HomeGroup|5 strategic pillars

Group

Co-leader in the Wines & Spirits sector worldwide, Pernod Ricard has established itself as number one in the Premium segment. It operates through 75 affiliates and has chosen to focus on sustainable growth through a large portfolio of international brands and a high-end strategy, known as Premiumisation.

5 strategic pillars

Pernod Ricard’s growth model is based on five strategic pillars: a portfolio of international Premium brands, two strategic focuses (Premiumisation and innovation), a decentralized organisation, a strong corporate culture, and a historical commitment to ethics, people and the environment.

5 strategic pillars

1. A COMPREHENSIVE PORTFOLIO OF PREMIUM INTERNATIONAL BRANDS

Since its beginning, and particularly over the last ten years of rapid acquisitions, Pernod Ricard has built a unique portfolio of Premium brands on an international scale.

This portfolio covers all Wine and Spirits categories and is now illustrated by “The House of Brands” concept.

The “House” classifies the Group's priority brands into three segments:
  • the ‘Top 14’, which includes 14 strategic spirits and champagne brands
  • the Wine segment, with its 4 priority Premium wine brands
  • 18 key local brands

 

The Top 14 is made up of:

  • 2 global icons: ABSOLUT Vodka and Chivas Regal Scotch whisky
  • 7 strategic Premium brands: Ricard pastis, Ballantine’s whisky, Jameson Irish whiskey, Havana Club rum, Beefeater gin, and Malibu and Kahlúa liqueurs
  • 5 strategic Prestige brands: Martell cognac, The Glenlivet and Royal Salute whiskies, and Mumm and Perrier-Jouët champagnes

 

2. PREMIUMISATION AND INNOVATION: TWO MAJOR FOCUSES FOR VALUE CREATION

Pernod Ricard's strategy is built on creating value through a systematic policy of upscaling its brands, called “Premiumisation”. This value strategy is part of a long-term vision based on strong and on-going investment in support of the Group’s brands. In 2011/2012, Premium brands represented 73% of net sales.

Pernod Ricard focuses on innovation as a driver of growth, and has one of the largest marketing budgets in the industry. In 2011/2012, the ratio of advertising and promotional expenditures amounted to 19.1% of net sales. Innovation is a priority in supporting the brands, but it also applies to all areas of the business: Sales, Human Resources, Production, Legal, Finance and Communications.

 

3. A DECENTRALISED ORGANISATION AND A WHOLLY-OWNED DISTRIBUTION NETWORK

Pernod Ricard’s organisation, unique in its industry, is built around 6 Brand Companies and 75 Market Companies.

Wholly-owned by the Group, the distribution network ensures a commercial presence that is closer to the markets and to consumer needs, allowing the global strategy defined by the Brand Companies to be tailored to local realities.
By its decentralised nature, this flexible and responsive structure has proven its ability to boost performance and individual motivation. Very well established internationally – Pernod Ricard is the leader in many Asian markets such as China and India – it is optimally positioned to take full advantage of the growth of these markets, which are the most dynamic of the sector.

 

 

4. Nearly 19,000 EMPLOYEES UNITED BY A STRONG CORPORATE CULTURE

In a decentralised organisation, it is the corporate culture that binds everyone together. This corporate culture is experienced as a real competitive asset, expressed in a convivial, simple and direct attitude. The nearly 19,000 employees of the group share in it every day, maintain it in their relationships with each other, and in their relations with the consumers of each brand. This Pernod Ricard spirit is conveyed by the tagline “Créateurs de Convivialité”.

The Group’s culture is grounded in three values:
  • an entrepreneurial spirit
  • mutual trust
  • a strong sense of ethics
These are continually encouraged by a policy of Human Resources management that promotes leadership skills, mobility and diversity.

 

 

5. AN HISTORICAL COMMITMENT TO ETHICS, PEOPLE AND THE ENVIRONMENT

There is no leadership without a deep sense of responsibility. This approach is historically rooted in the Group’s history and encoded in its DNA. The best evidence is its commitment to society, unchanged from its beginning nearly 50 years ago.

Formalised in a platform for Corporate Social Responsibility (CSR), this commitment takes concrete shape through four priorities:
  1. The responsible drinking policy
  2. Reducing the environmental impact
  3. Sharing cultures
  4. Promoting an entrepreneurial culture
For Pernod Ricard, its employees are the front-line ambassadors of these commitments.