Unlocking the magic of human connection - by bringing Good Times from a Good Place
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Unlocking the
magic of human
connection
by bringing
Good Times from
a Good Place
I N T E G R AT E D
ANNUAL REPORT
FY22
Unlocking the magic of human connection by
bringing Good Times from a Good Place
Since the very beginning, Pernod Ricard has been
in the business of creating meaningful and lasting
moments of conviviality.
We believe in the power of bringing people together, and
the positive impact that comes from turning an occasion into
a convivial experience. That is why our mission is to unlock
the magic of human connection by bringing Good Times
from a Good Place. Together with our stakeholders, we are
Connecting around
our mission building enduring connections that will stand the test of time,
Our history → p. 12
united
Copies in ourarebelief that conviviality is what distinguishes life’s
of this document
available on request from the
Our decentralised exceptional
Group’s moments
Headquarters or it can from the rest.
organisation → p. 14
be downloaded from the Group’s
Our brand portfolio → p. 16
Our Mindset As “Créateurs de convivialité,” we distil conviviality
website (www.pernod-ricard.com).
Pernod Ricard is committed
for Growth → p. 18
Our strategy → p. 20
into everything we do. From programmes that empower
to responsibly managing its
paper purchases. The paper
Our growth model → p. 22 our employees, to products and experiences that delight
used for the Integrated Annual
Our foundations → p. 24
Our S&R roadmap → p. 26 our consumers. From sustainable initiatives to support
Report is PEFC certified.
This certification guarantees
Our value creation
model → p. 28 our planet to partnerships that inspire creation. Conviviality
compliance with a globally
recognised set of principles and
Our key financial and is the spark that ignites it all.
criteria for forest management.
non-financial figures → p. 30
Events organised by our brands
Our governance → p. 32
comply with local laws in the
In our FY22 Integrated Annual Report, learn how Pernod Ricard is:
countries where they are held.
Seizing a world of
opportunities
• unlocking convivial moments for our people, our consumers,
Please consume our
brands responsibly.
our planet and through our sponsorships;
Major trends in an evolving
world → p. 38 • placing Sustainability & Responsibility at the centre of our
Moments of conviviality
revisited → p. 46
THANKactivities
YOU TO ALL to ensure we have a lasting and positive impact;
OUR CONTRIBUTORS
• using technology and data to open more opportunities
Unlocking more Published by the Pernod Ricard
convivial moments and respond
Communications to more and new demands;
Department,
For our people → p. 50
• investing in creation and supporting mentorship through
5 cours Paul Ricard,
75380 Paris Cedex 8, France.
For the planet → p. 54 our latest philanthropic activities.
For consumers → p. 58
Our brands → p. 68
For sponsorship → p. 92
See why we believe in the magic of convivialité.
Director of Publication:
Charlotte Judet. Deputy Director
Exploring our shared of Publication: Emilie Roger-
Couffrand. Editor-in-chief:
performance
It’s time to unlock that magic…
Ashley Doyle. Photos Credits:
Message from Sandra Rocha, Perrine Géliot,
Hélène de Tissot → p. 106 Alexis Anice, Léa Guintrand,
Managing our risks → p. 108 Thomas Lannes, Eric Garault,
Our markets → p. 110 iStock, Getty Images, Shutterstock,
Performance Pernod Ricard Media Library.
indicators → p. 116 Creation, Design and
Financial markets → p. 120 Production:
3
Unlocking the magic of human connection by
bringing Good Times from a Good Place
Message from
Alexandre
Ricard Chairman & CEO
of Pernod Ricard
“Our
greatest
assets
are our
people.”
There’s something magical about spending or generational – and is open to everyone. of human connection by bringing Good
time with the people we care about. Simple, This is our company vision, our purpose, our Times from a Good Place in meaningful,
authentic moments of sharing, laughing and drive, and it’s what sets us apart from the rest. positive and responsible ways. This is
connecting. The pleasure of raising a glass our North Star, our guiding light, and I
together and toasting to new memories. Staying true to our culture and shared values don’t ever want us to lose sight of it.
Now, more than ever, we understand just how Our teams have once again shown that our An exciting transformational journey
important these moments are. We know what it greatest assets are our people who, together,
feels like to be without them. I strongly believe year on year, continue to go the extra mile in Our transformational journey started back
that if there is one positive outcome from the delivering sustainable growth with tangible, in 2015, when we focused on our collective
Covid-19 years it is that we have rediscovered positive impact. I’m immensely proud and mindset to grow our business. With the
the importance of filling our lives with real fortunate to be able to call them my colleagues. launch of Transform & Accelerate in 2018,
human connection for our own health and we concentrated on enhancing our profitable
well-being. For five decades now Pernod Ricard Our purpose as a Group is to do more than growth with an emphasis on efficiency
has been championing this universal need. As just sell the finest wines and spirits. As true and effectiveness. Our convivial culture is
“Créateurs de convivialité,” these moments of convivialists, we are moved by a common now complemented by a heightened
collective camaraderie are at the very heart purpose to transform every moment, every performance-driven focus built on
of what we do. Convivialité transcends our coming together, into a meaningful and our five cultural imperatives of Health,
differences – be they physical, cultural, ethnic convivial experience. We unlock the magic Safety & Wellbeing, Sustainability &
4 5
Unlocking the magic of human connection by
Message from Alexandre Ricard bringing Good Times from a Good Place
“Never before has our company
In a world that’s ever more polarised, crisis stronger than ever, and our results this 2.1 billion: that is the number of bottles that we
filled with rising political tensions, climate year are the reflection of all that hard work. produced and distributed last year at a global
change, energy and supply chain disruptions, The incredible shared success achieved by level for our more than 240 brands. It is an
inflation, unbalanced post-Covid recoveries, my more than 19,000 colleagues worldwide impressive figure, but it does not say enough about
been so sure about the displaced peoples and even war… never
has the solidarity and responsibility in our
Group been so heartfelt as it is today.
ensured we reached the symbolic double-digit
revenue figure, hitting €10.7 billion in net sales
for the first time. Additionally, two financial
the talent and commitment of my colleagues
who made these accomplishments possible,
under the most difficult and challenging context
change and impact we
milestones have been surpassed, with our Profit our industry has experienced for some time.
Arts Mentorship Programme from Recurring Operations at €3 billion and
our highest ever Free Cash Flow at €1.8 billion. Bringing our purpose to life
will make.”
Sustainability is also about building
long-lasting relationships. This year, we Absolut broke 12 million cases sold worldwide, If these last two years have taught us anything,
proudly launched our Arts Mentorship while Jameson broke 10 million and Ballantine’s it’s that there’s no one way to connect. So,
programme. Building on the Group’s founding 9 million. Indeed, our splendid portfolio of whether it’s a family gathered around a table
commitment to creativity, this programme Scotch whiskies grew by an impressive 25%, to celebrate a happy occasion, or friends
takes young artists and designers under its while Martell grew by 7%. These are just some both near and far catching up in person
wing and furthers our real desire to share, examples of the record sales of so many of or digitally, these irreplaceable bonds are
innovate and bring people together. This the brands across our unrivalled portfolio. now, and always will be, absolutely vital.
year, Sandra Rocha, mentor, and Perrine
Géliot, mentee, worked together to develop I am extremely proud to say that we have been This is the future we are crafting as more than
an international artistic project which able to ring the “double-digit growth” bell many 19,000 convivialists. Never before has our
was presented at the Rencontres d’Arles times this year, in markets across the Asian/Rest company been so sure about the change and
photography festival in France in July. of the World and European regions, which are impact we will make. We will do so by using my
both growing at an impressive rate of 19%. We grandfather’s motto to “make a new friend
Strong growth and financial trajectory have seen our “must win” markets continue to every day.” It is timeless advice. I invite each
progress, with the US reporting +8%, China +5% and every one of us to make a new connection
Despite increasing global challenges, I’ve and India a successful +26%, while Global every day, to make the world a more convivial
said many times over the past two years Travel Retail rebounded impressively as many place. Because there is no doubt that a more
that Pernod Ricard would come out of the parts of the world reopened post-Covid. convivial world is a better world for all of us.
Responsibility, Consumer-Centricity, For us, the end goal is not simply to leverage what we do. It is not only the right thing
Continuous Improvement & Innovation, data; it is to spread convivialité by leveraging to do for our planet, but it’s the legacy
and Diversity & Inclusion. data and artificial intelligence. Together we want to leave. Sustainability is vital for
with our diverse portfolio of amazing the resilience of our business, critical to
As we progress on our transformational journey brands and our unparalleled distribution attracting the very best people and decisive
with the next phase of Transform & Accelerate, network, The Conviviality Platform will for shaping the future of our industry.
technology, digital media and data will further enable us to offer the right product, at the
strengthen those foundations and stretch our right price, at the right time, to the right Our Sustainability & Responsibility roadmap
business performance to capture future growth. consumer, with the right experience for is on track to meet or even outperform
every occasion and in every market. the ambitious targets we set for ourselves.
“We reached the symbolic
Introducing The Conviviality Platform This year we became the first company
Sustainability at the core of our business to support the International Union for
Our ambition is to lead and shape industry Conservation of Nature’s Agriculture and
growth. This means challenging ourselves to Exactly 90 years ago, in the middle of the Land Health Initiative, in addition to also
double-digit revenue figure,
capture future growth opportunities and leading Great Depression, my grandfather founded completing our own inaugural sustainability-
the way in thought and action to transform one of the brands that gave birth to this Group. linked bond issuance for €750 million.
every moment into a convivial experience. His bold spirit and sense of responsibility led Pernod Ricard employees also had the
hitting €10.7 billion in net
him, years later, to also create the Paul Ricard chance to come together once again
This was precisely our goal when we unveiled Oceanographic Institute to help protect for the 10th annual Responsib’All Day, an
our enhanced growth engine, The Conviviality our oceans, one of his great passions. entire day dedicated to making a positive
Platform, which leverages digital media To this day, this commitment and sense impact in our communities. Our affiliates
sales for the first time.”
and data to expand and accelerate our of guardianship is stronger than ever, rolled up their sleeves and took on several
business, and thus bring our purpose to life. having woven sustainable and responsible community projects that help protect and
This is what I like to call precision at scale. thinking into the fabric of who we are and restore local nature and biodiversity.
6 7
Unlocking the magic of human connection by Year in review bringing Good Times from a Good Place 12.07.21 01.09.21 03.09.21 21.09.21 The Mx opened its doors in Marseille, offering a variety Pernod Ricard signed a minority stake investment in the US- Pernod Ricard became the first corporate partner of Pernod Ricard acquired The Whisky Exchange, a leading of fresh experiences built around the city’s emblematic based Sovereign Brands and its unique and diverse portfolio the Agriculture and Land Health Initiative, an international online and physical spirits retailer. One of the largest and spice, anise. Featuring an immersive museum and shop, the of fast-growing, super-premium wines and spirits. This exciting programme founded by the International Union for most successful online retailers, The Whisky Exchange’s concept store also boasts a bar and restaurant staffed by partnership will create new business opportunities between Conservation of Nature to build global commitments innovative services bolster our consumer-centric strategy of renowned chefs, pastry chefs and bartenders. the two companies. for sustainable agriculture practices. meeting new consumer needs and expectations. One year of convivial moments 16.11.21 01.03.22 01.04.22 16.06.22 In Emeishan, China, we unveiled 叠川 THE CHUAN Single Malt The Group acquired a majority stake in Château Sainte- Pernod Ricard issued an inaugural sustainability-linked Convivialists from Pernod Ricard affiliates around the world Whisky Distillery, the first such distillery to be established Marguerite, considered a gold standard for cru classé rosés bond, worth €750 million and tied to two environmental celebrated Responsib’All Day by taking part in local activities in the country by an international spirits and wines group. within the Côtes-de-Provence appellation. These elegant commitments: reducing the Group’s absolute greenhouse gas to help protect and restore nature and biodiversity as part of Combining sophistication with conviviality, the site is set to wines join Pernod Ricard’s luxury portfolio. emissions (Scopes 1&2) and decreasing water consumption at the Group’s Sustainability & Responsibility strategy, “Good become a new world-class destination for whisky, arts and our distilleries. Times from a Good Place.” culture. 8 9
Connecting
around
our mission
Connecting
01. Connecting around our mission
around
As “Créateurs de convivialité,” Pernod
Ricard’s mission is to unlock the magic
our mission
of human connection by bringing Good
Times from a Good Place. With our more
than 19,000 employees, we are infusing
sustainability into every aspect of our
business to bring people together in
meaningful and responsible ways. Powered
by The Conviviality Platform and one of
the largest portfolios in the industry, we are
using data to reinforce our core business and
expand into new growth territories, ensuring
that Pernod Ricard covers all moments of
conviviality, for everyone, everywhere.
Content
Our history → Our decentralised organisation
→ Our brand portfolio → Our Mindset for
Growth → Our strategy → Our growth model
→ Our foundations → Our S&R roadmap →
Our value creation model → Our key financial
and non-financial figures → Our governance
Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our 01 02 03 04
05 06 07 08 09 10
11 12 13 history
01 1975 - Creation of Pernod Ricard from 05 2005 - Acquisition of Allied Domecq, 2012 - Signing of the Wine & Spirits 2019 - Launch of a new 2030 12 2021 - Opening of the new Pernod
the merger of Pernod, founded in doubling the Group’s size to become Producers’ five commitments to Sustainability & Responsibility roadmap, Ricard Corporate Foundation’s
1805, and Ricard, created in 1932 the world’s #2 wine and spirits promote responsible drinking. “Good Times from a Good Place.” space at The Island, the Group’s new
by Paul Ricard. company, with brands including G.H. headquarters located in Paris.
2015 - Appointment of Alexandre 10 Acquisition of the super-premium
Mumm and Perrier-Jouët champagnes,
02 1988 - Acquisition of the leading Ricard as Chairman and CEO. gin Malfy and a majority stake in Acquisition of a majority stake in
Ballantine’s whisky, Kahlúa and Malibu
Irish whiskey producer Irish Distillers, super-premium bourbons Rabbit Hole La Hechicera ultra-premium rum.
liqueurs, and Beefeater gin. 08 2016 - Acquisition of
owner of Jameson. Whiskey, Castle Brands (Jefferson’s)
the super-premium gin Monkey 47. Unveiling of 叠川 THE CHUAN Malt
Membership in the International and Firestone & Robertson Distilling
03 1993 - Creation of a joint venture Whisky Distillery in Emeishan, China.
Alliance for Responsible Drinking.(1) Signing of the United Nations Co. (TX).
between Pernod Ricard and Cuban
Sustainable Development Goals Acquisition of a minority stake in
rum company Cuba Ron to market and 2007 - Display of a warning for 2020 - Announcement of our
(SDGs). Sovereign Brands and its portfolio of
sell Havana Club. pregnant women on all bottles commitment to ban all single-use super-premium wines and spirits.
marketed by the Group is extended to The Institut Océanographique Paul plastic at point of sale by 2021.
1998 - Opening of the Pernod Ricard
every country in the European Union. Ricard celebrates its 50th anniversary. Acquisition of leading online spirits
Corporate Foundation to support artistic
Introduction of a “no minors” symbol retailer The Whisky Exchange.
creation and make art accessible to all. 06 2008 - Acquisition of Vin & Sprit, 09 2017 - Acquisition of a majority stake
on all bottles marketed by the Group.
owner of Absolut Vodka. in high-end bourbon producer Smooth 13 2022 - Acquisition of a majority stake
04 2001 - Acquisition of Seagram and
Ambler and in Del Maguey Single in Château Sainte-Marguerite, Cru
their whisky brands (Chivas Regal, 2010 - Adhesion to the United Nations 11 Inauguration of The Island, the Group’s
Village, the #1 mezcal in the United Classé Côtes-de-Provence rosé wines.
The Glenlivet, Royal Salute) and CEO Water Mandate. flagship in Paris, which brings together
States.
cognac (Martell). all its Parisian based affiliates and Launch of the digital label on a
2011 - Upgrade of the Group’s credit
2018 - Nomination of Pernod Ricard 1,000 employees. selection of brands in Europe.
2003 - Signing of the United Nations rating to investment grade.
as a member company of Global
Global Compact, a voluntary initiative Acquisition of a significant stake
07 Launch of Responsib’All Day, Pernod Compact LEAD.(2)
based on CEO commitments to in the ultra-premium Japanese gin Ki
Ricard’s annual social engagement
implement universal sustainability Adhesion to the New Plastics Economy No Bi and in Italicus, an Italian super-
volunteer event involving the Group’s
principles and to take steps to led by the Ellen MacArthur Foundation. premium, bergamot-infused aperitivo.
entire workforce.
support UN goals.
(1) Formerly the International Center for Alcohol Policies.
12 (2) https://www.unglobalcompact.org/take-action/leadership/expert/lead-sdg 13
Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our decentralised Finland
19,480 4
organisation
Employees(3) across the world: 66% Must-win markets:
Scotland
are based in Latin America, Africa & United States, China, India
Sweden Europe (of which 15% are in France), & Global Travel Retail
10% are in North America and 24%
England are in Asia and the Pacific
Ireland
Poland
74
+160
Germany Czech
Republic
Countries with our
own sales force
France
Countries in which our brands
Italy are distributed
Spain Greece
96
Production sites
in 25 countries(3)
Decentralisation is a founding organisational principle
at Pernod Ricard. Since the beginning, the Group has
encouraged consumer-centric decision-making and
addressed customer needs in a timely manner. Conferring
a competitive advantage during uncertain times, as
seen during the Covid-19 pandemic, decentralisation
renders company operations more flexible, efficient and
effective. Based on each affiliate’s operational autonomy
to deliver the overall strategic principles defined at
Group level, it is enabled by regular interaction between
Headquarters, Brand Companies and Market Companies.
Pernod Ricard Headquarters Brand Companies Market Companies
(On 30 June 2022)
Headquarters (located at 5 cours Paul • The Absolut Company
Ricard in Paris) defines, coordinates and • Chivas Brothers • Pernod Ricard North America
oversees the implementation of the overall • Martell Mumm Perrier-Jouët • Pernod Ricard Asia Canada
United States
company strategy and ensures that affiliates • Irish Distillers • Pernod Ricard EMEA & LATAM(1)
comply with corporate policies. Its main • Pernod Ricard Winemakers • Pernod Ricard Global Travel Retail China
responsibilities are governance functions • Havana Club International • Pernod Ricard France(2) Armenia
(strategy, mergers and acquisitions, Cuba
finance, internal audit, legal affairs and Based in the home country of each strategic The Market Companies are each linked to Mexico
India
compliance, corporate communications, brand, the Brand Companies are responsible a region (Pernod Ricard North America,
talent development, sustainability and for developing the overall strategy for their Pernod Ricard Asia and Pernod Ricard EMEA
responsibility [S&R], etc.), dissemination respective brands, as well as activations that & LATAM(1)), with the exception of Pernod
of best practices and cross-functional can be implemented at the local level by Ricard France, which was created from Brazil
initiatives with high added value (digital the Market Companies. Brand Companies the merger of the Group’s two founding
marketing, luxury, innovation, etc.), and are also responsible for the production and Market Companies in France.(2) The Market
Australia
support functions (supply chain, IT, etc.). management of their industrial facilities. Companies’ role is to activate the Group’s
Headquarters oversees the Group’s major international brand strategies at the local South Africa
Argentina
transformation projects and ensures level and manage the local and regional
effective roll-out across the organisation. brands in their portfolio. They are also tasked Production
site New Zealand
with implementing the Group’s strategy
and key policies, such as the transformation Brand Company
projects launched in recent years. head office
Market Company
head office
(1) Europe, Middle East, Africa and Latin America. (2) On 1 July 2020, Pernod SAS and Ricard SAS merged into
14 a single entity, Pernod Ricard France. (3) At 30 June 2022. 15
Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our brand Our House of Brands
portfolio Strategic International Brands
Pernod Ricard has one of the most comprehensive portfolios
of premium brands on the market, encompassing every
major category of wine and spirits and providing the 63% +18%
Group with a clear competitive advantage. Constantly of sales growth compared
to FY21
evolving thanks to a dynamic management policy driven
by brand acquisitions or disposals, this portfolio allows
Pernod Ricard to tap into new consumer trends while
investing in the most promising segments and brands. Specialty Brands* Strategic Wines*
Our House of Brands Strategic Local Brands are strongly rooted The House of Brands affords us the
in a limited number of specific markets. agility to make investment choices that
To ensure an optimal allocation of They benefit from very strong local strike the right balance between short-,
resources for key brands across all consumer loyalty. This part of our portfolio medium- and long-term goals, while
our markets, the Group uses its brand often boosts our route-to-market. continuing to build brands that excel
planning tool, the House of Brands, which throughout our must-win geographies.
encompasses five brand categories: Prioritising our investments
6% 5%
of sales of sales
Strategic International Brands represent Using the House of Brands and in-depth
the largest part of our business and consumer insight, we have developed
our international potential. They are
our worldwide top priorities and the
the following categorisation to define
the appropriate investment strategy
+24% -4%
growth compared decline compared
reference brands in each category. according to the profile of each brand: to FY21 to FY21
House of Brands
Prestige Brands, our portfolio of highly Stars – our leading brands sold internationally
desirable global luxury brands, target our or locally – benefit from significant Transform & Accelerate
most affluent consumers all over the world. investment to enable them to continue Strategic International Brands
It is the industry’s most comprehensive leading in different categories. These Strategic Local Brands
Stars Growth Relays Bastions
portfolio, spanning all major luxury actively contribute to the Group’s growth.
categories and moments of conviviality.
Growth Relays also benefit from increased
Strategic Wines cover a wide range of resources as they serve to capture Prestige Specialty Strategic
origins and tastes. Shared over a meal with various moments of conviviality in highly Brands Brands Wines
friends or on more formal occasions, attractive categories. At the same time,
wine is increasingly appreciated around the they offer a promising growth outlook
world by a growing variety of consumers. in the medium and long term.
Specialty Brands meet a growing demand for Bastions are brands that are mature Strategic Local Brands
smaller-scale “craft” products. Authentic, these or in very competitive sales categories. Stars Growth Relays Bastions
18% +18%
brands offer a unique and comprehensive They receive enough investment to of sales growth compared
to FY21
value proposition that responds to new ensure that we protect their
consumer trends and expectations. market share, sales and profits.
* Non-exhaustive list.
16 17Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our Mindset
01. 03.
The people of Pernod Ricard: pride and commitment Our core values: the heart of our corporate culture
for Growth:
Our more than 19,000 employees are proud ambassadors Our three core values shape our culture and create a bond
of our conviviality culture. Together, we commit to bringing between all Pernod Ricard employees, regardless of their function,
to life the Group’s vision of “Créateurs de convivialité” and to region or affiliate. These values only make sense when expressed
achieving our leadership ambition. At Pernod Ricard, we are: within a convivial environment: there is no entrepreneurial spirit,
Conviviality
mutual trust or sense of ethics without the simple, informal,
• Focused on performance inclusive and transparent relationships that define conviviality.
• Going the extra mile
• Dedicated to all our stakeholders ENTREPRENEURIAL SPIRIT
• Autonomy
Pernod Ricard gives the opportunity to each and every convivialist • Initiative
to experience an inclusive conviviality culture. By customising • Boldness
individual employee experiences to leverage and grow skills, we • Taste for risk
fully reciprocate the energy that employees put into going the
extra mile. Accordingly, levels of employee commitment, pride and Since the Group’s founding, entrepreneurial spirit has been
At Pernod Ricard, we rely on our highly engaged
support for the Group’s values have been above external market one of the key factors differentiating Pernod Ricard from its
employees to unlock the magic of human connection by benchmarks and in line with top performing organisations for over competitors. We cultivate it by encouraging creativity and
bringing Good Times from a Good Place. We embrace 01.
a decade.(1) An inclusive and diverse culture that mirrors the broad innovation within our teams, which permit our employees
our Mindset for Growth by blending performance and spectrum of our consumer base has been further strengthened to thrive. The Pernod Ricard Leadership Model also fosters
convivialité. This purposeful and inclusive culture of in recent years by the “Live without Labels” diversity roadmap and entrepreneurial spirit through a set of specific competencies
conviviality is what makes us different and allows us the gender parity “Better Balance” programme, demonstrating the such as courage, driving vision and purpose, decision quality,
Group’s consistent and progressive commitment to providing an resourcefulness and more. These Leadership Attributes are
to attract the best talents and ensure high employee
outstanding work environment. As “Créateurs de convivialité” leading used globally for assessing, developing and growing our
engagement. Our Growth Mindset is based on our and shaping industry growth, the Group holds a place among the leaders and teams.
three core values: entrepreneurial spirit, mutual world’s most admired companies,(2) the “best employers” in France(3)
trust and a strong sense of ethics. These values are and the companies most preferred by business school students.(4) MUTUAL TRUST
embedded in our shared purpose and our business: • Freedom of initiative
• Open dialogue
not just to sell wine and spirits, but to transform
• Right to make mistakes
every moment, every occasion, into a convivial 02.
experience. Our mindset and culture are major assets We work in the spirit of cooperation and mutual trust. There
and foundational to the Group’s continual success. Our business model: decentralisation can be no conviviality without trust in those taking the
initiative. In the same way, trust is the basis of our relationships
While respecting the autonomy of our affiliates, we combine both internally and externally. We are committed to sharing
the strengths of a large group with the decision speed that our knowledge with partners and working with them to
decentralisation offers to local markets. This means: define shared values throughout our supply chain, ensuring
all our activities are safe, respectful and responsible.
• Decision-making based close to the market
“Our consumers span all 02. • Fast responses to consumer needs SENSE OF ETHICS
• Respect
generations, ethnicities, identities As needs among consumers continue to shift towards more local
consumption and genuine brand experiences, Pernod Ricard’s
• Transparency
• Good relationships with stakeholders
and backgrounds, and we want HQ pilots new forms of conviviality and major cross-functional
projects, pooling certain areas of expertise so that local affiliates can Conviviality thrives when it is defined by moderation. Because the
that to be equally reflected in focus on the essentials: growing their business in their market by way we do business matters, we rely on each of our employees
our convivialists. There is an putting the consumer at the centre of their efforts. Individual market
development plans bring conviviality directly to the consumer as we
to encourage and support responsible drinking. With this in mind,
we launched a worldwide massive open online course (MOOC) on
enormous business benefit to optimise the the right drink for the right occasion at the right time, alcohol and responsible drinking. Mandatory for all our employees,
every time. From this proximity to local markets comes increased its aims are both to inform and to encourage a strong individual
building teams that reflect authenticity, with conviviality serving as a performance accelerator commitment to responsible drinking. Our business, which is the
that maximises exchanges and collaboration among local colleagues. production and distribution of alcoholic products, has an inherent
our consumer base, and we’re need for a strong sense of responsibility, and ethics is a core element
committed to providing an open of our culture and daily activities. Respect is the foundation of
mutual trust as well as a key ingredient for a diverse and inclusive
and inclusive culture in which corporate culture where everyone can be themselves and grow.
our people can thrive.”
Cédric Ramat,
EVP, Human Resources at Pernod Ricard (1) According to external comparative data from our most recent employee opinion survey results.
(2) In the 2021 ranking of the 680 World’s Most Admired Companies, conducted by Fortune magazine.
03.
(3) In the 2021 ranking of the 500 Best Employers in France, carried out by the magazine Capital.
(4) In the 2021 ranking produced by the Swedish company Universum.
18 19Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our strategy: Our strategic
framework
long-term
sustainable Permanent
Créateurs
Vision
growth de convivialité
For the next
Pernod Ricard has adapted its mission and ambition
Mission decade
to an ever-changing world. To ensure their success,
we have launched our growth engine The Conviviality Unlock the magic
Platform. Through the execution of our three-year
strategic plan, Transform & Accelerate, we will leverage of human connection by bringing
consumer trends and deliver profitable growth.
Good Times from a Good Place
Ambition
Lead and shape the industry growth
Growth model
Conviviality: the permanent growth model, The Conviviality Platform, global consumer macrotrends, such as
heartbeat of our business these tenets define our long-term business technology and the rise of the affluent and The Conviviality Platform
strategy. middle classes. By continuously innovating More from the core
The last two years have been characterised how to bring people together and create
Expand beyond
by uncertainty, leading to deep shifts in the Dedicated strategic priorities conviviality in new ways, we will build a
way we live, work and play. In the face of a for the next three years foundation for long-term and sustainable
challenging geopolitical context and business growth.
unprecedented changes in the workforce, While The Conviviality Platform will be the
the ways that people are seeking human growth model of the Group’s business for at
connection are changing. least a decade, the next three years require
a dedicated set of strategic priorities to
Amid these shifting environments, our vision address global and persistent changes to For the next
of being “Créateurs de convivialité” has supply chains and consumption patterns. 3 years
remained the consistent force that keeps us These have been provoked in large part by Strategic priorities
focused in the present while allowing us to the pandemic and geopolitical challenges.
plan for the future. It is also what has led us The evolution of our Transform & Accelerate
to define a new mission that integrates our strategic plan identifies key drivers of
S&R strategy into the heart of our business: growth that will allow us to confront these
to unlock the magic of human connection disruptions.
by Bringing Good Times from a Good Place.
The future of our business depends on Our aim is to strengthen our business from
People
responsible, sustainable conviviality, and the inside out, innovating new forms of
through this pursuit we plan to shape and conviviality that respond to consumer Performance
lead industry growth. Strengthened by our desires. We will pay special attention to
20 21Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our growth model:
“We are building a new competitive advantage that puts data
and technology at the service of our growth. This enables
us to better understand our consumers’ and customers’
The Conviviality preferences and fulfil their needs with precision, and to
deliver the right brand or experience to the right person,
Platform in the right place at the right time, and at the right price.”
Christian Porta,
Managing Director,
Global Business
Development
at Pernod Ricard
ROUTE -TO-CONSUMERS
EXPERIENCES NEW PRODUCTS
& SERVICES & CATEGORIES
With The Conviviality Platform, Pernod Ricard is
defining the Group’s strategic priorities for the
future. A purposeful and powerful growth model, The
MOMENTS OF
Conviviality Platform unites our existing competitive CONVIVIALITY
advantages with new technologies to deliver on our Beyond SUSTAINABLE & RESPONSIBLE
Core
models business
mission to unlock the magic of human connection NURTURING ENABLING
the core beyond
by bringing Good Times from a Good Place. business models
€
PRESTIGE PRICING
ACCELERATION POWER
PORTFOLIO
Unleashing more conviviality market. As technology becomes a new • Growing our positions within AND A&P
EFFECTIVENESS
using the power of data and AI competitive advantage for the Group, we the Prestige market.
will be able to anticipate market trends, With the key data and AI programmes
A balanced and diversified growth model, increase speed and agility in decision developed by Pernod Ricard – Maestria, Matrix,
The Conviviality Platform leverages making, and empower our people. D-Star and Vista Rev-Up – our aim is to
data and technology to boost our core empower our people with more insights about
business and expand beyond our historical We have defined two key dimensions to consumer preferences. The ultimate objective
sources of revenue, capturing ever more stretch our growth: getting “more from is to maximise value share, while ensuring our
opportunities both in the short term the core” to maximise value share in each portfolio meets our long-term ambition to
and for the future. This long-term model market, and “expanding beyond” to pioneer attract and retain consumers. We are already diversifying our growth of them focused on the same fundamentals:
translates into concrete action plans new opportunities for value creation. These avenues with direct-to-consumer creating responsible and sustainable
through the next phase of Transform & two growth dimensions mutually enrich Expanding beyond to developments and successful channels moments of convivialité. We have built internal
Accelerate, our three-year strategic plan. each other, creating additional business pioneer the future such as Drinks&Co. and The Whisky data and AI expert teams to sustain our model
With the broadest brand portfolio in value through data-powered innovation. Exchange, or LeCercle, our VIP invite-only over the long term, and launched massive
the industry, which covers all moments Using the strength of our core digital club. This direct connection with upskilling initiatives to empower the entire
of consumption, creating moments of Accelerating to get more business, we are able to take bolder consumers increases our understanding organisation and ensure our people have the
conviviality is the core value proposition of from the core steps and go beyond to pioneer new avenues of the demand, in turn feeding our right tools to perform in an evolving business
Pernod Ricard’s steady growth. By analysing of growth and shape our own future. We core business with valuable insights. environment. As convivialists, we believe
both consumer demand as well as every The first dimension of our growth model is have defined three specific growth areas: technologies are meant to be at the service
aspect of our business using responsibly structured around three growth axes to get • Scaling-up innovation with new A sustainable, data-driven of people, to bring them closer together
sourced data and ethically developed AI, more value out of our existing portfolio: products and categories; business model for the future and to help them focus on what really
we’re able to generate and fulfil demand, • Activating more brands with the • Broadening our coverage of matters: the magic of human connection.
with precision at scale, offering the right right level of investment; the route-to-consumer; With The Conviviality Platform we have
products at the right price to the right • Maximising the pricing • Stretching our boundaries to include implemented virtuous circular dynamics, with
consumer, for every occasion and in every power of our brands; experiences and services. one growth area nurturing another, and all
22 23Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our foundations:
people and
performance
While The Conviviality Platform is the Group’s engine for
growth, the platform itself is driven by Pernod Ricard’s
people. The Foundations of the Transform & Accelerate
strategy ensure that we strengthen our inclusive
culture of conviviality to empower our employees and “Pernod Ricard
accelerate our performance and transformation.
benefits from
a culture of
excellence in
operations that
Accelerate by engaging People are the key that unlocks the power begin deploying three-year mandates and is bolstering
each convivialist of data, and the success of The Conviviality 18-month rolling forecasts. This continuous
Platform also relies on employees adopting momentum will lead to increased visibility the Group’s
Two action plans define our commitment to
our people: being an outstanding place to
a data mindset and skill set. To engage
each convivialist in both their personal
and long-term strategic opportunities that
will allow us to unlock growth and make
transformation.
work and offering exciting career journeys
to our convivialists. Pernod Ricard promises
success and that of the Group, a massive
upskilling campaign is underway, supported
the whole more than the sum of its parts. A
continuous enrichment process, it will be
By planning for
employees a convivial culture that is both by the development of personalised key to leading and shaping the industry. the future of both
diverse and inclusive. Our global Diversity skill-based career paths. Each employee The past two years have been defined
& Inclusion frameworks bring the two brings unique strengths to the table, and by volatility. From the responses to and our people and
complementary aspects together at the
global level, defining clear objectives and KPIs
they deserve customised opportunities
to leverage and grow their skills.
impacts from the Covid-19 pandemic and
supply chain disruptions to material scarcity
our business in
that permit local adaptations based on affiliate
needs. Across regions, the Youth Action Transform by going beyond budget
and geopolitical turmoil, uncertainty has
become a permanent part of life. Building
a compliant and
Council facilitates the exchange of innovative a profitable future for the Group will thus sustainable way,
ideas for increasing diversity and inclusion Value creation is only valuable if it is lasting require improved resiliency, agility and
within the company by connecting the next and sustainable. While Pernod Ricard has sustainability that is based on anticipatory we are ensuring
generation with top leadership. 43% of Pernod
Ricard management is female, and Pernod
registered record growth in the past two
years, we must continue to future-proof
planning instead of reactivity. Through
better information sharing, tools, planning
long-term value
Ricard North America has earned the title of our business model through two action and capabilities, our sales and operations creation for all our
“Best Places to Work for LGBTQ+ Equality” for plans: going beyond budget to beat the process will become more robust and
six years in a row.(1) By creating an environment competition and improving resiliency, better protected from market volatility. stakeholders.”
where everyone feels safe to be themselves agility and sustainability. Using scaled-up
and empowered to forge their own path, the technology and data, supported by new Anne-Marie Poliquin,
Group sustains high performance among collaborative ways of working and mature Group General Counsel & Compliance
employees, ensuring collective success. sales and operations planning, the Group will Officer at Pernod Ricard
(1) Human Rights Campaign Foundation’s Corporate Equality Index, 2022.
24 25Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our Sustainability
& Responsibility
roadmap: strengthening
Key
achievements
in 2022:
our business NURTURING TERROIR All our products come from nature. We produce and
source over 100 ingredients from 66 countries to create our iconic brands. To ensure
we maintain healthy and resilient ecosystems that allow us to source quality ingredients
→ Completing
terroir
mapping
and risk
now and for generations to come, we are committed to nurturing every terroir and its
assessment
biodiversity and to addressing the challenges of climate change (SDG 13). That’s why we
have been working hand in hand with our farmers, suppliers and communities to transform
agricultural practices into generative actions that will help mitigate climate change, protect
life on land (SDG 15), restore the soil and improve livelihoods throughout the world – for a
long-term, positive impact.
Pernod Ricard’s mission, “unlock the
magic of human connection by bringing
VALUING PEOPLE As “Créateurs de convivialité,” we believe in sharing, → Reaching
Good Times from a Good Place,” places warmth, care and respect for people everywhere. We strive to provide decent work and gender pay
sustainable and responsible thinking sustained economic growth (SDG 8) along the entirety of our value chain, and we champion equity
firmly at the core of the Group’s ways of gender equality (SDG 5) throughout our business. To create shared value for all our
working. An integral part of all business stakeholders, we strive to procure all goods and services responsibly, protect human rights,
activities, from grain to glass, the 2030 foster diversity and inclusion, and create a healthy and safe environment for all. We are also
Sustainability & Responsibility (S&R) committed to providing our employees with future-fit training and educating the bartending
roadmap is key to leading and shaping community on responsible and sustainable practices.
the industry, and an important lever
for accelerating transformation.
CIRCULAR MAKING The world is made of finite resources that are under → Launching
huge pressure. By contributing to responsible consumption and production (SDG 12) first circular
and protecting life below water (SDG 14), our goal is to help reduce carbon emissions, distribution
pilot with
water consumption and waste. To do this, we apply five key principles at each step of
ecoSPIRITS
our product lifecycle: Rethink, Reduce, Reuse, Recycle and Respect. In moving towards
a more circular business model, we are actively striving to preserve and regenerate our
Built around four pillars and 33 targets, the Executive Board in July 2022: an EVP of
natural resources at every step of our value chain – from the raw materials we source,
“Good Times from a Good Place” addresses Corporate Communication, S&R and Public
both consumer needs and material risks Affairs to strengthen our governance. to the way we conceive and produce our products, to how they are distributed and then
facing the Group. Only three years after its ultimately reused or recycled.
launch, we are already on track to meet and Beyond these important advancements, our
even outperform several of these ambitious work is far from complete. Pernod Ricard
targets. In addition to the roadmap, we are remains committed to further accelerating
continually looking to further strengthen the S&R roadmap that is at the centre RESPONSIBLE HOSTING We want to ensure our brands are enjoyed responsibly. → Launching
our commitment to sustainable and of the Group’s mission. Investing in a Creating conviviality requires us to help adult consumers make responsible choices about digital labels
responsible thinking. We took several carbon-neutral future for the entire supply whether, when and how much to drink. We have an important role to play in combating for major
industry-leading steps to do so in FY22. In chain and innovating to drive greater brands
the harmful use of alcohol and supporting health and well-being (SDG 3). To this end, we
November 2021, executive pay and annual circularity and new solutions remain key
develop responsible drinking campaigns and programmes, in partnership with others (SDG
bonuses were directly linked to the Group priorities for us in the coming years.
S&R performance, while in April 2022, Pernod 17), to inform consumers and our employees about the risks of excessive drinking. We are
Ricard launched the industry’s first ever committed to marketing and selling our products responsibly and providing our consumers
sustainability-linked bond. This was followed with a responsible experience. Our brands are also committed to delivering responsibility
by the announcement of a new addition to messages to our consumers through marketing campaigns.
26 27Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our value
Our assets Our business model The value we create
creation Our employees
We have a diverse, talented
19,480
Employees
We provide a diverse and
0
model
and highly committed work- Consumer insights Innovation Producing & sourcing inclusive work environ-
force around the world who ment and create a culture
share the same values. employees(1) Identifying new Developing new, Working with farmers combining conviviality and
trends and consumer high-quality and and suppliers to performance. Gender pay gap(1, 2)
behaviours by more sustainable source natural
getting closer to products, services ingredients and
our brands, markets and experiences. other raw materials
and regions. sustainably.
Consumers & customers
Our portfolio
We have a unique portfolio
240
We offer high-quality products,
services and experiences to
our consumers and customers.
17
of premium brands
encompassing every major E X P E R I E N C E S & S E RV I C E S
of our brands are
category of wine and spirits. brands in Top 100
ROUTE-TO - CONSUMERS
worldwide(3)
RODUCTS & CATEGORIES
NEW P
Shareholders & investors
Our Group mission is to unlock the We create long-term value for Sales up by
Our decentralised model
magic of human connection by our shareholders and investors
77 17%
ROUTE -TO-CONSUMERS
bringing Good Times from a Good by delivering profitable and
We combine the strengths of a EXPERIENCES NEW PRODUCTS
& SERVICES & CATEGORIES sustainable growth.
Place. At Pernod Ricard, we believe large group with the decision
speed that decentralisation
in creating sustained value for all in FY22(1, 4)
offers to local markets.
affiliates(1)
MOMENTS OF
our stakeholders, starting with our Beyond
CONVIVIALITY
SUSTAINABLE & RESPONSIBLE
Core
models business
consumers, who are at the heart NURTURING ENABLING
the core
business
beyond
models Farmers & suppliers
of our strategy. True to our vision
10,000
of “Créateurs de convivialité,” PRESTIGE
€
PRICING
We support our farmers
we work closely with all the
ACCELERATION POWER
and suppliers to develop
Our expertise regenerative agriculture
contributors of our value PORTFOLIO
AND A&P
practices and sustainable
96
chain in a permanent quest We rely on the know-how of
EFFECTIVENESS
farmers
packaging solutions.
our employees and partners empowered,
for cohesion and efficiency.
to optimise our manufacturing trained or
and distribution processes in
operation sites(1) P R I C I N G P OW E R supported (1)
terms of safety, quality and
efficiency. P R E ST I G E AC E L E R AT I O N
C
Communities & society
P O RT F
O L I O A N D A & P E F F ECT I V E N E SS
We support our communities,
partner with our peers and
work with authorities to tackle
93%
Our terroirs challenges together. of markets with
Manufacturing & Marketing
We rely on finite resources logistics & sales Consumption a global or local
and well-functioning ecosys-
tems to produce and source
350 Ensuring health, Leveraging data and Creating moments
responsible
drinking initiative
quality ingredients. safety and new technology to of conviviality for
terroirs environmental market and sell our our consumers to
Planet
standards at products effectively experience our
every stage of and responsibly. products and services
manufacturing,
packaging and
in a responsible way. We minimise our impact on
the environment by preserving
our terroirs, reducing carbon
15.6%
distribution.
emissions and water consumption, reduction of carbon
and increasing circularity.
emissions in absolute
value (Scopes 1&2)
since FY10
(1) At 30 June 2022. (2) 0.9%. According to external providers, a pay gap below 1% is equal to zero and considered best practice.
28 (3) International Spirits, Premium+, Ranked by Volume 2021. (4) Organic growth. 29Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our key Our key
financial figures non-financial figures
Leadership
positions
Financial metrics FY22 Terroir 10,000 100% 73%
€3,130M farmers empowered, of our priority of our direct affiliates
Europe
trained or supported terroirs mapped with a biodiversity
No. 1
since FY19 and risk-assessed programme
World no. 1 for premium
spirits (1)
People 0 43% 6,400
NET SALES gender pay of women in bartenders trained
BY REGION gap(1) management on the Bar World of
No. 2
Tomorrow since FY20
World no. 2 in wine & spirits
industry (1)
Making 15.6% 13.4% 95%
reduction of carbon reduction in water of our primary and
emissions in absolute value consumption intensity secondary packaging is
€4,438M
17
(scopes 1&2) since FY10 since FY18 made from material that
€3,133M Asia/Rest of the world is recyclable at scale
Americas
brands amongst the
world’s top 100 (2)
Hosting 134M 93% 95%
people reached of markets with a global or compliance with
€1,996M €3,024M €10,701M digitally by Drink local responsible drinking International Alliance for
(1) Pernod Ricard Market View More Water campaign initiative Responsible Drinking digital
(IWSR data including 2021 actuals). Net profit Profit from recurring Net sales guiding principles
(2) The Pernod Ricard Market View, (Group share)
based on IWSR volume data
operations
ending 2021.
(1) 0.9%. According to external providers, a pay gap below 1% is equal to zero and considered best practice.
30 31Unlocking the magic of human connection by
01. Connecting around our mission bringing Good Times from a Good Place
Our Board
of Directors
The Board of Directors oversees the governance of Pernod César Giron Anne Lange Philippe Petitcolin Patricia Ricard Giron Namita Shah
Ricard in an ethical and transparent manner while Director, Nominations and Independent Director, Independent Director, Director and Permanent Independent Director,
Governance Committee Strategic Committee Audit Committee Representative of Société CSR Committee Member
ensuring that the business is managed in the best interests Member Member, Nominations and Chairman, Strategic Paul Ricard, Strategic
of its stakeholders. Composed of 14 members bringing Governance Committee Committee Member Committee Member
complementary skills and experience, the Board ensures that Member
the Group pursues its business strategy, with the primary goal
of increasing the value of the Company as well as taking into
account the social and environmental impact of our business.
Alexandre Ricard Patricia Barbizet Wolfgang Colberg Virginie Fauvel Ian Gallienne Kory Sorenson Veronica Vargas Maria Jesús Brice Thommen
Chairman & Chief Lead Independent Director, Director, Audit Committee Independent Director, Independent Director, Independent Director, Director, CSR Committee Carrasco Lopez Employee Director
Executive Officer, Nominations and Member Strategic Committee Member Strategic Committee Compensation Committee Member Employee Director,
Executive Director, Governance Committee Member, Compensation Chairwoman, Audit Compensation Committee
Strategic Committee Chairwoman, CSR Committee Committee Member Committee Member Member
Chairman Chairwoman, Compensation
Committee Member
Organisation who is also Pernod Ricard’s Chief Executive the Executive Session; review shareholder • oversee the preparations for the discussions. The Strategic Committee – Group’s CSR strategy and assesses the
Officer. The Chairman reports on the Board’s requests for corporate governance and Annual Shareholders’ Meeting; created and headed by Alexandre Ricard risks and opportunities in terms of social
In accordance with the AFEP-MEDEF Code progress at the Annual Shareholders’ Meeting. ensure that they are answered; and meet • review and approve the work since 2015 – reviews key subjects for the and environmental performance. Lastly,
of Corporate Governance for companies The Chairman is responsible for ensuring with the Company’s investors. In order to of the committees; Group and issues recommendations on the Compensation Committee defines
listed in France, Pernod Ricard respects that the Group’s bodies run smoothly, further root its work in the Group’s daily • review presentations of the activities of acquisitions, divestitures and partnership the remuneration policy for the Group’s
the independence criteria established in which includes providing the Directors with business operations, the Board holds one the functional departments and affiliates; projects. It studies all strategic matters of Executive Directors, proposes a general long-
the Code. The Board is comprised of 14 the information and resources they need meeting per year in an operating affiliate. • review its own functioning and interest to the Group. The Audit Committee term remuneration policy and implements
members, seven of whom are independent to fulfil their duties. The role of the Lead that of its committees and; reviews the half-year and annual draft an annual plan for the allocation of shares.
and two of whom represent Group Independent Director is notably to convene FY22 activity • update the Group’s Health and Safetly financial statements and monitors the
employees. Following the recommendation and chair the meetings of the Board of policy to ensure it’s implementation Group’s cash flow and debt situation.
of the Nominations and Governance Directors in the absence of the Chairman Over the course of FY22, the Board met in the various affiliates. It also assesses the Group’s risk management
Committee, as of 23 January 2019, the Board and CEO; conduct the annual assessment of eight times, with an attendance rate of and internal control systems. The
appointed a Lead Independent Director. the functioning of the Board of Directors on 100%. The average length of the meetings Committees of the Board Nominations and Governance Committee
the basis of individual interviews with each was approximately three and a half of Directors proposes new Directors and reviews the
58.3% independent directors
The Internal Rules and Regulations stipulate Director; prevent the occurrence of conflicts hours. Their main activities were to: composition and operation of the Board,
that the Board members must meet at of interest; ensure compliance with the • approve the half-year and annual The Board of Directors is assisted in its work as well as the Group’s performance and
58.3% female directors
least six times per year for meetings that AFEP-MEDEF Code and the Board’s Internal financial statements; by five specialised committees that provide talent management policy. The CSR 42.8% non-French directors
are presided by the Chairman of the Board, Rules and Regulations; convene and chair • review the budget; advice and recommendations for the Board’s Committee examines and implements the 100% attendance rate
32 33You can also read
