Jägermeister sales bomb: ‘Extremely aggressive’ US pricing hits herbal liqueur

Despite ‘relatively stable’ sales (the company does not break out numbers) in Germany, where the spirit is distilled, Mast-Jägermeister revealed yesterday there had been a significant decrease in US sales due to the “huge number of new products, extremely aggressive pricing by competitors and changing consumer trends”.​

These factors conspired to produce a very difficult market environment, the company said, with lower sales for the world’s most famous herbal liqueur – which is produced according to a secret recipe of 56 herbs and spices – and stock adjustments.

Accordingly, global sales of Jägermeister fell 5.6% in total last year from 87.1m 700ml bottles to below 2012 levels. In 2013 Mast-Jagermeister posted its strongest sales to date, shifting 92.2m bottles.

However, a 4% increase in sales across its remaining international markets allowed the company to temper the US decline – sales rose by 30%+ in Spain and 40%+ in France, underlining the importance of these markets in Western Europe.

After establishing its first overseas distribution hub in the UK last May, and airing its first TV advertising campaign there last February, the company said it had grown its business since to achieve record sales of six million bottles.

Mast-Jägermeister cited Hungary, the Czech Republic and Romania as key territories within Eastern Europe, where sales rose 25% in 25.

Key emerging markets for the brand include Brazil, Peru, Japan, South Africa and the UAE, the company said, while it posted double-digit growth through travel retail sales due to a growing presence at major airports in Paris, London, Frankfurt, New York, Sydney and Singapore.

The company says it plans to invest €20m+ in the infrastructure of its production and bottling facilities in Wolfenbuttel over the next three years.

More to follow…