Integrated Annual Report FY21

Chapter 2 : Our environment : Staying connected to trends and opportunities

01 
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Loss of major industrial site/strategic inventory

Resulting in significant business disruption and unavailability of certain key brands in the trade.

Toxic contamination

Resulting in major injuries for consumers and commercial and reputational risk for the brands.

02
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Cyber attack

Cyber intrusion compromising systems, websites and data integrity.

03
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Geopolitical and macro-economic instability

Risk of a broad geopolitical turmoil and the resurgence of a macroeconomic crisis.

Anti-alcohol environment

Strengthening of legislation resulting in new restrictions or constraints regarding advertising and distribution of alcoholic beverages.

Regulatory risks

Triggering price increases and/or higher costs for the company and in the case of business ethics regulations, administrative and criminal penalties.

Pressure on prices and margins

Risk of margin erosion due to intensified pressure from retailers, fierce competition and potential increase in cost of goods sold and logistics expenses.

Climate change and environmental damage

Global warming impact on our activities and environmental damage caused by our activities.

04
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S&R challenges

Good Times From a Good Place, 2030 S&R roadmap made up of four pillars for which qualitative and quantitative objectives have been identified.

05
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Supply chain disruptions

Major unpredictable event complexifying the access to markets; key supplier failure; unavailability of raw material.

Product quality issues

Quality deviation leading to customer disappointment and brand image deterioration. 

Health & safety

Severe accident involving an employee or contractor as a result of a criminal or industrial incident; Covid-19 pandemic impacting the mental health of Pernod Ricard employees.

06
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Fast-changing consumer behaviours

Consumer behaviours changing at a fast pace in terms of expectations and trends (product categories, distribution channels, consumer experiences).

Financial risks (FX, interest rates, credit)

Unfavourable evolution of exchange and interest rates or the failure of customers leading to non-collection of receivables.

Talent management

Inability to attract, develop and retain talent.

Negative media coverage

Impacting the image of the Group and/or its key brands.

07
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Pensions

Unanticipated increase of pension fund’s deficits and/or cash contributions.

08 
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Major litigation

Against Pernod Ricard, its affiliates, its brands or its management.

Fraud

Resulting in financial losses or the leakage of sensitive information.

09
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Counterfeiting/IP rights

Counterfeit and look-alike products damaging brand equity and impacting sales.