Integrated Annual Report FY23

It started with key moments like Dry January and Sober October, but the switch towards alcohol-free and alcohol in moderation is now part of an established and rapidly growing trend towards conscious consumption across all our markets. With consumers looking for more options, and with moments of conviviality extending across a variety of new and different spaces, the interest in non-alcoholic spirit alternatives continues to gain momentum.

According to IWSR 2023, non-alcoholic spirits has been the most dynamic category of all beverage categories over the past five years. By 2030, the category is expected to grow into a multi-billion-dollar retail sales value business opportunity, with the shift towards moderation led by younger generations who are now actively alternating between alcoholic and non-alcoholic options.

We were early pioneers in the non- alcoholic space, since 1982 when we launched Pacific, a non-alcoholic anise drink. In 2021, we acquired Ceder’s, an award- winning non-alcoholic spirit made using 15 different botanicals. Inspired by gin, Ceder’s is an adult premium drink that delivers a cocktail experience, just without the alcohol. In 2022, we reinforced our leading role by taking a minority stake in Boisson, a premium retail, wholesale and distribution business dedicated solely to non-alcohol alternatives

in the US. Most recently in January 2023, we launched Seagram’s 0.0% in Spain, introducing a new innovation to the country’s booming gin market. In 2024, Pernod Ricard will be launching the first ever 0.0% version for one of its Strategic International Brands with Beefeater 0.0%, planned for initial launch in Spain before expanding globally.

Non-alcoholic spirit alternatives have the potential to play a key role in our in net sales. To drive this growth, in 2022 we created a new Business Unit based in Paris, dedicated to growing the non-alcoholic category with expertise in marketing, insights, operations, and business development. We’re well positioned to respond to the non-alcoholic opportunity - expanding our portfolio with exciting propositions and fully leveraging our global distribution footprint to serve these new “moments of conviviality” and new routes to market.

Our innovation pipeline now extends far beyond gin alternatives, which are the main option on the market today. We’ve invested in new technical facilities dedicated to accelerating our expertise in non-alcoholic spirit alternatives across a wide range of categories. And our new state-of-the-art production capacity will answer the complex production requirements for this exciting new category.