JWN annual rum sales flirting with pre-pandemic levels
Published:Sunday | March 6, 2022 | 12:08 AM
Annual rum and spirits sales for the brands owned by Campari in Jamaica grew last year, but revenue remained just below pre-pandemic levels.
Jamaica registered overall sales growth of 16.5 per cent relative to 2020 but was, basically, flat relative to 2019. The sales figures reflect local consumption and do not include exports.
The local operations that fall under J. Wray & Nephew Limited (JWN) racked up revenue of €108 million in 2019, but the pandemic erased a substantial amount of the spirits market, carving down sales in 2020 to €91 million.
Sales recovered last year to €106 million. Of note, the HY2021 sales, January to June, were above the comparative levels in 2019 and 2020.
Campari Group said in its newly released annual report that JWN experienced “strong growth thanks to continued recovery in the on-premise driven by both domestic trade and international tourism recovery”. On-premise consumption relates to drinking at bars and restaurants while off-premise encapsulates liquor bought from supermarkets and other retailers and consumed by households and other groupings.
Campari noted that JWN’s sales growth would have been 28 per cent in 2021 were it not for the local currency depreciating against the euro, the Italian company’s functional currency. In other words, sales would have likely surpassed pre-pandemic levels without currency depreciation. Campari translated earnings from Jamaica using an averaging rate of $178.34 to the euro in 2021 and $162.60 in 2020.
At the group level, Campari’s annual sales grew 25.6 per cent to €2.17 billion, while profit climbed from €188 million to €285 million.
For 2022, the outlook for the spirits sector remains sombre.
“Regarding profitability, whilst we continue to leverage price increase opportunities to mitigate cost headwinds, the temporary input costs pressure is expected to further intensify during the current year, mainly packaging, raw materials, including agave, and logistics, hence postponing the gross margin accretion,” the Italian company said.