PERNOD RICARD REPORT II

PERNOD RICARDBUSINESS REPORT

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E

PERNOD RICARD BUSINESS REPORT

Group E1 DARA COYNE 14204332

PATRICK CONNOLLY 14205706 ROBYN PIM 11511247

SEBASTIEN GIANCOLA 14200517 TRISHNA GUHA 14200592 XINTONG LIU 14203319

SBUS40650 Strategic Service Performance

Simulation Prof.Drs.R. Sybren Tijmstra Lars van der Meulen MBA

TABLE OF CONTENT

1. INTRODUCTION ………………………………………………………………………. 4

2. FINANCIAL OPPORTUNITIES ………………………………………………………… 5

3. COSTS …………………………………………………………………………………… 6

4. INDUSTRY ATTRACTIVENESS …………………………………………………………. 7

5. CUSTOMER SENSITIVITY ……………………………………………………………… 8

6. CRITICAL SUCCESS FACTORS ………………………………………………………… 9

6.1 Pernod Ricard Success Factors ……………………………………………….. 9

6.2 Standard ……………………………………………………………………….. 9

6.3 Premium ……………………………………………………………………… 10

6.4 Super Premium ………………………………………………………………. 10

7. COMPETITORS ……………………………………………………………………….. 10

8. STRATEGIC POSITIONING ….……………………………………………………….. 11

8.1 Standard Brands ……………………………………………………………… 11

8.2 Premium Brands ……………………………………………………………… 12

8.3 Super Premium Brands ………………………………………………………. 12

9. RECOMMENDATIONS ……………………………………………………………….. 12

9.1 Managerial …………………………………………………………………… 12

9.2 Strategic ………………………………………………………………………. 13

REFERENCES ……………………………………………………………………………… 14

APPENDIX I ……………………………………………………………………………….. 15

Pernod Ricard Business Report

1. INTRODUCTION

The global alcohol industry is estimated to be worth around $1.5 trillion, and has enjoyed steady growth of 1.4% for the last decade with much of this growth being driven by premiumization and demographic shifts in emerging markets. At the moment, 36% of revenue is generated by Europe, 28% by Asia and 36% in North America. Recent years have seen a decline in spending by European customers and significant increases in Asia and South America. That being said, it is crucial that key players in the industry adjust their strategies in order to take advantage of these trends. One of the most prominent figures in the industry is the Pernod Ricard group, who is currently a co-leader in the industry alongside Diageo. (Dagong Europe, 2014)

The purpose of this analysis is to assess the alcohol beverage industry and gain a deeper understanding about the French Group Pernod Ricard. The Group is one of the global leaders in the industry, by virtue a wide portfolio in Champagne, Wine and Spirits. This Analysis will be divided into three segments: Standard, Premium and Super Premium. Pernod Ricard is comprised of eighteen products, thirteen premium Products and six Super Premium brands.

There are many varieties amongst the segments with regard to their respective target markets:

- The Standard brands are typically marketed towards younger (18-30 years old) and lower

income demographics who either lack the resources to purchase products from the other two ranges or who have yet to develop a palate for the more upmarket products in the range.

- Premium products are primarily marketed to consumers who are middle aged or older and

middle/higher income groups.

- Super Premium brands are targeted at consumers who belong to the highest income

groups in the marketplace.

The Pernod Ricard brand portfolio is characterized by its diverse offerings, ranging from the parochial to the iconic. As a consequence, the group caters to a wide range of preferences ranging from luxury champagne products to locally produced budget whiskeys. Its global presence and ownership of influential brands provides it with a strong infrastructure for marketing and brand development efforts.

In terms of the firms geographical reach, Pernod Ricard operates in eighty markets globally in 3 main regions - Europe, Americas and Asia/Rest of the World (ROW). The Group possesses 101 production sites, which characteristics a decentralised business model proving to be a major strategic advantage for presenting flexibility and effectiveness in attending its customers demand.

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2. FINANCIAL OPPORTUNITIES

Growth forecasts for the global spirits industry have posited mixed results. In America, consumer trends favoring craft distilleries have taken hold in the United States. This has created structural challenges for established players in the industry like Pernod Ricard. In Brazil, imported spirits have declined due to deteriorating economic circumstances and a strengthening American dollar, leading to inflation. European consumers are turning away from Scotch products, with blended Scotch being hit particularly hard due to its lack of appeal for younger consumers. The other segments of the spirits industry have exhibited growth in European markets however. The outlook for Asia and ROW is also ambiguous. The Chinese market has been weak as many consumers are trading down despite a boost in revenue from the New Year celebrations. Finally, Indian markets have proven to be responsive to premiumization, with revenue growth being primarily driven by efforts to provide customer value in areas apart from price (PRNewswire, 2015).

Geopolitical developments are also sure to create significant revenue opportunities for Pernod Ricard. The restoration of diplomatic ties between the United States and Cuba have made the repeal of the embargo more of a possibility than ever before. Currently, the firm is unable to sell its Havana Club brand in the American market due to the fact that it is produced in Cuba. In the event of a repeal, Pernod Ricard would finally be able to do so. This is an important opportunity, as the American market is the largest market in the world for rum. It is projected that the abolition of trade barriers could increase sales of Havana Club by as much as fifty percent (Guion, 2015). If developments in Cuba-US relations continue in the same vein, it would be safe to say that revenues in the Premium category would increase given Havana Club status (which is already Top 25 Spirit Brand) as one of Pernod Ricard most renown Premium products.

The global spirits industry is dominated by a handful of conglomerates. Key amongst these are Diageo and Pernod Ricard, who serve as the co-leaders of the industry. They are closely followed by Beam Suntory and Bacardi-Maritni, with many prominent brands being owned by these four groups. Analysts reckon that it is highly unlikely for any of these firms to be purchased themselves, and that prospects for further expansion through M&A will be found in smaller boutique manufacturers such as the Campari group. It should also be noted that in the spirits industry scale does not necessarily result in higher profit margins and that many distilleries may be content to remain small provided that their brands can still appeal to consumers (Gelles, 2014). That said, it is apparent that any efforts by Pernod Ricard to attain market share will be primarily through other means for the foreseeable future.

Research into of the price elasticities for products in the spirits and wine category has yielded interesting results with elasticities between developed and developing markets differing substantially. For example, blended Scotch whisky has a price elasticity of -.01 in developing markets compared to -0.5 in developed markets. Other notable categories such as vodka and single malt whiskey possess figures of -0.15 and -0.17 globally. As a consequence, it should be relatively easy for Pernod Ricard to adjust prices for its vital spirit portfolio (Ha, 2014). However, it should be noted that many spirits in developing economies are operating in the

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early stages of the product life cycle, implying that elasticities should increase as the market becomes more populated.

3. COSTS

In the case of Pernod Ricard, many of the cost reduction opportunities can be found in the structure of the organization itself. The firm has already taken action in the form of Project Allegro, an initiative that seeks to improve organizational efficiency through a number of restructuring efforts. The first is to prioritize and focus efforts across the brand and market companies in addition to the holdings company by emphasising the key functions of each. The second is to simplify the organization and its processes by consolidating many of the management entities and executive positions within the organization. The third aspect is that of mutualisation, which seeks to improve the proliferation of important information throughout the organization by centralizing back office functions and the sharing of IT functions between different divisions (Pernod Ricard, 2014).

In implementing these measures, the firm hopes to save approximately €150 million over the next three years. To date, it has saved €30 million in 2013/14 and hopes to save €75 million in 2014/15 with additional savings of €45 million throughout 2015-17, with at least €50 million of these being reinvested in high priority brands. Many of these savings have resulted from job cuts, which are set to total 900 from the firms global operations (Hopkins, 2014).

Pernod Ricard has also attempted to reduce costs by acquiring production facilities in key markets that are expected to drive future growth. In doing so, it hopes to cut costs associated with transporting and marketing international brands in emerging markets. For example, although wines currently account for approximately 10% of the firm’s profits, the firm has commenced winemaking operations in China, an important growth area. The Chinese brand Helan Mountain was acquired by the firm in 2012 and has been used as a staging ground for the firm’s incursion into the burgeoning Chinese market for red wine. (Stone, 2014). The firm could reduce costs by exploiting their vast portfolio of local brands to strengthen the group’s presence in these embryonic markets, enabling its premium and high premium brands to be marketed at lower costs.

Another cost reduction opportunity can be found in Pernod Ricard’s emphasis on premiumization. Central to this process is the notion that the added value associated with luxury goods is more than enough to offset the adverse impact that high prices will have on revenues, due to the relatively low price elasticity of demand that many luxury goods possess (Pernod Ricard, 2015). For this reason, it may be prudent to reduce costs by cutting back on the capacity of some of the brands in Pernod Ricard’s portfolio, as a combination of low supply and high recommended retail prices could serve to aid the firms premiumization strategy while also freeing up some resources that could be reinvested in other, more sensitive areas such as marketing. In the case of Pernod Ricard, it would be most prudent to implement these measures in the Super Premium segment and Premium segments albeit to a lesser extent.

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4. INDUSTRY ATTRACTIVENESS

Before assessing the attractiveness of each segment it is first necessary to examine the profitability of each one on the basis of past financial reports. Starting with Pernod Ricard’s Super Premium category, represented by: Martell Cognac, The Glenlivet, G.H Mumm, Perrier-Jouët and Royal Salute. In terms of organic net sales growth, the Champagne brands Perrier-Jouët and G.H Mumm have posited results of 8% and 9% respectively. The Scotch brand Royal Salute has suffered a decline of 5%, while the malt The Glenlivet has enjoyed an increase of 14% (Pernod Ricard Press Release, 2015). This is hardly surprising, given the decline in Scotch consumption in the European market. Overall, Pernod Ricards Super Premium segment has enjoyed an increase in organic net sales growth of 5.4% for the year 2014/15 to date.

Moving on to the Premium category, there are thirteen brands encompassing eight spirits brands and five Premium wine brands. Net sales growth in the firms wine portfolio has remained constant at exactly 0% and accounts for 10% of the firms overall revenue. The Premium spirits portfolio has elicited more ambiguous results however. The two global icons in the Pernod Ricard portfolio Absolut Vodka and Chiva’s Regal blended whiskey have declined by 1% and remained constant respectively. The Scotch Ballentine has increased by 4%. Malibu and Havana Club rum have recorded shortfalls of 6% and 1% respectively. Beefeater Gin has grown by 4% while the anise liquor Ricard enjoyed sales growth of 2%. The biggest winner by far is Jameson Irish whiskey, which has enjoyed an increase of 9% in net organic sales growth (Pernod Ricard Press Release 2015). Taking these figures into account, it is apparent that the firms Premium segment has grown slightly at 0.8% net organic sales growth on average. Figures for the firm’s Standard portfolio have indicated an increase in sales growth of 5%. Although a breakdown of sales figures on a brand-by-brand basis is unavailable from official sources, it has been noted that Indian whiskeys, such as Imperial Blue have driven much of this growth.

Sales figures by region have been in line with the firms past estimates, with organic net sales figures for Asia and ROW increasing by 14%. American figures have increased by 5%, while European organic sales figures have fallen by 1%. (Pernod Ricard Press Release, 2015). That said, it is apparent that much of firms future growth will be driven by sales in the American and Asia/ROW markets. This could do much to explain the lacklustre growth levels in the firm’s Premium portfolio and steady growth in the Standard and Super Premium segments. One possible explanation is that Standard brands remain popular with less cosmopolitan, lower income consumers living in vital emerging markets such as India and Brazil. The Super Premium brands could also be popular due to the consumer habits of the emerging middle classes, who may be keen to engage in conspicuous consumption due to their newly acquired wealth. As a consequence, the Premium brands are relatively neglected as the liquor markets in many emerging countries are still in the early stage of the product life cycle, leaving little room for middle of the range options that would appeal to establish middle-income consumers.

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Taking into account the revenue and cost reduction opportunities that have also been identified, it is obvious that the Standard and Super Premium brands are the most attractive in the short to medium term, with the premium segment possibly becoming more lucrative in the long run. Price elasticity in developing markets are less pronounced, meaning that premiumization will be more potent. The establishment of production facilities for the Standard segment brands could also do much to bolster growth in this portfolio whilst also paving the way for long run growth in the Premium segment. The possibility of an improvement in US-Cuba relations and the abolition of the embargo could greatly bolster Havana Club sales in the United States and contribute to a notable increase in long run premium growth. To summarize, the Standard and Super Premium segments will be the most attractive prospects for short to medium run growth until the emerging markets become more mature in the long run. After this occurs, we would expect the Premium segment to pick up and for the firms portfolio to become more balanced.

5. CUSTOMER SENSITIVITY

ST: Short Term LS: Low Sensitive HS: Highly sensitive

LT: Long Term S: Sensitive

Standard brands will not be as effected by customer sensitivities as the Premium and Super Premium markets. Price is the main sensitivity in the local market where a higher price may lead to a decrease in units sold. Conversely, the Premium and Super Premium markets are less affected by price as the consumers are purchasing the product based on its high quality.

Overall, economic studies suggest that that alcohol advertising increases consumption while a ban on or counter advertising reduces alcohol consumption (Saffer and Dave, 2006). This is true for the Premium and Super Premium markets rather than in local markets. This can be seen in Pernod Ricard’s marketing campaigns that are ran over a long period. Similarly,

POSITION STANDARD PREMIUM SUPER PREMIUM

1 PRICE - ST & HS MARKETING - LT & HS MARKETING - LT & HS

2ADVERTISING - ST & S SKILLS INVESTMENTS -

LT & HSSKILLS INVESTMENTS - LT & HS

3VALUE ADD - LT & S ADVERTISING - ST & S DELIVERY

COMMITMENT - ST & S

4PROCESS SUPPORT - LT & LS

VALUE ADD - ST & S VALUE ADD - ST & HS

5MARKETING - LT & LS PRICE - ST & LS PROCESS SUPPORT - LT

& S

6SKILLS INVESTMENT - LT & LS

DELIVERY COMMITMENT - ST & S

ADVERTISING - ST & S

7DELIVERY COMMITMENT - LT & LS

PROCESS SUPPORT - LT & LS

PRICE - LT & LS

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advertising affects the amount of alcohol consumed, especially by young people. This can be seen in exposure to advertising and promotional activity, which creates a positive association with the alcoholic beverage and therefore increases consumption (Smith, Foxcroft).

Short-term value add on the other hand, will not heavily influence the consumption of alcohol. A value add can either increase or decrease the price of the product, but the nature of alcoholic beverages does not lend itself to being susceptible to value add offerings apart from those in the Super Premium market. For example, the release of special bottles of a Super Premium brands for St. Patrick’s Day. It is clear that a strong brand message creates business value and leads to a better customer relationship; and these relationships are founded on consistent delivery of a relevant business offer and good customer service.

6. CRITICAL SUCCESS FACTORS

6.1 Pernod Ricard Success Factors

Pernod Ricard is known for their strong portfolio of Premium and Super Premium brands. Their relevant brand strategies are linked to their consumers and trade. The message is a simple, disruptive message that engages the customers at key points of contact. Coupled with properly trained teams, the company prides itself on the dynamic culture that is based on a shared passion for continuous improvement. Pernod Ricard has a strong global foundation for growth due to its network of partners and finance available to invest in brands. (Pernod Ricard, 2014)

6.2 Standard

As was seen in the customer sensitivities for the Standard market, the brands here were mainly sensitive to changes in price. An example is the low cost Scottish whisky, Clan Campbell. Standard brands are integrated with the local culture and traditions. An example of this is the Ricard liquor in France where the tradition is to have a glass at 5pm. This is an example of how the marketing in the local markets is low sensitive. The main success factor in this market is to offer a low cost product to consumers. Pernod Ricard establishes a Standard brand presence through acquisition as was seen in the Mini Ouzo brand in Greece. (Pernod Ricard, 2014)

6.3 Premium

There are several key success factors for Pernod Ricard in the Premium market. In this market, the marketing strategies of the company are extremely important to its success. It is important that the brands here stay relevant to its key influences such as bartenders. The strategy included marketing to further deepen the connection between the customer and the brand. An example is the Absolute Vodka brand and its success in increasing by 8% in the worldwide spirit industry. Brand awareness was created through establishing a connection with music, art and culture and this connection led to a drive in innovation and growth. Such connections emphasise the brands relevance to youth culture and commitment to recognising new talent (intangible business, power brand, 2015).

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6.4 Super Premium

The success of brands in the Super premium market is influenced by sensitivities such as marketing, skills investment and value add. Maison Martell (Cognac) brand is an example of a Super Premium brand, which used success factors to successfully increase sales in the Chinese market. Pernod Ricard’s successful geographical expansion in China was based on several success factors. Firstly, there is a comprehensive range of Super Premium and Prestige. Secondly, these brands were marketing to wide targets and by having direct contact with customers. For example, local prestigious events and events with famous chefs were a typical way of promoting the product. This also ensured that the product was associated with sophistication and grandeur. Customers were also engaged with through education about the brand and PR events (Pernod Ricard, 2014).

7. COMPETITORS

In 2011 the alcohol industry market share was made up of 17% for wine, 34% for spirits and 49% for beer. When focusing on the spirits sector in more detail, it is possible to see that the three biggest varieties of are vodka (28%), whisk(e)y (25%) and rum (13%). (Demeter Group, 2013)

Pernod Ricard has three main competitors in the Standard, Premium and Super Premium markets of the wine/champagne and spirit industry: Diageo, Bacardi-Martini and Beam Suntory.

At the end of 2012, Pernod Ricard held the second position in the overall industry with a share of 19%. The group was responsible for 7% of the whiskey industry and 9% of the vodka industry. The competitive advantage of the Group stems from its diversified range of alcoholic beverages. Furthermore, there are 18 brands within the company’s portfolio which are present in the top 100 brands, thus illustrating how well diversified it is and how well the brands are accepted by the consumers. (Pernod Ricard, 2014)

Diageo is by far the most aggressive competitor within the Premium and standard markets. The Group controls a wide portfolio of brands that are strongly positioned in their respective markets. At the end of 2012, Diageo held 25% of the Vodka market share. This domination is partially due to the brand Smirnoff being one of the leading worldwide spirits brands. This dominant presence in the spirit industry has led to the group acquiring 26% of the overall market share. (Demeter Group, 2013)

Bacardi-Martini represents 8% of the overall market share industry. It is responsible for 6% of the vodka market share with the brand Grey Goose, and does not have any significant participation in the whisky industry.

Beam Suntory is a particularly new entrant as a competitor and it is already considered one of the 4 biggest Groups in the world. This illustrates the potential that this new group has as a leader and as a major future competitor. It possesses 8 brands in the top 100 brands ranking. Its main activity is in the US market where its portfolio comprises of Bourbon, whisky and

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tequila. There is a strong possibility that the group may expand past the American market due to its dominance there.

8. STRATEGIC POSITIONING

Standard Premium Super Premium

8.1 Standard Brands

Pernod Ricard is in a favourable position within this market. Although the group has a diversified market here, it is in a weaker position from than that of its major competitors. Pernod Ricard possesses five brands badly positioned on the top 100 ranking (see APPENDIX I). Diageo is a clear leader on this segment with a high structural attractiveness. It possesses seven brands from the top 100. It is clearly the competitive advantage of Diageo. Bacardi-Martini is weak in this segment with only two brands in the top 100 and can be considered badly positioned. Beam Suntory is strong on this segment with 4 brands from the top 100.

8.2 Premium Brands

This market is the main challenge for Pernod Ricard. Although the Group possess 9 Premium brands in the list of Top 100, the best is only ranked at number seven. On the other hand, Diageo is a clear leader with two brands in the top of the ranking and three other brands well positioned. Bacardi-Martini is a strong competitor in the Premium sector with four strong Brands well positioned. Beam Suntory is a new entrant and offer four brands as Premium, however they can be considered defendable or even weak.

8.3 Super Premium Brands

Pernod Ricard is a clear leader on the Super Premium Category. They are highly attractive in this category by possessing four High Premium brands in the list of the top 100 spirits 2015. Conversely, Diageo only has one and the other two major competitors have none.

CLEAR LEADERDIAGEO/DIAGEO/PERNOD RICARD

STRONG BEAM SUNTORY

FAVOURABLE PERNOD RICARD BACARDI-MARTINI

DEFENDABLEPERNOD RICARD/

DIAGEO

WEAK BEAM SUNTORY BACARDI-MARTINI

HIGH MODERATE LOW

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9. RECOMMENDATIONS

9.1 Managerial

The Standard market is in a defendable competitive position and a moderate segment structural attractiveness. Although the market is in stable, it is still considered the cash cow for Pernod Ricard. The market contains many notable brands that are imbedded in the different strategy markets. In total there are 18 local brands (5 are present in the top 100 spirit brands, thus showing its importance) and these brands have ensured that the group has a strong foothold in local distribution channels that act as spring boards for developing international brands. The Standard market is not the clear cash cow but brings financial security and stability.

It is important that Pernod Ricard continues to focus on cost awareness rather than marketing as the cost is the main customer sensitivity in the market. Standard markets are less affected by marketing as many of the brands are intertwined with local traditions and culture. There should be a long-term investment in more efficient ways of production and transportation.

In assessing the overall state of Pernod Ricard’s business strategy and the performance of its numerous brands, it is apparent that markets will drive much of the firm’s future growth in the emerging economies of Asia and Latin America. In these economies, the firm’s sales are primarily derived from products in the Standard and Super Premium segments, with the Premium segment being relatively neglected. This can be primarily attributed to the fact that the market for spirits in many of these economies is relatively young, and yet to be saturated. Standard brands appeal to younger and lower income demographics that purchase these products for their functional benefits, while products in the Super Premium range are popular amongst the emerging middle and upper classes for reasons pertaining to conspicuous consumption.

Although Standard and Super Premium brands are the key growth drivers in the short to medium term, it is clear that the Premium segment will pick up in these markets as consumer sensibilities and tastes become more developed and refined in the long run. For these reasons, it would be prudent for Pernod Ricard to sustain its investments in the added value and skills categories, while gradually increasing its marketing expenditures so as to establish brand awareness during this important, nascent stage of development. Studies have also shown that the price elasticity for spirits in developing economies tend to be less severe than those in the developed world, so it would be prudent to keep prices constant or even to increase them so as to foster premiumization depending on future sales figures.

For the Super Premium category, Pernod Ricard is a clear leader. The domination in this sector gives to the Group a strategic freedom. They should continue investing in the same way in both long term, such as marketing, process support and skills awareness; and short term, such as advertising. The emergence of promising markets such as Latin America and Asia makes this sector even more attractive and propitious to provide positive results to the Group.

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However it is a capital intensive sector, which demands a significant amount of capital that can certainly be provided by the Group cash flow.

9.2 Strategic

1. Re-adjust emphasis in portfolio:

We suggest the group reallocates resources from the standard market to the premium market due to two main reasons. Firstly, the premium market has a better potential for return on investment. Secondly, the group has a favourable strategic position in the market with major potential for growth.

2. Re-adjust strategy is wine sector:

Decreasing the portfolio of wines and investing in a stronger branded wine that can be transferred worldwide. For example, pruchasing a vineyard from the bordeax region as products from the region are associated with the protected designation of origin (PDO), thus giving the brand an instant recognition worldwide.

3. 5 Year plan:

Currently, Diagio is the clear laeder in the premium and local markets, Bacardi is second in the premium market, Beam is second in local and Pernod Ricard is third in both the premium and local markets. The five year aim for the group should be to be first in both the super premium and premium markets.

4. Overal Focus:

Keep a wide portfolio of brands. The group should maintain their strategy in super premium, improve premium brand market and maintain standard market.

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REFERENCES

DEMETER GROUP, State of the Spirits Industry. 2013

GELLES. D: “After Beam Deal, Few Big Liquor Mergers Left” (NY Times, January 2014) available at: [http://dealbook.nytimes.com/2014/01/13/after-beam-deal-few-big-liquor-deals-left/?_r=0]

GUION. P:”Cuban Rum could soon hit US shores after more than half a century of embargo” (The Independent, May 2015) available at: [http://www.independent.co.uk/news/world/americas/cuban-rum-could-soon-hit-us-shores-after-more-than-a-halfcentury-of-embargo-10262072.html]

HA. L: “Price Elasticities in Alcoholic Drinks” (Euromonitor International, August 2014) available at: [http://blog.euromonitor.com/2014/08/price-elasticities-in-alcoholic-drinks.html]

HOPKINS. A: “Pernod Ricard to Cut 900 Jobs Globally” (the Spirits Business, August 2014) available at: [http://www.thespiritsbusiness.com/2014/08/pernod-ricard-to-cut-900-jobs-globally/]

Intangible Business. The Power 100. The world’s most powerful spirits & wine brands, 2015.

Pernod Ricard Annual Report 2013/14 Corporate Section available at: [http://pernod-ricard.com/files/fichiers/RA2013_2014_GB_PR__WEB.pdf]

Pernod Ricard Press Kit – February 2015 available at: [http://pernod-ricard.com/files/fichiers/Press%20Kit_Pernod_Ricard_February%202015.pdf]

Pernod Record Press Release 9M Sales 2014/15 available at: [http://pernod-ricard.com/files/fichiers/Press%20Release_Sales%20Q3%202014-15.pdf]

PR Newswire: ”Rabobank Report: Global Spirits Industry Q2 2015 - A "Crafty Conundrum" (PRNewswire, March 2015) available at: [http://www.prnewswire.com/news-r e l e a s e s / r a b o b a n k - r e p o r t - g l o b a l - s p i r i t s - i n d u s t r y - q 2 - 2 0 1 5 - - - a - c r a f t y -conundrum-300051045.html]

SAFFER H. and DAVE, D. (2006). Alcohol advertising and alcohol consumption by adolescents. Health Econ., 15(6), pp.617-637.

STONE. G:”Pernod Reacts to Dissapointing First Half” (TheDrinksBusiness.com, February 2014) available at: [http://www.thedrinksbusiness.com/2014/02/pernod-reacts-to-disappointing-first-half/]

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http://dealbook.nytimes.com/2014/01/13/after-beam-deal-few-big-liquor-deals-left/?_r=0

http://blog.euromonitor.com/2014/08/price-elasticities-in-alcoholic-drinks.html

http://www.thedrinksbusiness.com/2014/02/pernod-reacts-to-disappointing-first-half/


APPENDIX I

Source: The Power 100. The World’s Most Powerful Spirits & Wine Brands, 2015

Standard Brand Premium Brand Super Premium Brand Wine

PERNOD RICARD DIAGEO BACARDI-MARTINI BEAM SUNTORY

7. Absolut 1. Johnnie Walkers 3. Bacardi 12. Jim Beam

9. Chivas Regal 2. Smirnoff 8. Martini Vermouth 15. Suntory Whisky

11. Ballantine’s 6. Captain Morgan 17. Dewar’s 49. Sauza

14. Jameson 13. Baileys 21. Grey Goose 50. Maker’s Mark

25. Havana Club 20. Crown Royal 41. Bombay Saphire 58. Pinnacle

27. Ricard 24. Gordon’s 89. Martini Sparkling Wine 66. Teacher’s

31. Martell 36. J&B 67. Canadian Club

38. Malibu 37. Cîroc 74. Courvoisier

47. Beefeater 40. Tanqueray

62. Seagram’s Gin 64. Bell’s

68. Jacobs Creek 72. Seagram’s 7 Crown

75. The Glenlivet 79. Blossom Hill

76. Kahlua 83. Buchanan’s

78. Wiborowa 88. Cacique

84. Clan Campbell

86. Mumm

95. 100 Pipers

99. Pastis 51

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PERNOD RICARD REPORT II

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