Integrated Annual Report FY21

Our value creation model

Our
VALUE CREATION MODEL

At Pernod Ricard, we believe in creating sustained value for all our stakeholders, starting with our consumers, who are at the heart of our strategy. True to our vision of ‘Créateurs de convivialité,’ we work closely with all the contributors of our value chain in a permanent quest for cohesion and efficiency.

Our resources

HUMAN CAPITAL

We employ 18,306(1) skilled and committed employees who provide the Group with agility and adaptability in an increasingly volatile context.

INTELLECTUAL CAPITAL

We never stop innovating products, services and experiences that respond to our consumers’ expectations.

FINANCIAL CAPITAL

Our investors and shareholders provide the Group with necessary financial resources and stability.

INDUSTRIAL CAPITAL

We strive to optimise our manufacturing and distribution processes in terms of safety, quality and efficiency.

SOCIAL CAPITAL

We are deeply rooted in local communities and committed to building long-standing and ethical relationships with all our partners.

ENVIRONMENTAL CAPITAL

We are committed to nurturing our terroir and producing our products within the circular economy to secure our supply chains and preserve natural resources.

OUR VALUE CHAIN

CONSUMER CENTRIC

TRANSFORM & ACCELERATE

4 ESSENTIALS
  • Operational experience
  • Talent development
  • Sustainability & responsibility
  • Route-to-market/Consumer
4 ACCELERATORS
  • Portfolio management
  • Premiumisation & luxury
  • Innovation
  • Digital acceleration

What we do

1 / CONSUMER INSIGHTS

Understanding and anticipating our consumers’ tastes and habits is key to our business. Our Consumer Insights team focuses on identifying and responding to new trends and consumer patterns, capitalising on digital technology to create closer connections with our brands, markets and regions.

2 / INNOVATION

Our Brand Companies and Market Companies make the most of these consumer insights to innovate and develop new, high-quality products and services. 20-25% of the Group’s growth comes from innovation.

3 / PRODUCING & SOURCING

To produce our iconic products, we source over one hundred ingredients from 350 terroirs in 66 countries. We work with our farmers and suppliers to develop sustainable and regenerative agricultural practices. We also work with our suppliers to create sustainable packaging solutions and promotional items. In FY21, we removed all single-use plastic items at point-of-sale.

4 / MANUFACTURING & LOGISTICS

We take great care in the manufacturing, packaging and distribution of our products and ensure we comply with health, safety and environmental standards at every stage. We have 96 production sites across 25 countries.

5 / MARKETING & SALES

We have our own sales force in 73 countries who leverage their knowledge of each market’s needs and regulations in order to sell our products efficiently and responsibly. We are also fast-tracking our digital transformation, developing interactive platforms that link people to new conviviality experiences and using data-driven tools to improve the effectiveness of our brand marketing and activations.

6 / MOMENTS OF CONVIVIALITY

Our on-trade and off-trade partners distribute our products to consumers in 160+ countries. We work closely with them and other industry members, NGOs, local authorities and UN bodies to promote responsible consumption and fight the harmful use of alcohol.

The value we create

EMPLOYEES

We are committed to promoting an inclusive and diverse culture and creating a work environment that combines conviviality, performance and professional development. 94% of our employees say they are proud to work for us(2).


CONSUMERS & CUSTOMERS

We offer high-quality products, services and experiences to our consumers and customers. 16 of our brands are in IWSR’s Top 100 worldwide.


SHAREHOLDERS & INVESTORS

We strive to create long-term value for our shareholders and investors by delivering profitable and sustainable growth. Sales up by 10% in FY21(3).


FARMERS & SUPPLIERS

We work with our farmers and suppliers to source high-quality, sustainable ingredients and to develop sustainable packaging solutions. 8,830 farmers empowered, trained or supported in FY21.


COMMUNITIES & SOCIETY

We engage with our communities, NGOs, industry organisations and public authorities to understand challenges and find solutions together. Our Responsible Party programme reached more than 470,000 young adults, and six million digitally(4).


PLANET

We aim to minimise our impact on the environment by helping to preserve our terroirs, limiting waste and the use of natural resources and reducing our carbon footprint. We are committed to reaching net zero in scopes 1 & 2 by 2030 at the latest and in scope 3 by 2050(5).


  1. FY21 average.
  2. According to the 2019 I Say survey.
  3. Organic growth.
  4. On 30 June 2021.
  5. Scope 1: direct emissions from our own operations, Scope 2: indirect emissions from energy production, Scope 3: indirect emissions from the Company’s activity.