Industry
Business 15/10/2021

Seagram's runs out of stock in Spain as nightclubs reopen

The well-known gin brand is experiencing supply chain problems

2 min
A bottle of Seagram's gin

BarcelonaCoinciding with the month in which nightclubs and bars are reopening in Catalonia and many other areas, such as the Balearic Islands, and after over a year and a half closed due to covid restrictions, New York gin Seagram's has run out of stock in Spain. As ARA has learnt, the reason has not been the strong demand after pubs and nightclubs reopened, but supply chain problems experienced by industry worldwide and which this sector has not been able to dodge. "We are having difficulties transporting, like most companies," say spokesmen for the multinational in Spain, who point out that as stock arrives it is distributed. Spokesmen have not been able to specify what the delay is. Be that as it may, several nightclubs consulted by ARA have confirmed that the gin arrives in dribs and drabs.

Seagram's is part of the Pernod Ricard group, one of the most important in the world of spirits. In addition to Seagram's, the French group also has such well-known products as Beefeater, Malibu, Ballantine's, Ruavieja and Havana Club. Its two main competitors are Diageo, which has brands such as JB, Baileys, Moët Chandon and Smirnoff, and Bacardi-Martini.

It so happens that the multinational has carried out a campaign this week in Spain, coinciding this Wednesday with Hospitality Workers Day – a tribute to bars, restaurants and nightlife venues that bears the slogan Thank you #Hostelheroes, and which highlights "the strength and courage" that the sector has shown during the pandemic. The campaign consisted of placing commemorative plaques in establishments so that the effort made by the hospitality industry is not forgotten. "Although there have undoubtedly been some heroes in this pandemic, health workers, we also believe that there have been others, such as the hotel and catering industry, and that is why we want to recognise their efforts and resilience in the difficult time the sector has been going through", said Antonio Lillo, Pernod Ricard's commercial and institutional relations director in Spain, via a press release on Wednesday.

Sales recovery

This global supply crisis comes after the group closed the last fiscal year, which runs from July 2020 to June 2021, with a net profit of €1,3bn, a figure that almost quadruples the profits obtained the previous year. It also exceeded sales in 2019, that is, before the pandemic broke out, as the company revealed last month. Specifically, turnover increased by up to 4% over the previous financial year, reaching €8.8bn. Its two strongest markets, Europe and America, grew by 1% and 7% respectively, exceeding €2.5bn in Europe and €2.6bn in America. "The company has rebounded very strongly in fiscal year 2021 and exceeded 2019 levels. We expect this good sales momentum to continue," stressed the group's chairman and CEO, Alexandre Ricard.

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