The world’s leading premium spirits company

Pernod Ricard is #2 wine and spirits company

Key Business Activities

Key Figures
Pernod Ricard – A tipple for every mood

Scotch Whisky Irish Whiskey World Whiskey

Cognac & Brandy Wines Champagne

Vodka Gin Rum

Pernod Ricard – Home of 6 brand companies and 240 brands

House of Brands
Strong growth in FY 22 albeit on a weaker base

US +8%

China +5%

India +23%

Europe +19%

• Net Sales € 10.7 Bn | Organic Sales growth +17%

• Net Profit € 1.9 Bn | Organic profit growth +19%

Global Alcohol Industry to grow at 5.9% till 2027

• Beer and whisky are top 2 • Global alcohol sales to grow at ~6% CAGR
consumed categories • Asia is projected to lead the growth with China and India
• Strong growth projected till driving bulk of sales
2027
Global Spirits Industry growth projected at 2.2% CAGR with Asian dominance

• Liquers contribute the most to revenue followed by

whiskies

• Asia dominates the spirits

sales
• Low priced local players and
brands

• Share of out-of-home consumption set to rise

Declining consumption and ageing population with decreasing share of wallet
Demographics Long term consumption Consumer spending

• World population is growing but ageing
at the same time
• Different consumption patterns then
the past
• However, consumption is also rooted in
culture
• Shift towards healthier lifestyle and • Consumer spending on decline for
attitude alcohol and tobacco
• Consumption declining or stagnant • Spending concentrated in Asia with
except in India, US and Japan 80% contribution
Government vigilance, pressure on sustainability and healthy drinking to keep
increasing

Increased government vigilance More and more market going media dark

Pressure on sustainability

zero-alcohol and healthy drinking

Newer trends are emerging with advent of craft spirits and newer drinking trends

Rapidly changing geopolitics Increased taxation and duties

Rise of new drinking trends Growing ‘craft’ consumption Growth in Luxury spirits

Data driven personalized marketing Tech enabled distribution & supply chain Ecommerce sale to boost
Pernod Ricard is prepared for many trends, but some are insurmountable
What is happening Who is influencing What is the impact How can we tackle this

• Consumers • Rise of zero-alcohol drinks. • Positive messaging regarding

Consumers are gravitating towards • Activists • Reduction in spirit consumption responsible drinking
healthier choices of food and beverages • Employees • Zero alcohol alternatives
• Regulators

• Consumers • Pressure on bottomline • Increased focus on sustainability

Increased focus on sustainability and net • Regulators • Consumer boycott is a • Packaging solutions
zero • Activists possibility • Engagement with stakeholders
• Risk of penalties

Regulators are becoming increasingly • Regulators • Restricts consumer engagement • Active engagement with
vigilant regarding distribution, policies, • Activists • Dampens topline stakeholders
marketing and duties • Negative image • Creative marketing

• Consumers • Increased competition • Acquire new brands

New drinking trends in form of RTD and • • Provide opportunity to innovate • Product innovation
Competitors
craft spirits • Endorsed brands / sub brands

• Consumers • Provides opportunity in terms • Digital innovation and adoption

Increased digital adoption, rise of • Technology of channel of communication
ecommerce and AI and sales
• Increase insights and efficiency

• Consumers • Provide opportunity to • Strong brand portfolio

Rapid growth in luxury spirit demand • Economy ‘premiumize’
owing to high disposable income
Demand for luxury, newer craft spirits and government vigilance can impact the
most

High
Importance

Low High
Likelihood
 Luxury, craft spirit brands and newer drinking trends provide opportunities and
challenges
1. Rise of bespoke (craft)
and ‘affordable’ luxury
connoisseurs
2. Rise of ‘vice’ vigilantism
3. Rise of ‘Cool’ drinkers:
Ready to Drink
4. Rise of health and
sustainability champions
Certainties
• Growing disposable income
specially in global East
• Luxury demand increase across
categories
• Competition intensity
• Regulators are becoming
increasingly restrictive globally
• Sustainability pressures are only
going to increase
• RTD as a category is growing rapidly
• More consumers into legal drinking
age
• Competition will intensify
• Re-shift to cocktail drinking culture
and neutral spirits (vodka. Gin)
• Health focus is gaining ground
globally
• Regulator and activist actions
• Consumer preference of sustainable
brands
Uncertainties
• Economic shocks
• Consumer loyalty
• Rise of health consciousness
• Regulation changes, pace and
direction are unpredictable
• Ability to influence is limited
• Longevity and sustainability of trend
• Regulator attitude
• Acceptance across consumer groups
• Universal acceptance
• Consumer readiness to pay more
• Zero-Alcohol as long-term
acceptable alternative
Brand strategy
• Focus on premium portfolio
• Leverage endorsed brands model
• Brand stories for expression and
activation for meaningful consumer
engagement
• Positive messaging
• Creative marketing with surrogate
brands and activation platforms
• Product innovation
• Leverage contemporary and ‘cool’
brands like Absolut, Jameson and
Beefeater
• Sub-brand strategy
• Product innovation and use Sub-
brand strategy to introduce ‘mixers’
• Sustainable packaging development
• Engage consumers with
‘Responsible drinking’ campaigns
for +ve msgs
Absolut to target ‘cool drinkers’ and ‘luxury connoisseurs’
Absolut is the 2nd biggest global premium vodka brand from Sweden
The Story

• Established in 1879 in Ahus, Sweden

• Acquired by Pernod Ricard in 2008 for 5.63
Bn
• 2nd biggest vodka and 6th largest spirit
brand in the world
• Authentic and simple: Winter wheat,
pristine water and CO2 neutral distillation
• Sustainable farming, community support,
• Iconic bottle with 40% recycled glass
• Absolut Vodka is 0% (that’s Z-E-R-O) sugar,
carbs, proteins, or fat
Absolut has ground-breaking communication with clear and bold messaging
Brand proposition Product Proposition

Brand Crusade 1 Brand Crusade 2

Absolut Vodka offers a premium, versatile, and creative vodka experience that
embodies purity and craftsmanship.

Artistic Bold Direct

Craftsmanship Simplicity Quality

Conviviality Responsible

Purity, Authenticity and creative

Passion Pride
expression

Empowerment Heritage

Versatility Innovation

Creative Youthful Trendy

Strong premium brand in a growing category but lacks luxury credentials
• Strong heritage • Weak luxury credentials
• Powerful brand reputation with high recall • Brand design and elements though iconic can
• Clear and bold communication appear dated
• Innovative marketing
•
•
Versatility and variety
Strength of group company S W

• Cocktail trend O T •
•
Regulatory challenges
Rapidly changing consumer preferences
• Increased interest in RTDs
• Growth in disposable income and • Brand crusade can alienate many customers
interest in premium spirits • Strong competition esp from craft and luxury
vodka brands

1. Rise of bespoke (craft)

3. Rise of ‘Cool’ drinkers
and ‘affordable’ luxury
preferring Ready to Drink
connoisseurs
1. Rise of ‘craft’
and ‘affordable
luxury’
connoisseurs
Revamp Absolut Elyx to win luxury
customers
Absolut Elyx offers an exclusive and luxurious vodka experience handcrafted crafted with
precision and heritage
Super-premium expression within the Absolut portfolio,
positioned as a luxury vodka brand with a focus on
craftsmanship, heritage, and exclusivity. 2X price of Absolut

Targets a more niche market of discerning vodka

enthusiasts and luxury consumers who value exclusivity,
craftsmanship, and a premium experience through high end
bars and luxury occasions and experiences

Crafted using traditional copper stills, which are labour

intensive but offer greater control and contribute to the
smoothness and character

Absolut Elyx, comes in a distinctive copper-colored bottle,

reflecting its association with copper stills and its premium
positioning.

Absolut Elyx lacks luxury credentials due to its association with

the mother brand
Absolut is not able to lend luxury credentials to Elyx

• Considered a premium yet contemporary mass brand

• Different positioning: Absolut is young, trendy and ‘cool’. Elyx targets matured, sophisticated
and discerning customers
Brand
• Target customer segment has different attitude and motivation: Bold and action-oriented
Issue
messaging might not be suitable
• Current brand mnemonics does not work for Elyx
• Absolut associates with ‘hip’, ‘high energy’ street artists: Graffiti, Hip-hop, DJs

• Spin off Elyx as a separate, independent brand

• Positioning: handcrafted, artisanal brand targeting discerning enthusiasts who value exclusivity
• Brand tone: earthly yet sophisticated, modern and minimalistic, heritage & craftsmanship
Brand
• Subtle purpose driven messaging - brining positive change - which appeals to the TG.
Strategy
• Continue creativity approach with artist association : Classic rather than street.
• Bespoke luxury events and associations for customer engagement and experience
Absolut Elyx is
luxurious,
exclusive,
traditional and
glamourous or
ornate
New Elyx is
artisanal,
modern and
vibrant with
muted luxury
Leveraging the subtle luxuriousness of copper to make the brand more vibrant and modern
Absolut Elyx is handcrafted, exclusive, traditional and ornate
New Elyx is handcrafted, artisanal, modern and vibrant

Current brand map Desired brand map

Exclusive Earthly
Exclusive Glamorous
Simplicity
Simplicity

Conviviality Responsible
Conviviality Responsible
Handcrafted,
Handcrafted,
Artisanal Passion Exclusive, modern Pride Smoothness
Traditional Passion Exclusive, modern Pride Smoothness and vibrant Luxury
and vibrant Luxury

Empowerment Heritage
Empowerment Heritage Company Value
Company Value

Craftsmanship
Craftsmanship Product Value
Product Value
Creative Modern
Creative Traditional
Tonal Value
Tonal Value
New Elyx logo and brand elements to ooze vibrant and modern feel

Recreated logo - modern and dynamic. No association with Absolut

‘Handcrafted with Copper’ to drive home the USP

Subtle copper hues (over loud and glossy) for ‘muted’ luxury feel

Fresh and vibrant look over traditional and dated

Softened and minimalistic design which is more appealing to discerning

customer

Design to ooze modernness via geometrical elements

Colour Palette to ooze sophisticated luxury :

New Elyx Brand strategy to win luxury vodka customers

New Elyx logo and brand elements which are more vibrant and modern
yet have luxury feel

Handcrafted, artisanal, luxury vodka with superior smoothness and

unique character of copper

Targets a more niche market of discerning vodka enthusiasts and

modern, luxury consumers who value craftsmanship, and exclusive
experience. Age: 30-45y

Subtle purpose driven messaging encouraging people to bring positive

change

Creative associations with unique international ‘indie’ artists and

influencers. Genres – Art Deco, Jazz, Art-Pop, Indie Folk/Rock

Bespoke luxury events and associating with Cultural Preservation

 ALCOHOL
For no good memory was ever
created by people ‘taking a
break’ to drive from their
‘Courtyard’ in an ‘electric car’ to
shop for ‘clothes’
Anonymous, 1023 BCE

Cheers!