Integrated Annual Report FY24

Nurturing terroir

Nurturing terroir

Nurturing terroir

Our products take their character from the land where they are grown. We nurture every terroir and its biodiversity and respond to the challenges of climate change to ensure quality ingredients now and for generations to come.

Our terroirs are at the heart of environmental and social challenges. We work hand in hand with our farmers, suppliers and communities to transform agricultural practices through actions that will help mitigate climate change, protect life on land, restore the soil and improve livelihoods throughout the world. Our objective of sourcing over 100 ingredients sustainably, through certification and mitigation processes and regenerating nature to create a positive impact, is at the core of our Nurturing Terroir pillar.

Innovating with farmers

At Pernod Ricard North America, we collaborate with our main grain suppliers to embed more sustainable and regenerative agricultural practices tailored to their farms’ unique needs and terroir. One such approach is cover-cropping, which introduces specific plants into farmers’ seasonal agricultural field rotation - not to be harvested, but to benefit the soil and surrounding ecosystems.

This year, through trials, we’ve recorded real improvements in soil health through the analysis of carbon sequestration, nitrogen fixation, agricultural stability and organic matter. In Kentucky and Texas, for example, cover-cropping has increased the overall quality score of the soil from a 2021 baseline of around 60% to close to 75% in 2023, according to our internal measurement tool (65% to 80% is considered a 'high' soil quality score).

By maintaining direct relationships with farmers we can increase traceability, reduce carbon emissions and water usage, and improve soil quality and biodiversity in our supply chains.

Since we have been working with Pernod Ricard to increase the use of regenerative farming practices, we’ve seen real benefits to soil health including retention of soil moisture, reduced erosion, and reduced use of tillage. Over the next couple of years, we want to substantially increase in acres devoted to regenerative farming.”

JOHN SAWYER, PRESIDENT AND CEO OF SAWYER FARMS, THE MAIN CORN SUPPLIER FOR OUR ICONIC TX WHISKEY BRAND

39%of our key raw materials covered by sustainable certifications

11k+
farmers empowered, trained or supported since FY19