NEWS
PERNOD RICRAD KOREA’S H1 PROFIT SLUMPED 71.6% AS AFTER WORK DRINKING FADES
By Staff Reporter
28-8-2026
Credit: Sava Bobov/Unsplash
Pernod Ricard Korea has reported a dramatic slump in half year earnings, as deep seated changes in local drinking habits and soft on‑premise consumption hammer profitability for imported premium spirits in South Korea.
Corporate filings submitted to South Korea’s Digital Analysis of Receipts and Transfer (DART) system show the French spirits group’s Korean subsidiary recorded a 71.6 percent year‑on‑year plunge in operating profit, falling to WON15.1 billion (USD11.44 million), compared with WON53.2 billion in the prior comparable period.
Net profit tumbled even more severely, dropping 86 percent to WON5.7 billion. Total revenue also contracted by 31.1 percent over the six‑month window, reflecting broad based volume pressure across its core whisky portfolio including Ballantine’s, Royal Salute and Chivas Regal.
Industry analysts point to structural consumer shifts rather than purely cyclical headwinds. South Korea’s long standing corporate after work drinking culture continues to fade, reducing repeat on trade sales for high end imported whiskies in bars and restaurants, once the most profitable channel for global spirits players operating in the market.
Post pandemic behavioural changes have seen fewer workplace gatherings, with consumers also growing more price conscious amid subdued household spending sentiment.
Pernod Ricard Korea is not isolated in the downturn. Rival Diageo Korea has also posted steep profit contraction and rolled out voluntary redundancy schemes to realign its cost base amid shrinking premium spirits demand, signalling sector wide pressure for foreign liquor operators in the country.
The French parent group noted in its global earnings materials that South Korea went through a significant market reset, though it flagged sequential improvement, with local operations returning to growth in later quarters supported by festive season demand.
Even so, the first half figures lay bare how rapidly margins have eroded for imported premium spirits, a category that enjoyed strong expansion only a few years ago.
Against the difficult domestic backdrop, Pernod Ricard Korea is reviewing commercial strategies, balancing brand investment with tighter cost discipline.
The subsidiary continues to run responsible drinking campaigns while adjusting channel mix, placing greater focus on off trade retail and travel retail segments to offset on trade losses.
While duty free sales have shown signs of recovery, the broader domestic spirits landscape remains challenging.
Market watchers say foreign suppliers will need to adapt to softer whisky consumption patterns, diversify product offerings and recalibrate pricing expectations to stabilise Korean performance over coming periods.
(the writer can be contacted at: info@thewinechronicle.com)
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