Chapter 1. Our Group : Accelerating our transformation

Our impacts

Make our employees grow
  • 94% of employees  are proud to work for Pernod Ricard(b)
  • Record subscription rate for 2019 first-ever Group employee shareholding plan: 41.5%

Create new products and services
  • Prestige, LeCercle Portfolio: 12of our sales(d) 
  • Innovation represents 7%  of our sales(d) 
  • + 1,000 employees from 6 Brand Companies  and 6 Market Companies monitor their brands and our competitors as  well as campaigns and activations via one single monitoring tool

Create long-term value
  • The Group has gained or maintained value share in its top 10 markets
  • Acceleration of its digital transformation in 2019/20
  • Dividend proposed of EUR 2.66(a)

Producing high-quality products and enhancing our production capacity
  • 93.3%of our sites are ISO 14001‑certified(a) 
  • 99% of our vineyards are certified according to environmental standards
  • Provide employment in local economies, especially in agriculture through the production and purchase of raw and processed agricultural products (2.5 million tonnes per year)

Promote responsible drinking and engage with our partners and communities
  • More than 300 commercial communications have been submitted to the Responsible Marketing Panel, of which 93% were compliant
  • More than 150 responsible drinking initiatives worldwide, including our flagship program Responsible Party which has reached more than 400,000 students across 32 countries (h)

Minimise our impact on the environment by limiting waste, consumption and use of natural resources
  • - 33% of CO2 emissions  (scope 1 +2)(c) 
  • - 23% of water consumption(c) 
  • - 80% of non-recycled waste (landfilled or incinerated) per litre of finished product(c)

Our medium- and long-term  ambitions  ( see pp. 28-29 )

PEOPLE

Capitalise on our diverse teams

By 2030, our top management(g) team will be gender-balanced.

Share knowledge and learning

By 2030, 100% of employees will have received future-fit training at least every 3 years.

By 2030, we will train 10,000 bartenders on the bar world of tomorrow.

By 2030, we will partner with  5,000 farmers to share our acquired knowledge on regenerative agriculture.

Fight alcohol misuse

By 2030, all affiliates will have at least one partnership programme implemented at scale and evaluated.

By 2030, Pernod Ricard will expand its 'Responsible Party' programme globally to reach at least 1 million young adults.

Develop strong and inclusive brands

By 2023, we will align all commercial communications with ethical advertising rules.


PROFIT

Embed dynamic growth and deliver operating leverage

Our FY19‑21 plan projects top line growth of +4 to +7% underpinned by leveraging our unique premium portfolio and winning in our four  key markets.

Delivering operating leverage

Our FY19-21 plan projects a strong financial performance, with an expansion of operating margins by approximately 50 to 60 BPS per year.


PLANET

Preserve biodiversity and regenerative agriculture

By 2030, all affiliates will have implemented a strategic biodiversity project addressing the most pressing local biodiversity issues.

By 2025, we will develop regenerative agriculture pilot schemes within our vineyards across 8 wine regions.

Deploy circular models

By 2021, we will ban all POS promotional items made from single-use plastic and, by 2025, 100%  of our packaging will be recyclable, compostable, reusable or bio-based.

By 2030, we will pilot 5 new circular ways of distributing wine & spirits and help increase recycling rates in the top 10 largest markets with low recycling levels.

By 2030, we aim to be water balanced in all high‑risk watersheds, replenishing 100% of water consumption from production sites.

By 2030, we commit to reducing the overall intensity of our carbon footprint by 50% aligned with Science Based Targets (SBT).

(a) As at 30 June, 2020.

(b) According to the 2019 I Say survey.

(c) Per unit of production between fiscal years FY10 and FY20.

(d) In 2019/20.

(e) Impact Databank 2020,  based on 2019 data.

(f) 22.8 million m3 of water was taken from the Group’s industrial sites. Only 6.5 mconstitute water consumption, the rest being exclusively used by cooling installations and restored without any impact on the environment.

(g) Internal definition of top management: Job band C and above.

(h) Since 2010.

(i) As at 31 March 2020.