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.
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 ‘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
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.
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”.
- an entrepreneurial spirit
- mutual trust
- a strong sense of ethics
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.
- The responsible drinking policy
- Reducing the environmental impact
- Sharing cultures
- Promoting an entrepreneurial culture