolio. This move represents the next phase in Pernod Ricard's commitment to the burgeoning American whiskey sector, where the company has already made substantial investments.
Leadership and Vision
Leading NADL is Richard Black, a seasoned Pernod Ricard executive with 23 years of experience. Black's extensive background includes significant roles at Chivas Brothers and, most recently, as the global marketing director for Martell Cognac in Paris. In his new role, he will oversee NADL's entire American whiskey portfolio as well as the company's North American operations sites. His expertise and leadership are expected to drive the company's ambitious goals forward.
Black expressed his enthusiasm for the dynamic American whiskey market and the immense growth potential of Pernod Ricard's portfolio. "Our investments in Jefferson’s, Rabbit Hole, Smooth Ambler, Skrewball, and TX underscore our ambitious commitment," he said. "My mission is to harness this potential and drive a singular focus on these brands and our operations, creating a top-tier marketing and sustainable operations team on the back of our peoples' deep-rooted expertise."
Brand Portfolio and Major Projects
Pernod Ricard's American whiskey brands under the NADL umbrella include Jefferson’s, TX, Rabbit Hole, Smooth Ambler, and the unique peanut-butter flavored Skrewball. One of the most significant projects for NADL will be the opening of Jefferson’s new carbon-neutral Bourbon distillery in Kentucky. This state-of-the-art facility is currently under construction and is estimated to cost around $250 million. The distillery is expected to set new industry standards for sustainability and operational excellence.
Structure and Strategy
NADL aims to prioritize operational excellence, focusing on safety, quality, and sustainability. The company will follow a structure similar to Pernod Ricard’s successful Irish and Scotch whisky divisions, Irish Distillers and Chivas Brothers. This approach involves leveraging the company’s global network to stimulate growth and ensure a robust marketing strategy for its premium American whiskey brands.
The formation of NADL marks a significant evolution from Pernod Ricard's previous efforts in the American whiskey market. The company initially launched its American whiskey portfolio as an independent unit incubated within Pernod Ricard USA. With recent substantial investments in this thriving category, the decision to form a global brand company aligns with Pernod Ricard’s growth ambitions and reflects its long-term commitment to the American whiskey sector.
Operational Excellence
Supporting Black in these efforts will be a team of seasoned professionals. Pierre Joncourt, the current senior vice-president of operations for Pernod Ricard North America, will lead the operational charge. On the whiskey and marketing front, Kaveh Zamanian, founder of Rabbit Hole whiskey and a Bourbon Hall of Famer, will take on a new role, guiding the liquid strategy for NADL’s entire North American whiskey portfolio. This experienced team is expected to drive the company's operational excellence and sustainability goals.
NADL’s focus on operational excellence includes overseeing the highly anticipated Jefferson’s distillery project in Kentucky. This distillery is poised to set new industry standards with its commitment to carbon neutrality and sustainability. The project is a testament to Pernod Ricard’s dedication to innovation and environmental responsibility in the spirits industry.
Market Potential and Global Reach
The timing of this initiative is particularly opportune, as American whiskey continues to gain popularity both domestically and internationally. In 2023, American whiskey accounted for 63% of all US spirits exports and saw a 3.8% increase in value within the US market. This growing demand underscores the potential for NADL to significantly impact the global whiskey market.
Recent events, such as masterclasses hosted by the Distilled Spirits Council of the US (Discus) in the UK, highlight the increasing global interest in American whiskey. NADL is well-positioned to capitalize on this trend, leveraging Pernod Ricard’s extensive global network to stimulate growth and expand the reach of its premium American whiskey brands.
Historical Context and Future Prospects
This strategic move by Pernod Ricard aligns its American whiskey operations with its global operations structure. The formation of NADL follows the establishment of The American Whiskey Collective in 2022, which was created to drive the growth of Pernod Ricard's American whiskey brands. The creation of NADL represents a significant investment in the future of American whiskey and a strong commitment to innovation, sustainability, and market expansion.
With a seasoned leadership team and a clear focus on operational excellence and sustainability, NADL is well-positioned to advance Pernod Ricard’s ambitions in the American whiskey market. The company's strategic investments and innovative projects are expected to drive future growth for its premium brands and solidify its position as a leader in the global spirits industry.
In conclusion, Pernod Ricard's establishment of North American Distillers represents a bold and strategic move to harness the growing potential of the American whiskey market. With a strong leadership team, a focus on sustainability, and a commitment to operational excellence, NADL is set to drive significant growth and innovation in the spirits industry.