Chapter 3. Our strategy : Winning in our four battlegrounds

02. Growing our e-commerce presence

Connectivity, technology innovation and Covid-19 lockdown have driven a continuing shift in consumer purchasing towards the flexibility, convenience and safety of online shopping. Pernod Ricard challenged itself to go further and step up the digital transformation already underway across the Group. The aim has been to grow our e‑commerce presence by expanding our partnerships and platforms, including direct‑to‑consumer solutions.

A framework to leverage online opportunities

The increase in off‑trade sales at the end of this year was accompanied by rapid growth in e‑commerce in some markets during the lockdown period. In the USA and the UK, two of the Group’s top five e‑commerce markets, online sales grew by 105% and 92% respectively, over the past year.

A key focus has been to increase relationships with customers and partners across the e‑commerce landscape, from online marketplaces, pure players, click and collect e‑retailers and on‑demand platforms.

“By understanding the consumer journey, we are better placed to develop the right multichannel approach for profitable and sustainable business growth, including investing in winning platforms,” explains Stuart Heffernan, Global e‑commerce Leader.

Having consolidated information and best practices, the Group has created a series of ‘how to’ guides helping affiliates quickly adapt their strategies to each operating context and measure results. Our ability to offer compelling content, great user experience and seamless service are crucial success factors for online shopping.

« At Group level, we’re supporting our brands and affiliates to build effective e-commerce strategies for their markets.”»

Stuart Heffernan,
Global e-commerce Leader

Strategic partnering for on-demand services

Innovative delivery experiences are allowing consumers to shop anytime, anywhere and enjoy products delivered to their door. Through its Convivialité Ventures (see p. 61), Pernod Ricard has invested in on-demand delivery start-up Glovo which enables the consumer to order groceries and drinks via a mobile app and have them delivered in less than an hour.

Pernod Ricard and Glovo have created a joint business plan to accelerate each partner’s growth and proximity to consumers. The deal, involving over 20 Group affiliates across Europe, Latam and Africa, will make Pernod Ricard a Wine and Spirits category champion on the Glovo platform for better visibility, activation and media promotion within the app. The Group is also embedding responsible drinking into the partnership through training for delivery teams and responsible consumer content on the platform. 

“With Glovo, we can offer a convenient way for millions of adult consumers to get home delivery of their favourite Pernod Ricard brands,” says Juan Pablo Giraldo, Global e-commerce Manager. “Embracing a start-up mentality will boost our ambition to multiply our Glovo business by four and increase our market share over two years, while contributing to accelerate our e-commerce growth globally.”

Direct to consumers: Drinks&Co Marketplace

Pernod Ricard has continued to grow its own e-commerce channels with the acquisition of leading Spanish online wine merchant Bodeboca in July 2019. Together with Uvinum, acquired by the Group in 2018, Pernod Ricard has developed its Drinks&Co marketplace to connect consumers, suppliers and brands with a catalogue of over 100,000 curated wine and spirit products, including products complementary to the Pernod Ricard portfolio.

« The Drinks&Co marketplace is an important testing  ground which will help  the Group explore  the direct-to-consumer route to market, using data to develop our competitive advantage. »

Louis de Fautereau,
Managing Director de Drinks&Co

Capitalising on 50% sales growth over the last year, Drinks&Co is looking to disrupt the market further through new services - using data to create personalised offers, and an international service for products not available in home markets.