DUBLIN--(BUSINESS WIRE)--
Research and Markets (http://www.researchandmarkets.com/research/4kzbj2/pernod_ricard) has announced the addition of the "Pernod Ricard Case Study: Premiumization and Decentralization Fuelling Growth in Mixed Macroeconomic Environment" report to their offering.
Over the last 10 years of rapid acquisitions, Pernod Ricard has built a strong portfolio of premium brands on a global scale. Most of its brands enjoy a leading position in international markets. The company has adopted a decentralized operational structure to manage its global operations, based on six brand companies and 75 market companies.
Features and benefits
- MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
- Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.
Highlights
- Pernod Ricard recorded a 7.5% increase in revenues in 2012, reaching $11,429m; this performance was mainly driven by premium brands and emerging markets. The group has one of the largest marketing budgets in the industry; 21.8% of the group's net sales were spent on advertising and promotion in 2012.
- The emerging markets are the key drivers of the company's growth, and represented 39% of its operating profit in 2012.
Pernod's attention is particularly focused on high income consumers, those 11 million individuals around the world that have over $1m in financial assets.
Your key questions answered
- What is the size of the global wines & spirits market? How fast is the wines & spirits market growing? Who are the main competitors?
- What is premiumization?
- What are five pillars of Pernod Ricard's growth?
- How does decentralized structure contribute to revenue increase?
Key Topics Covered:
OVERVIEW
PERNOD RICARD IS ONE OF THE LEADERS IN WINES AND SPIRITS MARKET GLOBALLY
- Pernod Ricard focuses on a single business line of wines and spirits
- The group has a wide portfolio of premium brands with a strong heritage
- Pernod Ricard aims to become number one in the industry
- It's top 14 brands create Pernod Ricard's leadership position
- The Absolut brand generated 24.2% share of strategic spirits sales volume in 2012, and Jacob's Creek led wine sales
- Developing markets generated 39% of the group's operating profit in 2012
- The group continues to post gains in mature markets
- The group's revenue reached $11.4bn in 2012, growing 7.5%
- Consistent growth in all segments except France
POSITIVE OUTLOOK FOR GLOBAL WINES AND SPIRITS MARKET
- Global spirits market is expected to continue increasing at a steady rate
- Global wines market is witnessing a steady increase
- Europe is the largest wines and spirits market globally, but Asia Pacific grows at the fastest rate
- Premium brands sales are strong even in mature markets
- Premiumization trend sustained by "weekend millionaires" and growth in emerging markets
- Diageo, United Spirits and Pernod Ricard lead the competitive global wines and spirits market in 2011
- Advertisement restrictions may lessen high brand products' impact, while tax increases eat revenues
- Counterfeit alcohol sales impacting players' revenues
- Higher labor costs impact on revenues
FIVE PILLARS OF GROWTH
- Five pillars of Pernod Ricard's growth
- The house of brands: all Pernod Ricard's flagship brands under one roof
- Premium brands generated 73% of net sales, growing by 19% in 2012
- Pernod Ricard spent 21.8% of its net sales on advertising and promotion in 2012
- Pernod Ricard subsidiaries are preparing to launch over 300 innovations
- Lavish spending to target high net worth individuals
- Decentralized management structure build around six brand companies and 75 market companies
- Wholly owned and decentralized distribution network improves competitiveness
- Nearly 19,000 employees are responsible for their own performance at the local level
CONCLUSIONS
- Rise of middle class in developing markets creates growth opportunities for premium brands
- Decentralization allows Pernod Ricard to benefit in a mixed macroeconomic environment
For more information visit http://www.researchandmarkets.com/research/4kzbj2/pernod_ricard
Laura Wood, Senior Manager.
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Beverage
