Yahoo Finance Espresso martinis see a 'resurgence' as COVID-19 trends stick, Pernod Ricard exec says
Cocktail-making is stirring up "a real resurgence," according to Pernod Ricard (RI.PA) North America CEO Ann Mukherjee.
With consumers staying home during the COVID-19 pandemic, at-home cocktail making became popular, Mukherjee told Yahoo Finance. Top of the list: chocolate and espresso martinis.
"We saw that comeback [of espresso martins], actually, even within COVID as we saw a lot of in-home cocktail-making...people enjoyed them at home and now they want to enjoy them in the restaurants," she said.
Mukherjee said the trend is "really great" for Pernod Ricard, known for brands like Absolut and Kahlua.
And it seems like consumers are willing to pay for the price for a well-crafted cocktail and a toast. According to the March 2022's Consumer Price Index from the U.S. Labor of Statistics, prices of alcoholic beverages increased by 3.7 percent compared to March of 2021.
Mukherjee said that "consumers are willing to understand" price increases as supply chain and inflation headwinds take a toll across the globe.
"It is structural. It is global ... We're seeing some pricing actions across not only our business but the entire industry," Mukherjee said.
Pernod, she said, is only passing on "real cost increases" and watching the situation "very, very carefully."
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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