Drinks group Pernod raises prices in Britain due to Brexit

Pernod Ricard raised the prices of its spirits in Britain earlier this month to protect margins against a slide in the pound stemming from the country's vote to leave the European Union, according to company slides released ahead of an analyst call.

Pernod, the world's second-biggest spirits group behind Diageo, did not detail the scope of the price hikes. The company is hosting a call on its European, Middle Eastern, Africa and Latin American businesses later in the day.

“Brexit is leading to a strong pound depreciation, with inflation expected higher as a reaction. In that context, Pernod Ricard increased prices in March,” the slides said.

Pernod, which owns Irish Distillers, had previously reported that sales in Britain rose 7 per cent in the first half of its 2016-2017 fiscal year, as a 9 per cent rise in international spirits sales and a 6 per cent rise in wines more than offset a decline in champagne sales.