Our value creation model

Chapter 1. Our Group : Accelerating our transformation

Our value creation model

Notre modèle de création de valeur

At Pernod Ricard, we believe that real value can only be created over time if it is beneficial for all of our stakeholders – starting with our consumers who are at the heart of our strategy. Our goal is to continue accelerating our Group’s transformation; we aspire to not only being ‘Créateurs de convivialité’, but creators of economic, social and environmental value.

Our resources

Human Capital

Our employees around the world are at the heart of everything we do. Their mindset and the diversity of their expertise and profiles gives the Group greater agility and adaptability in an increasingly volatile context.

  • 18,776 employees across close to 80 affiliates
  • 88% outside of France
  • Women make up 37% of global workforce (a) and  44% of newly recruited  employees (d) 
  • 1.7% of Group  payroll invested  in training (d)

Intellectual Capital

Innovation is part of our DNA.  Our Brand Companies and Market Companies continuously work to ensure that we respond to our customers’ and consumers’ desires and expectations.

  • 38 marques stratégiques dans notre portefeuille global, la Maison des Marques
  • 16 Brands in the Impact Top 100
  • 4 Marketing Centres of Excellence to sharpen consumer insight (Cultural Foresight, Equity,   Consumer Understanding & Targeting, Shoppers, E-Shoppers & Travellers, Mix Optimisation)
  • Implementation of global digital tools that allow us to adapt our marketing strategies in real-time

Financial Capital

Our investors and shareholders provide the financial resources and stability needed for the Group  to undertake its activities.

  • Share Capital allocation: Société Paul Ricard & Others (16.4%), GBL (7.5%), Board/Management/Employees/Treasury/Shares (2.5%), Institutional Investors (69.5%), Individual Shareholders (4.1%) (i)
  • Net debt/EBITDA: 3.2x (a)
  • Market capitalisation: EUR 41 billion (a)

Industrial Capital

We continuously strive to improve our manufacturing and distribution processes in terms of safety,  quality and efficiency, capitalising on the many innovations brought about by Industry 4.0.

  • 94 production sites in 24 countries
  • Natural resources from +275,000 hectares of land including 5,602 hectares of vineyards operated by the Group
  • EUR 5.1 billion (a) in maturing inventory
  • EUR 364 million of CAPEX
  • Distribution network in +160 countries

Social Capital

Due to the diversity of our brands, Pernod Ricard is deeply rooted in local communities. We are committed to building long-standing and ethical relationships with all our partners – farmers, suppliers, academics & bartenders.

  • Code for Commercial Communications ensures that our commercial communications do not encourage or condone irresponsible consumption or misuse of any kind.
  • Targeted action on the ground to tackle alcohol-related harm. Often working with industry peers and external partners.

Environmental Capital

Natural resources and raw materials are used at every stage of production up until the final packaging. We are committed to nurturing our terroir and producing our products in a circular way, in order to ensure the resilience of our business.

  • Energy consumption per unit produced: 6.19 kWh per litre of distilled pure alcohol (d)
  • 6,5 millions de m3 of water consumption (f)
  • The primary materials used for packaging are glass (875 kt)  and cardboard (59.7 kt). (d)

Our consumer-centric  strategy ( see pp. 26 - 27 )

5 consumer  trends impacting  our strategy

A quest for meaning and new experiences

A new geopolitical context

The emergence of new middle classes

Digitalisation of usages and work

The need for agility and responsiveness

4 ESSENTIELS
  • Operational excellence
  • Talent development
  • Sustainability & Responsibility (S&R)
  • Route-to-market / consumer
4 ACCELERATORS
  • Portfolio management
  • Premiumisation  & luxury
  • Innovation
  • Digital acceleration