Group

Pernod Ricard is the worlds leader in the Premium spirits industry. It operates in
more than 85 affiliates and 100 production sites. Pernod Ricard has chosen to focus
on sustainable growth through a large portfolio of international brands and a highend strategy, known as Premiumisation.

ORGANISATION
Decentralisation is the founding principle behind the Groups organisation. Its
equilibrium depends on a continuous dialogue between the Brand Companies and
the Market Companies, coordinated by the Holding Company that defines the major
strategic guidelines.

HOLDING COMPANY
The Holding Company defines the Groups strategy and oversees its
implementation. Its responsibilities are focused on four main areas:
1. Reserved functions (Group strategy, financial policy, corporate
communication, human resources, legal affairs and institutional policies)
2. Control of the management of direct subsidiaries
3. Approval of brand and market strategy
4. Coordination of key policies (Purchasing, Information Systems, Quality
Environment Safety, etc.).
The Holding Company also provides expertise in the fields of sales and marketing.
200 employees work at the Holding company in Paris.
5 STRATEGIC DRIVERS
Pernod Ricards growth model is based on five strategic drivers: a portfolio of
international Premium brands, two strategic focuses (Premiumisation and
innovation), a decentralized organisation, a strong corporate culture, and a
historical commitment to ethics, people and the environment.

1. THE "TOP 14" A COMPREHENSIVE PORTFOLIO OF INTERNATIONAL PREMIUM

BRANDS DRIVING THE GROUP'S GROWTH
Since its beginning, and particularly over the last ten years of rapid acquisitions,
Pernod Ricard has built a unique portfolio of Premium brands on an international
scale.
This portfolio covers all Wine and Spirits categories and is now illustrated by The
House of Brands concept.
The House classifies the Group's priority brands into three segments:

the Top 14, which includes 14 strategic spirits and champagne brands

the Wine segment, with its 5 priority Premium wine brands

18 key local brands

The Top 14 is made up of:

2 global icons: ABSOLUT Vodka and Chivas Regal Scotch whisky

7 strategic Premium brands: Ricard pastis, Ballantines whisky, Jameson Irish

whiskey, Havana Club rum, Beefeater gin, and Malibu and Kahla liqueurs

5 strategic Prestige brands: Martell cognac, The Glenlivet and Royal Salute
whiskies, and Mumm and Perrier-Jout champagnes

2. PREMIUMISATION AND INNOVATION: TWO KEY FOCUSES TO ACCELERATE VALUE

CREATION
Pernod Ricard's strategy is built on creating value through a systematic policy of
upscaling its brands, called Premiumisation. This value strategy is part of a longterm vision based on strong and on-going investment in support of the Groups
brands. In 2012/2013, Premium brands represented 75% of net sales.
Pernod Ricard focuses on innovation as a driver of growth, and has one of the
largest marketing budgets in the industry. In 2012/2013, the ratio of advertising and
promotional expenditures amounted to 19.2% of net sales. Innovation is a priority in
supporting the brands, but it also applies to all areas of the business: Sales, Human
Resources, Production, Legal, Finance and Communications.

3. DECENTRALISATION : A UNIQUE ORGANISATION TO CAPTURE ALL GROWTH

OPPORTUNITIES
Pernod Ricards organisation, unique in its industry, is built around 6 Brand
Companies and 80 Market Companies.
Wholly-owned by the Group, the distribution network ensures a commercial
presence that is closer to the markets and to consumer needs, allowing the global
strategy defined by the Brand Companies to be tailored to local realities.
By its decentralised nature, this flexible and responsive structure has proven its
ability to boost performance and individual motivation. Very well established
internationally Pernod Ricard is the leader in many Asian markets such as China
and India it is optimally positioned to take full advantage of the growth of these
markets, which are the most dynamic of the sector.

4. A CORPORATE CULTURE RECOGNISED AS A COMPETITIVE ADVANTAGE : 18 000

STRONGLY COMMITTED "ENTREPRENEURS"
In a decentralised organisation, it is the corporate culture that binds everyone
together. This corporate culture is experienced as a real competitive asset,
expressed in a convivial, simple and direct attitude. The 18,000 employees of the
group share in it every day, maintain it in their relationships with each other, and in
their relations with the consumers of each brand. This Pernod Ricard spirit is
conveyed by the tagline Crateurs de Convivialit.

The Groups culture is grounded in three values:

an entrepreneurial spirit

mutual trust

a strong sense of ethics

These are continually encouraged by a policy of Human Resources management

that promotes leadership skills, mobility and diversity.

5. A HISTORICAL COMMITMENT TO ETHICS OF WHICH EVERY EMPLOYEE IS AN

AMBASSADOR
There is no leadership without a deep sense of responsibility. This approach is
historically rooted in the Groups history and encoded in its DNA. The best evidence
is its commitment to society, unchanged from its beginning nearly 50 years ago.
Formalised in a platform for Corporate Social Responsibility (CSR), this commitment
takes concrete shape through a prerequisite, the respect of all the advocates and
four priorities:
1. Empower our employees
2. Promote responsible drinking
3. Protect our planet
4. Develop our communities and engage our partners
For Pernod Ricard, its employees are the front-line ambassadors of these
commitments.

Absolut Company:
The Absolut Companyis about much more than a broad and successful portfolio. Our core
business is Innovation and Creativity. It is part of our culture, our philosophy and everything
we do, every day.

Vision:
Creativity is the heart of our brands desire.
Whatever we do, we do it first. We dont follow trends, we create them. We are
continuously adding new dimensions to everything we take on for a simple reason:
were passionate about we do. This passion will take us to where we belong at the
edge, leading the way.