Integrated Annual Report FY25

China

The macroeconomic and geopolitical environment remained challenging for China in FY25. Tariffs and anti-dumping investigations created an unpredictable environment for imported spirits characterised by volatility in import costs and potential disruptions to established trade flows. Despite these cyclical challenges, the outlook for the Chinese market remains positive, and is underpinned by several structural trends:

• The continuing expansion of China’s middle and affluent classes is fuelling greater purchasing power and appetite for premium goods.
• The diversification of consumer preferences, with growing interest in imported spirits, especially among younger consumers⁽¹⁾.
• Room for growth, with international spirits accounting for less than 1% of Total Beverage Alcohol.

As the leading international premium spirits player in China and number one in Cognac, whisky and white spirits, Pernod Ricard is uniquely placed to respond to these evolving market dynamics. We possess the most comprehensive portfolio of premium spirits in the market, allowing us to address a wide spectrum of consumer needs and adapt quickly to shifts in demand. In FY25, strong growth was seen in both the white spirits and the premium whisky brands, such as Absolut Vodka, Olmeca tequila, Monkey 47 gin and Jameson whiskey. The company’s strategy remains resolutely focused on long-term growth, brand relevance, and operational agility in the face of ongoing macroeconomic and regulatory uncertainties.