Strategy
FOUR STRATEGIC PRIORITIES
Pernod Ricard’s success can be credited to its highly effective strategy which is based on four top priorities :
- concentrated investment in 15 key brands sold around the world,
- premiumisation of its brand portfolio,
- reinforced positioning in emerging markets with high growth potential
- continued focus on external growth.
TAKING ADVANTAGE OF NEW MARKET TRENDS
Pernod Ricard adapts its offer to respond to developments in the world market for wine and spirits, particularly the increase in luxury products observed in developed and emerging countries.
The market for spirits is marked by the following trends :
- stable global market in volumes but with an increase in value,
- a constant local spirit segment which represents the majority in terms of volume,
- expanding market for international spirits, led by thriving sales for vodka and scotch.
The global market for wine has also experienced major changes, including :
- an expanding world market for high-quality wines,
- the growing popularity of New World wines,
- the major role played by the American market and emerging countries in market growth.
In this context, Pernod Ricard has a significant advantage, especially in terms of its complete and varied brand portfolio for vodka, whisky and rum.
DOMESTIC AND EXTERNAL GROWTH
Pernod Ricard is a world leader in the market for wines and spirits.
Since its creation, the Group secured its leadership position through :
- strong internal growth,
- an ambitious acquisition strategy, demonstrated by the successful integration of Seagram in 2001 and Allied Domecq in 2005. The acquisition of the Swedish company Vin & Spirit (V&S) announced in July 2008 represents a decisive move for the Group.
As a result, Pernod Ricard has built up one of the most prestigious brand portfolios in the world.
'LUXURY IN A BOTTLE’
Since 2002, Pernod Ricard’s brand portfolio has included a growing number of top-of-the-range products, conferring a new status on to the Group as a key player in the luxury market.
- Shareholders, financial analysts and journalists recognise the capacity for this new strategy to increase sales and maximise profits. Pernod Ricard is now considered by investors as a major player in the upscale, prestige brand universe.
- The Premiumisation strategy adopted by the Group also meets the expectations of consumers who want to drink less, but better quality products. Elegance, a refined lifestyle and sophistication are the qualities most coveted by consumers.
- 1975: merger of the Pernod and Ricard companies
- 19,300* employees in more than 70 countries worldwide
- 112** production plants
- 19,300* employees in more than 70 countries worldwide
- 112** production plants
*Pernod Ricard Workforce, 30/06/2007; V&S, 31/12/2007.
**New scope consolidation
