Integrated Annual Report FY23

Ambitious momentum

Experiences and services

What: Stretch our business beyond the product itself to deliver sustainable and responsible experiences and services.

How: Leveraging and developing our internal assets such as Brand Homes or establishing specific partnerships.

Our model in action:

  • Created new experiential places, including Mx in Marseille and the House of KI NO BI in Kyoto
  • Launched “The Experience Distillery”, a new business unit that creates unique experiences and events related to conviviality

Route-to-consumers

What: Get closer to our consumers by developing new channels and new ways of distributing our products.

How: Expanding omnichannel distribution, creating new touchpoints and enhancing purchasing experiences.

Our model in action:

  • Continuous development of The Whisky Exchange, a leading B2C and niche B2B distributor of fine and rare spirits
  • Further penetration of business meal occasions in China
  • Expansion of Le Cercle VIP club, our platform offering a highly exclusive portfolio to connoisseurs
  • Acceleration of Easy24, digitisation of our interface with wholesalers offering a one-stop shop ordering platform for trade outlets

New products and categories

What: Scale innovation with new products and categories to address new consumer demands and occasions.

How: Addressing emerging trends through our Innovation Hubs, dedicated business units or acquisitions.

Our model in action:

  • Launched new flavoured spirits such as Absolut wild berri
  • Majority stake into Skrewball to accelerate in flavoured whiskies in the US
  • Developing a no-alcohol portfolio to grow no-alcohol opportunities
  • Launched Seagram 0.0% in Spain
  • Majority stake into Cockorico pre-mixed cocktails

Portfolio/Route-to-market and A&P effectiveness

What: Make the most of our portfolio by activating more brands in our markets and allocating our A&P more efficiently.

How: Advertising and promoting the right product at the right place and the right moment. Using robust, data-driven methodologies and tools, including Matrix, Maestria and D-Star.

Our model in action:

  • Focused our investments on our most efficient touchpoints, campaigns and periods of the year
  • Defined the most attractive moments of consumption for a brand to fulfill consumer needs, and adapted investment plan accordingly
  • Focused our sales teams on the right channels and commercial opportunities

Pricing power

What: Maximise the pricing power of our portfolio through tailored pricing and promotion strategies across categories, channels and geographies.

How: Leveraging tools such as Vista Rev Up. Using best-in class Revenue Growth Management tools and capabilities.

Our model in action:

  • Detailed review and adjustment of pricing levels versus relevant benchmarks
  • Monitoring of price index progress across products and geographies

Prestige acceleration

What: Grow our share within the prestige market by developing a stronger position in the most attractive

How: Leveraging our exceptional portfolio of prestige brands, our global coverage and our strong brand-building track record in key geographies.

Our model in action:

  • Acceleration of Royal Salute in multiple markets, including the development of new Polo and Fashion editions
  • Majority stake into Código, to develop our position in the Ultra Premium & Prestige tequila segment
  • Wide portfolio of Rare & Collectible products, in particular in whisky and cognac