Entreprendre No. 44, Spring-Summer 2004

The
magazine
for
P e r n o d
R i c a r d
10
s h a r e h o l d e r s
Havana Club
year anniversary
Region
Territory
Visitor Centres
Asia - A clear ambition:
to become No.1
The Europe of 25:
implications for the Group
Jacob’s Creek Visitor Centre:
a new environmental standard
No. 44 - spring-summer 2004
S
U
M
M
A
R
Y
4
STRATEGY
▲
7
Patrick Ricard
Wine and spirits sales up by 8.1%
Group net profit up by 12.3%. “We
are quietly confident about 2004.”
10
TERRITORY
ENTREPRENDRE
& SHARES
12
REGION
▲
The Europe of 25:
the implications for the Group
Asia - a clear ambition:
to become No. 1
On May 1st the European Union has
been joined by 10 new members.
Enlargement to 25 will have a number of consequences for the Group.
In a difficult environment, dominated by SARS in China and the economic crisis in Korea, the Group
achieved excellent results for 2003 in
North and South-East Asia.
▲
26
SUCCESS STORY
20
BRANDS AND MARKETS
Havana Club is 10 years old
White spirits
With a fourfold volume increase in ten
years, Havana Club is on course to sell
2 million cases in 2004. Time for a big
party in Havana.
White spirits account for half the
world market for international spirit
brands, representing high growth
potential for the Group.
30
34
VISITOR CENTRES
▲
Jacob’s Creek Visitor Centre:
a new ecological standard
Orlando Wyndham has welcomed
more than 200,000 visitors during
the first year of its new Visitor Centre.
NEWS
SPONSORSHIP
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SPRING-SUMMER
2004 - NO. 44
3
[
S T R A T E G Y
]
Interview with Patrick Ricard
Chairman and Chief Executive Officer of Pernod Ricard
We are
quietly
confident
for 2004
2003, in a year that was marked by a difficult environment:
SARS in Asia, the Iraq War and a depressed climate in France.
What gave us our strength was that the Group’s organic
growth in wine and spirits was simultaneously drawn from our
international brands and from the local Group brands. These
two ‘engines of growth’ represent one of the keys to the success of the Group. Thus our international brands, Chivas
Regal and Martell, are back on a growth trend, while local
brands like Ararat brandy in Russia have also performed
exceptionally well.
This is a clear vindication of our philosophy of ‘local roots,
global reach’.
Chivas Regal and Martell are both benefiting from new advertising campaigns. How did these two brands progress in 2003?
Patrick Ricard: Taking the year as a whole, Chivas Regal grew
by 7% and Martell by 8%. This growth is driven by Europe
and by Asia, which has become the leading region for sales of
Chivas Regal, while China is now the number one market for
Martell Cordon Bleu.
What is more, our ‘historic’ brands like Jameson, Havana
4
SPRING-SUMMER
2004 - NO. 44
entreprendre
Club, Ramazzotti and Jacob’s Creek have also continued their
upward trend.
To keep all these brands growing at the same time is, to my
mind, a real achievement. For this I would like to congratulate all the Pernod Ricard teams around the world.
Pernod Ricard has seen spectacular growth in Asia, and especially
in China. How have you fared in the other regions of the world?
Patrick Ricard: Asia has certainly experienced tremendous
growth, thanks in particular to Martell, to our Scotch whiskies
Chivas Regal, Royal Salute and 100 Pipers, as well as to our
local brands.
The USA has also been a very dynamic market. South America, after being hit by the economic crisis of 2002, has been
showing encouraging signs for our business in recent months.
Only in France has the market been depressed, though here
our brand leaders Ricard, Pastis 51 and Clan Campbell have
managed to maintain their market shares.
Last year’s consolidated Group sales only reached e 3,534 million,
compared with e 4,836 million in 2002. What is the reason for this?
Patrick Ricard: This drop is the result of what we call ‘the
consolidation effect’. In 2003 we continued our policy of refocussing on our core business and disposed of a number of
activities. This then caused a reduction in our total sales figure
and clearly reflects our virtually complete disengagement
▼
Patrick Ricard, your Group has announced sales figures for wine and
spirits that rose by 8.1% in 2003. The Group’s net profit per share increased by 12.3%, and you have continued to reduce your financial debt. What
are the reasons for this success?
Patrick Ricard: Yes, the Group did achieve excellent figures for
« Overall, if the favourable
economic climate experienced
in the fourth quarter of 2003
continues, we are confident
of seeing growth rates in 2004
that are comparable with those
of 2003.
»
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Sales of Chivas Regal have increased by 7% and Martell
by 8%. This growth is driven by Europe and Asia, which has
become the leading market for Chivas Regal.
[
S T R A T E G Y
]
from activities outside the wine and spirits sector, such as processing fruit products, etc.
In 2003, wine and spirits represented 97% of our turnover,
compared with 70% in 2002. This clearly makes Pernod
Ricard a global player with a single business: wine and spirits.
You have been named ‘Person of the Year 2003’ by the French-American Chamber of Commerce in New York. What are your ambitions in
the United States?
Patrick Ricard: In the USA we are only in seventh place, even
though today we are one of the top three operators in wine
and spirits worldwide. So there’s quite a lot to do! Our current
size in the States gives us a good structure and a good salesforce. In 2003 we saw sustained growth right through the year.
Jameson and Jacob’s
Creek grew by 18% and
26% respectively. The
relaunch of Martell, following the new ‘Rise
Above’ campaign, has
already shown some
very promising early
signs. So we are feeling
good about ourselves in
the USA. If the right
opportunity comes up,
we are ready to make an
acquisition. However, it will not be possible to do this unless
it is clearly in the interests of our shareholders.
The US Patent Trademark Organisation, the USPTO, has confirmed
the registration of the Havana Club brand name for rum in the United
States. This is good news for the Group, isn’t it?
Patrick Ricard: Of course it is; I’m extremely pleased about it.
It’s a decision we were waiting for and hoping for. It confirms
that Havana Club Holding, in which we are a partner with
CubaRon, has the right to use the Havana Club brand name.
We have asserted our right of ownership in the brand at least
up until 2006 but we have not obtained permission to distribute our Cuban rum, Havana Club, in the USA.
How has 2004 started off?
Patrick Ricard: Overall, if the favourable economic climate of
the fourth quarter of 2003 continues, we are confident of
seeing growth rates in 2004 that are comparable with 2003.
We are supported in this view by a number of factors, such as
the continuing growth in China, and the recovery in South
America. Furthermore, the Group’s activity is going to be
more focused on our key brands, and some new products are
going to be launched in the near future. ■
Thierry Jacquillat leaves
the Board of Directors
Thierry Jacquillat’s term of office as Vice-Chairman
of the Board of Directors of Pernod Ricard will come
to an end after the Combined Annual General Meeting
on 17 May.
For more than forty years, Thierry Jacquillat
has worked with great effectiveness in the creation
of the Group and contributed to its success.
Up to 2000 he held the position of Director General.
“Thanks to his exceptional managerial skills, we were
able to successfully make significant acquisitions
in the United States, the United Kingdom and Ireland”,
Patrick Ricard emphasises. “More recently, he played
a fundamental role in the acquisition of Seagram
and the disposal of Orangina.”
Having joined the Board of Directors of Pernod Ricard
in 1988, he has held the position of Vice-Chairman
since 2000. In 2002 he became Chairman of the Audit
Committee.
“A key contributor in defining our global expansion,
he was one of the main players to the
internationalisation of the Group some twenty years
ago” says Patrick Ricard in conclusion.
At the Combined Annual General Meeting there will
be a proposal to appoint the two Directors General
of Pernod Ricard, Richard Burrows and Pierre Pringuet,
as members of the Board.
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[
E N T R E P R E N D R E
A N D
S H A R E S
]
Over the first three months of the year the Pernod Ricard share price
Pernod Ricard and the CAC 40 since the beginning of the year
+16.6%
■ Pernod Ricard
■ CAC 40
+4.9%
Comments from the financial community
120
8
First quarter 2004 sales figures:
ING Financial Markets:
“We are now convinced that the start of the 2004 will be
good.”
Thursday 29 July 2004
SPRING-SUMMER
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8A
pri
l2
00
4
31
Ma
rch
Financial calendar
Fideuram Wargny:
“We are raising our target for the Pernod Ricard share
price from 90 to 110 euros, and are staying with
our recommendation to buy, because of the improvement
in the business environment, and because of organic growth
that is superior to that of its competitors.”
Investir:
“Our advice is to hold the share and take a long view,
with a target of 110 euros.”
100
20
04
4
00
h2
ar c
1M
2J
2F
eb
an
rua
ua
ry
ry
20
20
04
04
CAC 40 and Pernod Ricard, index of 100 as at 2 January 2004
Tuesday 4 May 2004
Annual Shareholders Meeting:
Monday 17 May 2004
Half-year 2004 sales figures:
2004 half-year financial results:
Thursday 23 September 2004
Q3 2004 sales figures:
Wednesday 3 November 2004
has risen by 16.6%, while the CAC 40 Index has gone up by just 4.9%
“Shareholders 2003” operation:
a real success
With more than 350 orders and 14,000 bottles sold, the Shareholders 2003 operation
was a genuine success. Restricted exclusively to Pernod Ricard shareholders, this was
an offer of whiskies, cognacs and other spirits, as well as French and Australian wines,
at preferential prices.
This year, once again, it was the wines that picked up most of your votes, with sales
headed notably by Le Chevalier d’Haurange (Lalande-de-Pomerol) and, from Australia,
the Jacob’s Creek Shiraz Cabernet. On the apéritif and spirits side, the top sellers were
Suze Lacroix and Byrrh Assemblage.
Interim dividend
Pernod Ricard's Board of Directors agreed on 18 December 2003 to pay an interim
dividend of e 0.90 per share with a e 0.45 tax credit for retail investors.
Payment of this interim dividend was made on 13 January 2004.
In keeping with Pernod Ricard normal practice, this amount is equivalent to half
the dividend paid last year.
Pernod Ricard shares
Place listed:
Euronext Paris SA
Codes:
ISIN >
Bloomberg >
Reuters >
Datastream >
FR0000120693
RI FP
PERP.PA
F:RCD
Inclusion in indices:
CAC 40, SBF 120,
FTSEurofirst 100
Number of shares issued:
70 484 081
Find the share price in real time, as well
as the latest financial information at:
www.pernod-ricard.com
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9
[
T E R R I T O R Y
]
The Europe of 25
The implications for the Group
On May 1st this year, the European Union admitted ten new
members, a fact which will impact on the Group in several
ways. An official ceremony organised by the Irish presidency took place in Dublin to highlight the event
The opening of Europe’s borders will further facilitate the
export of the Group’s brands to these ‘new’ member countries. What is more, in the Czech Republic and Poland,
where the Group not only distributes but also produces
several spirits locally, Community rules will have to apply.
T
oday, 70% of the new legislation applicable in the member states of the
European Union is prepared in Brussels. In order to represent the
interests of the Group at the heart of the European capital, Pernod
Ricard has maintained a European Affairs Department there for more than ten
years. The subjects dealt with are varied and range from trade-mark protection
and country-of-origin labelling to the dismantling of tariff barriers against wine
and spirits and, finally, the enlargement of the European Union itself.
“The main interest of enlargement for Pernod Ricard, apart from the opening of borders,
lies in the standardisation of part of the regulatory framework, from Dublin to Vilnius”,
explains Jean Rodesch, Director of European Affairs at Pernod Ricard. “From now
on, it will be our job to ensure that we make the most of this advantage by drawing the
Commission’s attention to cases where the incorrect application of Community law is
damaging the subsidiaries of Pernod Ricard in the region.
Another of our roles is to support the entry of these new countries into the EU by ensuring
that Community rules are properly transposed and applied in these countries. For example,
to prepare for the implementation of new labelling rules, we systematically put our labels
to the test of Community regulations. Doing this, we made sure that they did not present
any problems. We then had our analysis confirmed by the Commission’s legal experts, who
had drafted the new rules, by submitting our labels to them.
Finally, we will need to establish contacts with the Members of the European Parliament,
the offices of the new Commissioners and the European officials from the ten new countries”, concludes Jean Rodesch.
●
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Estonia
● Latvia
● Lithuania
● Poland
● Czech Republic
● Slovakia
● Hungary
● Slovenia
● Malta
● Cyprus
●
●
●
●
●
●
Poland:
Production
of Wódka
(Wyborowa)
Czech Republic:
Distilling of
Becherovka
●
●
●
With their additional population of 74 million, these ten new
countries will increase the total population of the European
Union to 455 million, making it the third largest group in the
world, after China (1.3 billion) and India (1.1 billion).
●
11
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[
R E G I O N
]
A clear ambition >
to become
No.1
▼
IN A DIFFICULT ENVIRONMENT, DOMINATED BY SARS* IN
CHINA AND THE ECONOMIC CRISIS IN KOREA, THE
GROUP ACHIEVED EXCELLENT RESULTS FOR 2003 IN
NORTH AND SOUTH-EAST ASIA.
THE GLOBAL BRANDS, SUCH AS CHIVAS REGAL, MARTELL AND JACOB’S CREEK, HAVE SEEN RECORD GROWTH,
AND LOCAL BRANDS SUCH AS MASTER BLEND AND
100 PIPERS IN THAILAND HAVE ESTABLISHED THEMSELVES AS LEADERS IN THEIR MARKETS.
HAVING BECOME NUMBER TWO IN ASIA FOLLOWING
THE INTEGRATION OF SEAGRAM’S ACTIVITIES, PERNOD
RICARD CAN NOW SEE THE POSSIBILITY OF BECOMING
THE REGION’S NUMBER ONE SUPPLIER OF WINE AND
SPIRITS IN THE NEAR FUTURE.
* SARS : SEVERE ACUTE RESPIRATORY SYNDROME
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[
R E G I O N
]
Chivas Regal beats
every record in China
INTERVIEW
WITH PHILIPPE
DRÉANO,
CHAIRMAN
AND CHIEF
EXECUTIVE
OF PERNOD
RICARD ASIA.
“The Chinese think
of Chivas Regal as
the international
Scotch whisky ‘par
excellence’, and we
are the clear leader
on the Chinese
market”, explains
Martin Riley,
Marketing Director
of Chivas Brothers.
Martin Riley,
With an extremely
Marketing
strong growth in
Director of
Chivas Brothers.
2003, Chivas Regal
has beaten every
record on the
Chinese whisky market, which is by far
the most dynamic in the world.
“Chinese people are travelling more and
more, and tend to reproduce the consumer
habits they have seen abroad when they
get back”, says Martin Riley. “Scotch whisky
is a highly international product, and
Chivas Regal is sold in over 100 countries,
so the Chinese have brought its exceptional
taste home. This could partly explain its
unprecedented success.”
The brand is particularly popular in China
in the 25 – 35 age bracket, and for
corporate entertaining.
“ 2003
was marked by
SARS in China”, explains Philippe
Dréano, Chairman and Chief Executive
of Pernod Ricard Asia. “Chiefly between
March and July, people went out less, spent
less time in bars and karaoke clubs, which
are very popular in that part of the world,
and travelled less. Our duty-free business in
particular was badly hit by this phenomenon, with a drop in sales of 50% - 60%
over the period.”
Nevertheless, the strong growth of the
brands in the first and last quarters
more than compensated for the effects
of SARS. For 2003, Chivas Regal
recorded growth of +215% in the
region, and Martell +50%. Furthermore,
the Group’s business model, based on
decentralisation and independence, has
been extremely successful in the region,
particularly in Taiwan.
The Pernod Ricard business model
applied to Taiwan
14
SPRING-SUMMER
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▼
As Patrick Ricard reminded us, our
Group’s independence has led us to
owning our own sales network throughout the world, so as to have direct management control over relationships with
clients and consumers. Following the
acquisition of Seagram’s activities,
Pernod Ricard has successfully applied
this formula to Taiwan.
Philippe Dréano explains: “In November 2002 we took over distribution of the
Pernod Ricard Asia
is the regional holding
company, which
markets and distributes
the Group’s products
through ten distribution
subsidiaries in North
and South-East Asia.
Boosted by the “This is the Chivas life”
campaign that appeared on television
stations in Shanghai, Beijing, a number
of major coastal cities, and in various panAsian magazines, Chivas Regal is a clear
alternative to imported beer.
As everywhere in the world, Chivas Regal
is drunk in China as a long drink, on the
rocks, or with a drop of water. In addition
to that though, the Chinese also like
it mixed with green tea and drink it as
a cocktail.
“This success is also due to a very good
cooperation between Chivas Brothers,
Pernod Ricard China, and Pernod Ricard
Asia” concludes Martin Riley.
Real opportunities for Chivas
Regal 18
The super premium 17-18 year old
whisky sector is also a clear opportunity
for the Group. Chivas Brothers plans
to relaunch Chivas Regal 18 worldwide
in 2004 – with a particular focus on Asia,
which is a key region for this segment.
Royal Salute,a combination
of luxury and conviviality
Seen as a luxury product in Asia (source: Market research carried out by Chivas
Brothers in China, Taiwan, Korea and Japan), sales of Royal Salute saw unprecedented
success in 2003, as well as the successful launch of Royal Salute 50 Year Old.
Royal Salute is unique in that it is the only super premium whisky that starts with
a 21 Year Old, and the Royal Salute team has worked hard to make the product even
more luxurious, in particular by improving the packaging and the velvet bag in which
the bottle is wrapped.
“The Asian market has a tendency to go for super
premium brands, and is drawn to more prestigious,
higher quality, and therefore more expensive
products”, explains Sophie Gallois, Super Premium
Brand Director at Chivas Brothers.
Royal Salute is associated with corporate
entertaining – it is drunk in hotel lounges
and karaoke bars, where a whole bottle is ordered
Sophie Gallois,
and shared between business partners.
Super premium Brand
Director,
An advertising campaign has been carried out
Chivas Brothers.
on pan-regional media, including CNN, NBC
and the Discovery Channel. The aim is to reach an audience of travelling businessmen
and business expatriates.
“Around 60% of our Asian sales are made around two key dates, mid-autumn
festival in September and Chinese New Year in January. These are important times
for gift-giving – to colleagues or family – and Royal Salute Scotch Whisky is perceived
as a very prestigious present”, explains Sophie Gallois.
The Royal Salute 50 Year Old Effect
The launch of Royal Salute 50 Year Old in June 2003, in tribute to Elizabeth II’s Golden
Jubilee, led to an unprecedented media coverage for the Royal Salute brand.
“255 bottles were put on sale from the 2nd of June 2003, at $ 8,888 each! All were
ordered within ten weeks of the launch. In Kathmandhu, bottle Number One was
given to Sir Edmund Hilary, the conqueror of the Everest, on the 50th anniversary
of his historical ascent. In Tokyo, customers were even queuing outside the store
selling the Royal Salute 50 from midnight before the launch day. In Singapore Airport,
a consumer bought 4 bottles at once. Korea, China, Taiwan, Singapore, Hong Kong –
most markets around the region held high profiles and successful launches” explains
Sophie Gallois.
The launch received comprehensive television and newspaper coverage. “We can
put a value of $ 9 million on this unique coverage”, says a delighted Sophie Gallois.
Importantly, events were held in major Asian airports, through very luxurious
merchandising displays, to expand the presence of the brand in duty free – a key
shop window for prestige brands.
“The Royal Salute 50 Year Old effect was reflected in the sales of the 21 Year Old, and
contributed to making Royal Salute a real success in 2003”, concludes Sophie Gallois.
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15
R E G I O N
ex-Seagram brands (chiefly Chivas Regal,
Chivas Revolve, Royal Salute and Martell)
in Taiwan. And in the hands of Pernod
Ricard they have achieved spectacular
results, well exceeding our targets and the
achievements of the previous third party
distributor.”
Favourable prospects in China
China represents a vast market, withnearly 100 million people possessing the
necessary purchasing-power to buy the
Group’s premium wine and spirits. This
market is experiencing economic growth
(+9.1% in 2003, according to the
National Bureau of Statistics) which
offers excellent prospects for the Group.
This is especially true since, as a result of
China’s membership of the World Trade
Organisation, the regulatory framework
will become more flexible.
“The entry of China into the WTO was
accompanied by two important events for the
drinks business”, explains Philippe Dréano.
“Firstly, a phased timetable for the lowering
of import duties has been drawn up for the
period to 2005. This means that our products will become more affordable for Chinese
consumers. The second revolution, which
will take place at the beginning of 2005, is
that Pernod Ricard China, as a 100% foreign-owned company, will be able to sell its
own brands with its own sales force and
thus, I hope, repeat the success of Taiwan.”
Today, Pernod Ricard China, having
cleared its products through customs in
the Shanghai Special Economic Zone,
hands over these products to wholesalers, who then sell them on to trade
customers and consumers. “So, after
2005 our commercial activities will be made
easier: Pernod Ricard will be able to have a
more direct relationship with its customers
and to manage its trade flows in a more
flexible way.”
Success of local brands in Thailand
To develop in its markets, Pernod Ricard
relies particularly on local brands which
help to support a sales network of criti16
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]
cal size. This makes it possible to maintain close relations with local distributors and to build its global brands in
these markets.
In Thailand, the Group’s local brands
thus enjoyed very strong growth in
2003: 100 Pipers is now the country’s
leading standard Scotch whisky, and
Master Blend, an ‘admix whisky’, is
achieving striking success.
Key markets:
China, Japan, Korea,
Duty free, Thailand,
Taiwan.
Launch of
the “Only a few
can tell”
campaign in Asia
Difficulties in the Japanese
and Korean markets
The Group also has a presence in various smaller but already ‘ripe’ markets
such as Singapore, Malaysia and Hong
Kong, and in developing markets such as
Indonesia, the Philippines and Vietnam.
In Japan, the Group’s principal Asian
market, Chivas Regal is the leading
imported spirit. As Philippe Dréano
explains: “In Japan we combine the distribution of Wild Turkey and Dita, as well as
the duty-free sales of the ex-Seagram
brands, through our subsidiary Pernod
Ricard Japan. Meanwhile Kirin, our
Japanese partner, distributes the ex-Seagram brands on the domestic market. It is a
difficult market, given the country’s economic situation.”
South Korea also represents an
extremely important market, since in
2003 it was the largest market for
Scotch whisky in Asia. This market,
which grew in 2001 and 2002, declined
in 2003, with whisky sales registering
▼
[
In December Martell launched its new “Only
a few can tell” campaign on its main Asian
markets (China, Hong Kong, Singapore
and Taiwan), where the brand is amongst
the top three in the sector.
“Only a few can tell” represents the new
positioning of the brand in Asia, known
as “discerning enjoyment”. For this campaign,
a television commercial and advertising
promote the star product in the region,
Martell Cordon Bleu.
The Asian community represents around 30%
of cognac consumption worldwide. In the
region, Martell is mainly targeting men aged
over 35 who appreciate the good things
in life, are successful professionally and are
generally sophisticated and well-to-do.
In its communications, Martell favours
a market by market approach rather than
a global approach. This campaign is therefore
independent of the regional “Rise above”
campaign in the United States.
Martell Elite Club
How do you develop
loyalty in “sophisticated”,
hard-to-reach consumers?
In response to this
question, two years ago
Martell created the Martell
Elite Club in Shanghai.
“To encourage consumer
loyalty, we created the club around the concept of the connoisseur
who appreciates the pleasures of modern life”, explains Jacques
Menier, Asia-Pacific sales director at Martell. “Through various
events, the Martell Elite Club introduces Martell to consumers
who are difficult to reach by other means of communication.”
Subsequently, another Martell Elite Club opened in Guangzhou
in 2003, and the Hong Kong establishment was launched this April.
Members of the Martell Elite Club are aged between 30 and
50 years old and are mainly private entrepreneurs or senior
managers in large international companies. They are regularly
invited to tastings, themed receptions and private parties.
In order to reach as many potential members as possible,
Martell has joined forces with major banks and luxury Chinese
department stores by organising joint events or sponsoring their
events with Martell products.
“The Martell Elite Club is one of Martell’s preferential means of
communication with Chinese consumers”, explains Julien Hémard,
Marketing Director of Pernod Ricard China. “As a privileged
member of the Martell Elite Club, they can experience better
cognac, better specialist services and good times in the company
of Martell.”
A dedicated customer service department enables members to
order Martell products and enjoy exclusive offers; for example,
they can purchase lines that are unavailable on their domestic
market. Members also have regular, personalised contact
with Martell and its account managers who, for example, call
them on their birthday and send them a gift. A special newsletter,
Elite Express, is also sent to all members.
The Martell Elite Club has been a real success since 2001.
Of its 1,000 privileged members, 44% buy more than two bottles
of Martell per month.
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[
R E G I O N
]
an overall fall of 10%, and a 17% fall in
the premium (12 year old) segment.
“A serious economic crisis, chiefly due to
the bursting of the consumer credit bubble,
and to fear of neighbouring North Korea,
caused our sales to plummet. No recovery in
the market is anticipated before 2005”,
Philippe Dréano confirms.
Japan is the second
largest market
for Chivas Regal after
the United States.
Developments in South Asia
Our objectives for 2004
“With regard to 2004, we are optimistic.
Of course, SARS still represents an underlying worry, but we are relatively relaxed
about it. We now know how to handle it,
and the Chinese authorities are paying particular attention to this concern, guaranteeing us more transparency in this area.
Economic growth is on the cards for the
coming year in the majority of Asian countries. China, Taiwan and Thailand, as well
as duty-free business, are expected to continue growing strongly. Our regional priorities are whisky with Chivas Regal, Royal
Salute and The Glenlivet, cognac with
Martell Cordon Bleu, and wine with
Jacob’s Creek and Wyndham Estate, as well
as our local brands 100 Pipers and Master
Blend in Thailand. We also have new
expansion plans for our priority brands in
2004. It has now been demonstrated that
our portfolio of brands perfectly matches the
needs of the market. We have strong positions and excellent teams in the region. Our
ambition is therefore clear: to become Number One in the region.” ■
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According to the investment bankers Goldman Sachs, India will be the third largest
economy in the world by 2050, due to the size of the country’s population and the
growth of consumerism.
In the shorter term, economic development and the emergence of new forms of social
trends represent positive factors for the growth of the Group in that country.
“In 2003, the Group’s wine and spirits sales saw a growth of 22% in India”, says Param
Uberoi, Managing Director of Seagram India. “This growth looks likely to be
consolidated in the future. In fact, we estimate that by 2005 India’s consumer base will
be 52 million people. 69% more than in 2000! Furthermore, Indians are increasingly
travelling abroad and taking home more western consumer habits.”
In addition to premium spirits such as Chivas Regal, it is particularly the white spirits
that are enjoying rapid growth among Indian consumers. Already strongly represented
with its Royal Stag and Imperial Blue whiskies, both distilled locally and selling over one
million cases a year, the Group has thus made an entry in 2003 into the vodka sector
with its Fling brand.
“All over the world, the consumption of vodka is on the increase”, says Param Uberoi.
“In India, this market is only just starting to get off the ground. With 600,000 cases sold,
the market saw a growth of 25% in 2003. Getting into this market represents a real
opportunity for us.”
Available in peach and blackcurrant-flavoured versions, Fling vodka is distilled from
a superior grain spirit and blended with vodka from the Lawrenceburg distillery (Indiana,
USA). ”This new product will enable us to reach new categories of consumer, including
young urban adults. A new advertising campaign, ‘Fling Space, dare to dream’,
is accompanying this launch”, concludes Param.
2003
1,859,000
1,658,000
1,502,000
1,343,000
1,232,000
1,003,000
702,000
Havana Club sales
(9-litre cases)
2002
2001
2000
1999
1998
1997
601,000
444,000
1995
1996
463,000
1994
Havana Club celebrates its
[
S U C C E S S
S T O R Y
]
HAVANA, ITS MUSIC, ITS COCKTAILS, FOR ALL OF US CUBA CONJURES UP VITALITY, SALSA RHYTHMS,
LEGENDARY PLACES, RUM. CUBA, IT IS ALSO TEAMS OF PEOPLE WITH A THIRST FOR VENTURE THAT
HAVE HELPED MAKE HAVANA CLUB ONE OF THE GREATEST SUCCESSES OF THE GROUP.
HERE WE TAKE A LOOK AT THE REASONS FOR THE SUCCESS OF HAVANA CLUB WITH ALEXANDRE
SIRECH, CHIEF EXECUTIVE OFFICER.
S
itting in an old house of typically
Cuban architecture, in the centre
of Havana, Alexandre Sirech
proudly talks about the path forged by
his teams. “Ten years ago, Havana Club
sold 463,000 cases. In 2003, we exceeded
1,859,000 cases and have maintained a
two-figure increase (+11% in 2003). We
have thus multiplied our sales four-fold!”
“This is the fruit of a lot of work by the
Pernod Ricard distribution network and our
Cuban teams. But we are not going to stop
when we are on such a roll. Our ambition is
to sell 5 million cases in ten years and to feature among the top 10 brands of premium
spirits on the planet.”
To do this, new products as well as new,
more contemporary packaging were
launched in 2003 (see box). Two
“Havana Club bandas”, composed
of musicians and Cuban
dancers, also travel the world
publicising the brand.
Background to the success
In 1993, the Group did not
distribute a brand of international rum. This meant the brand
and the Group’s portfolio immediately
complemented each other. Pernod
Ricard very quickly decided to turn this
genuine Cuban rum into a major con-
sumer product, pursuing a market leading position in the sector.
“Today, we are the leader in Italy, Cuba and
Romania. It might just be three markets, but only four years ago, this
wasn’t the case”, explains
Alexandre Sirech. “At the pace
we are moving at we could be
the European market leader in
rum within ten years.”
How did it become a success?
“Havana Club is a success, quite simply
because it is good rum” enthuses Alexandre
Sirech. Cuba’s exceptional soil for sugar
cane, the honey that comes from these
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▼
10
year
anniversary
21
[
S U C C E S S
S T O R Y
]
New packaging!
“The Havana Club packaging was perceived as
authentic, original” explains Alexandre Sirech. “However, it lacked the contemporary feel that is crucial for
a premium spirit like Havana Club”.
The packaging has thus been reworked, while retaining
the heritage of the real Cuban rum.
From 463,000 cases in 1994 to 1,859,000 in 2003!
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and member of Buena Vista Social Club.
“Our name is also linked to a legendary,
magical town. Phonetically, the brand name
can be expressed perfectly well in Spanish,
English or French. The name, the red sun
and the Giraldilla on the label lend an
authenticity and an enchanting magic to the
whole concept”, explains Alexandre Sirech.
“I honestly feel that if we had changed the
name of the product, we would not be selling
so much.” All the more so since Havana
Club rum is considered to be a national
emblem, a symbol of pride in its substantial domestic market.
Havana Club also offers the association
of a great product with the Group’s distribution network. Havana Club works
particularly well in fashionable bars and
nightclubs. The brand has used the
Cuban image to develop itself, with
advertisements linking Havana Club
with the Cuban lifestyle and culture.
Finally, the Cuban tourist boom has
made it possible to reach European customers at their holiday destination,
making them ambassadors of the brand
upon their return.
Three new products: Añejo Blanco,
Añejo Especial and Havana Club Loco
This success is not going to go away. In
fact a basic trend in the world of spirits
indicates that rum mixed with cola
appeals to the expectations of consumers, who are looking for a sweetertasting product. Havana Club therefore
launched Añejo Especial in 2003 on several markets. It constitutes a key element
of the genuine Cuba Libre cocktail.
“Furthermore, we have launched a new
ready-to-drink product in Italy in June
2003: Havana Club Loco. We have already
▼
sugar canes, which was already highlighted by Christopher Columbus in his
letters to the Spanish Crown, honey
from its canes, and the incomparable
know-how of the island’s rum “masters”
all contribute to the exceptional quality
of the Havana Club rums – something
that is immediately apparent at blind
tastings against other brands.
Furthermore, Havana Club has won
numerous prizes, including a Gold
Medal for Havana Club 7 Años in 1995
and 1997, a Silver Medal for the Añejo
Reserva in 1997 (Chicago – The Beverage Testing Institute), a Silver Medal for
Havana Club 3 Años in 1996 (LondonIWSC), and the 29th IBA cocktail
World Championship in Seville in
2003. We also point out that Havana
Club 7 Años was the preferred rum of
Compay Segundo, the Cuban singer
The “Banda” Havana Club
Made up of 12 young musicians and Cuban
dancers playing a wide variety of modern
Cuban music, the “banda Havana Club”
offers a complete show to nightclubs,
hotels and bars selling Havana Club. In the
middle of the show, a “freestyle” barman
performs a spectacular show.
Launched in July 2002, the banda’s shows
have met with astounding success! Two
teams travel from bar to bar and in 2003
reached more than 260,000 consumers
offering two types of show: a “conga
show” for improvised places, on the beach
or in the street and a salsa show for bars
and nightclubs.
“The banda Havana Club has become
a veritable small business, advertising
our product in a festive manner, reaching
directly to consumers” explains Alexandre
Sirech. “These young Cubans glow with
happiness and energy and communicate
the core value of the brand to the general
public: the joie de vivre.”
Sales multiplied by four in ten years
Distribution in Cuba
Since June 2003, Havana Club has been
distributing the Group’s products in Cuba.
The main products are, as well as Havana
Club, Chivas Regal, Martell, Ricard and
Jacob’s Creek.
Previously managed by a State company,
distribution represents a real challenge
on an island that is 1,200 kilometres long.
sold close to 10 million bottles over the first
six months of sale, an amount that puts it
already at number two on the market, and
we are clearly aiming at being in first position for 2004!” exclaims a delighted
Alexandre Sirech.
Havana Club Loco is made with rum
“Añejo Blanco”, and is the only brand
on the market to use natural fruit juices
and contain no preservatives. There are
both lemon and passion fruit flavours of
Havana Club Loco. Two new varieties
will be launched in 2004 to meet the
spectacular demand for the product.
The product has also been launched in
Cuba in December.
“With these new products, the new packaging of the range, the “Havana Club bandas”
and the formidable enthusiasm shown by
our distribution networks and our teams,
Havana Club will continue on from its
launch to make itself known as one of the
world’s leading brands” concludes Alexandre Sirech. ■
Development of Havana
Club’s position in the Impact
Top 100 classification
93rd – Havana Club enters the top100
1999 > 72nd
2000 > 63rd
2001 > 63rd
2002 > 54th
2003 > 50th– Havana Club enters the top 50
1998>
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[
S U C C E S S
S T O R Y
]
Second Havana Club Week
in March 2004
F
rom 8 to 11 March 2004 one of the brand’s landmark events took place: the Havana Club Week. After the huge success
of the first celebration in 2002, the second one smashed all records. Over several magic days, the city of Havana
was decked out in the colours of Havana Club, to welcome the distributors of the brand to a marketing and networking
seminar, as well as numerous journalists, trade customers and guests. A continuous programme of visits was organised.
At the same time the best barmen on the planet challenged each other for the 5th Havana Club International Grand Prix for
Cocktail-Mixing.
With music and a charged atmosphere, all these activities culminated in a spectacular gala dinner in Havana’s legendary
Cathedral Square (Plaza de la Catedral), to mark the 10th anniversary of Havana Club International S.A.
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[
B R A N D S
&
M A R K E T S
]
Gin - Tequila - Vodka
REPRESENTING 19% OF PERNOD RICARD SPIRITS VOLUMES, WHITE SPIRITS ARE A SEGMENT WHERE
THE GROUP'S COMPANIES ARE VERY ACTIVE – NEW BRAND LAUNCHES, NEW PRODUCTS, NEW PACKAGING.
WHITE SPIRITS CURRENTLY MAKE UP HALF OF THE GLOBAL MARKET FOR INTERNATIONAL SPIRITS –
A HIGH GROWTH POTENTIAL FOR THE GROUP.
White spirits
A
cross the world, vodka is the spirit most often drunk,
alongside rum. Pernod Ricard is present here, in
particular through its Polish wodkas, such as
Wyborowa, and more recently, with Seagram’s Vodka
launched in the United States in October 2002 by Pernod
Ricard USA.
“Thanks to our close relations with our distributors, we have identified a need in the vodka market in the United States” explains
Michel Bord, Chief Executive Officer of Pernod Ricard USA.
“We acted very quickly. Just six months were needed between the
decision and putting the first bottles in the market.”
This new Seagram’s Vodka was almost immediately met with
huge success. “End 2003, 500,000 cases have been sold, which is a
record, boasts Michel Bord, especially as we didn't invest heavily
in advertising.”
The flavoured vodka market is developing strongly – four
flavours with apple, vanilla, citrus and raspberry have also been
launched. New versions will be brought out in 2004.
“Seagram’s Vodka complements our product range. With Seagram’s
Gin, it gives good positioning to Pernod Ricard USA with regard to
bars across this immense market” concludes Michel Bord.
Launch of Wyborowa Single Estate in the United States
With its meaning of exquisite in Polish, a new Wyborowa
Single Estate super premium Polish wodka has been launched
in April in the United States. “We are responding here to a market opportunity – that of super premiums in the United States”
explains Isabelle Lurie, Marketing Director for Wyborowa
SA. “Our product stands out from other super premiums, due to the
fact that it bridges the gap between authenticity and modernity,
while other super premiums play only on their ‘fashion’ aspect. Our
target here is the 25-40 age-group, living in towns.”
Launch of the new
Wyborowa bottle
▼
Wyborowa will shortly be launching a new packaging. Its aim is
to be the visual reflection of the new strategic platform developed
around three aspects – authenticity, sophistication and sensoriality.
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a high growth potential
[
B R A N D S
]
Olmeca, a premium tequila
of acknowledged quality
Wyborowa Single Estate
has been launched in April
in the super premium
category in the USA. It will
be sold at around 30 dollars.
A distinctive feature
of Wyborowa Single Estate:
the rye used in
its production, the distillation
process,… the whole process
takes place in a single
and unique distillery,
producing a unique
and exceptional product.
Olmeca Gold was voted best product in the best 'Gold' Tequila
category by the Beverage Testing Institute – recognised worldwide
for its knowledge of spirits. The whole Olmeca range also won
the prize for best tequila mix from among 500 other tequilas.
Campaign used in Mexico and Russia.
Gin brands that are leaders on their markets
Gin is also important to the Group with heavyweight brands
in their respective markets. Seagram’s Gin is ranked number
one for gin in the United States and number two worldwide,
with over 3.3 million cases sold in 2003. Larios Extra Dry is
leader in Spain and Cork Dry Gin in Ireland.
The Seagram’s Gin brand was acquired at the time of the Seagram transaction in 2001. For the first time since 1992, it
returned to growth in 2003 up +3%. Also available in different
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M A R K E T S
Wyborowa
Single Estate
“We are to the wodka category what malt is to the whisky category,
with the addition of total control and traceability from seed to end
product” explains Isabelle Lurie.
With Wyborowa Single Estate, the Group is offering consumers a product that, at the same time, has roots going back
500 years and yet is totally modern.
“The Single Estate bottle was designed by Frank Gehry, architect of
the Guggenheim Museum in Bilbao and the new Disney hall opera
in Los Angeles” continues Isabelle Lurie. “He was able to perfectly
combine the history and tradition of Wyborowa with a sophisticated
modernity in his bottle design.”
It should be noted that Frank Gehry was not a neutral choice
– his mother was Polish. “Lastly, in order to accentuate the
upmarket and traditional aspect of this new product, the 750 ml and
1 litre bottled will be shipped in wooden boxes, like the great wines”
concludes Isabelle Lurie.
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2004 - NO. 44
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flavoured versions, Seagram’s Gin is the spirit brand drunk
most often by the Afro-American community. Marketing and
sales efforts are therefore particularly focused on this consumer segment.
Tequila Olmeca: to conquer the world
Produced in the Jalisco province of Mexico from distillation
of the agave, tequila really only took off at the end of the 20th
century in the United States and Europe. The fall in the price
of the agave – plant used to produce tequila – has revitalised
this market. Today, Mexico and the United States represent
84% of the tequila market.
Olmeca was acquired during the Seagram transaction and is
the tequila brand showing the strongest growth outside of the
United States and Mexico. In just three years, Olmeca has seen
growth of +61%, establishing itself as the fourth ranked tequila
brand exported across the world (outside of the United States).
“In order for it to expand, Europe represents a high potential for
tequila” explains Carlos Sanchez, marketing manager for
Olmeca. “Russia became its top market in 2003.” Sales here are
up +170% !
Pernod Ricard Mexico has developed a campaign called ‘The
party warrior’. “Our aim is to give Olmeca a joyful and spiritual
personality. So we have carried out special promotion activities in
discos and bars. A new website www.tequilaolmeca.com was also
launched last March.” ■
[
V I S I T O R
C E N T R E S
]
Jacob’s Creek Visitor Centre
a new environmental
standard
A
t the end of a route lined with
gum trees*, nestled amidst
vineyards in the Barossa Valley
and lying alongside the creek that gave it
its name, we find ourselves in front of a
contemporary building, mostly glass and
metal: the Jacob’s Creek Visitor Centre.
Inside, the Centre is radiated by sunlight.
From the terrace, visitors are immediately struck by the exceptional view over
the Jacob’s Creek vineyards that stretch
out over several hectares towards the
hills that form the Barossa Valley.
Created in 2002 as the home for Australia’s most successful wine brand, the
Centre hosts wine lovers who wish to
learn more about it. The Centre has
welcomed more than 200,000 visitors in
its first year, with an average of close to
600 visitors a day.
“Located an hour’s drive from Adelaide,
Jacob’s Creek Visitor Centre is one of Aus-
tralia’s leading wine tourism destinations”,
explains Laurent Lacassagne, Chairman
and CEO of Orlando Wyndham. “Its mission: to allow the largest possible number of
people to experience our Jacob’s Creek wines, to
enhance their knowledge of this product, and to
appreciate what they have discovered.”
The Centre was inaugurated on 27 September 2002 by Patrick Ricard, Chairman and CEO, Pernod Ricard, Richard
Burrows, Director General, Pernod
Ricard, and the Australian Trade Minister, The Honourable Mark Vaile, Member of Parliament. It has established new
standards for visitor centres in Australia.
It incorporates wine tasting, wine education, a restaurant and private dining
facilities.
“The roadway sign marking Jacob’s Creek,
set amidst the vineyards, is the mostphotographed sign in the Barossa Valley”,
explains Laurent Lacassagne.
▼
ORLANDO WYNDHAM HAS WELCOMED MORE THAN 200,000 VISITORS DURING THE FIRST YEAR OF ITS NEW VISITOR CENTRE.
* a tree of Australia
Origin of Jacob’s Creek
Jacob’s Creek was named after William Jacob, who was an assistant surveyor
to Colonel William Light, the man who planned the South Australian capital of Adelaide.
In 1847, Johann Gramp planted the first vines along the banks of Jacob’s Creek,
beginning more than 150 years of Orlando Wyndham wine history in the Barossa Valley.
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[
V I S I T O R
C E N T R E S
]
Respecting the environment
The environmental aspect of the site
was emphasised throughout the
design stage. To welcome its visitors,
Jacob’s Creek sought to adapt the site
as much as possible to its setting,
which reaped several awards for the
company (see box).
The natural colours of the region were
used to minimise visual impact. The use
of glass makes it possible to achieve savings in winter heating costs. Rainwater
is collected using an ultra-modern procedure, and wastewater is treated and
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reused for irrigation purposes. Solar
energy is used to give hot water, and the
access road is lit using a photovoltaic
technology.
Recyclable and sustainable materials such
as bamboo and slate were preferred in the
construction. Outdoors, a trellis was
made with recycled ironbank timbers
from a demolished bridge in the Australian state of Queensland, thousands of
kilometres from the Barossa Valley.
This special attention to the environment is part of the ambitious “Jacob’s
Creek Rejuvenation” project pursued
by Orlando Wyndham since 1997. This
project encouraged replanting of local
trees and shrubs, such as red gums and
blue gums along the banks of the creek.
This has enabled frogs, fish and different aquatic insects to return to the local
environment and in turn this has
attracted ducks and other native birds.
An exceptional promotional tool
A focal point for the Barossa Valley, the
Centre first of all offers its visitors the
chance to learn more about the wine
and winemaking techniques by visiting
▼
All-Round Concern for the Environment
Key figures
■ Australia’s
■
leading export wine
6,7 million nine-litre cases
sold in 2003
United Kingdom,
Australia and United States.
■ Key markets:
Awards
The Royal Australian Institute of
Architecture awarded three different
prizes to the Jacob's Creek Visitor Centre
in 2003 in the following categories:
sustainable architecture, interior
architecture, and a merit prize for
commercial architecture.
The Centre also received the Design
Institute of Australia’s Architectural
and Engineering Awards for Design
and Innovation.
at all level
the Gallery, followed by a journey
through the 150 years of winemaking
history in the valley.
Visitors can then experience the different
Jacob’s Creek vintages, or perhaps attend
a training session in the art of winemaking, then buy wines from the Jacob’s
Creek range and other wines from the
best Orlando Wyndham vintages.
Feeling a bit hungry after your visit?
The Centre has a restaurant that can
seat 60-90 guests. It offers contemporary Australian cuisine and serves
more than 100 lunches on a busy day.
Jacob’s Creek Visitor
Centre
For professional events such as vintage
releases, the Centre offers a specially
appointed VIP tasting room and a cellar.
The site also offers scheduled events. A
series of jazz concerts is organised in the
winter (July-August). In the summer
(January), the Centre hosts the “Jacob’s
Creek Tour Down Under” cycling race.
This six-day event draws cycling teams
from Australia, the US and Europe.
“The Jacob’s Creek Visitor Centre constitutes an exceptional promotional tool for our
brand as well as for the Group in Australia”,
concludes Laurent Lacassagne. ■
Barossa Valley Way,
Rowland Flat, South Australia,
Australia
Tel.: + 61 8 8521 3000
Fax: + 61 8 8521 3003
Open every day from 10 a.m. to 5 p.m.,
except Chistmas Day and Good Friday.
www.jacobscreek.com.au
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[
Award
N E W S
]
Record sales
Barry Walsh,
2003
Industry
leader
of the year.
Chivas Brothers
voted 'Distiller
of the year'
in the USA
Chivas Brothers has yet
again been voted “Distiller
of The Year” by Wine
Enthusiast Magazine
in the USA. The magazine
wrote: “Chivas Brothers
is one of the world's most
influential and prestigious
distilled spirits firms, with
a long-established and
expanding market share.”
New internet sites:
www.pastis51.fr
www.pernod-ricard-belgium.com
www.pernod-ricard-cesam.com
www.tequilaolmeca.com
Jameson, the undisputed “Hot Brand”
2003 has been another exceptional year for Jameson Irish Whiskey with sales for the year
reaching a record high of 1.6 million cases. Global Sales have increased by 8% and total
export sales are up by an impressive 11%. In 2003 Jameson was the fastest growing
International Whiskey in so many markets around the world that it is now the world’s fastest
growing International whiskey* ( source : Canadean 2003). Jameson is available in over
110 markets around the world, all with a double-digit growth, and often superior to 20%.
In a challenging global economic climate the brand’s dynamism remains unscathed having
recently been awarded the much coveted “Hot brand” status by Impact International
in the USA for the third consecutive year. Jameson is the first Pernod Ricard spirits brand,
to achieve this status three years in a row. Such has been the brands success in the USA that
in 2003 Jameson was also awarded the Adams “Fast Track” brand for the first time by Adams
Liquor Handbook which is an industry reference for the USA spirits market.
Jameson 18 Years Old Master Blenders selection has now been launched in several markets
to great acclaim for the brand. It was deemed to be the 2003 import blend of the year
in the USA and the master blender for Jameson Dr Barry Walsh was awarded the title
of “2003 Industry leader of the year” by the Malt Advocate at the New York Whisky fest.
Jameson has once again been particularly dynamic in the Travel Retail sector with
an increased growth rate of 23% for 2003. An impressive consumer promotion which
capitalised on the brands association with cinema and short film called “Jameson Take Five”
led to major sales increases for the brand when it was rolled out in London Heathrow
and Dublin Airports. The concept which was initially in conjunction with Aer Rianta
and the Irish Film Board was awarded a 2003 Frontier Award at the Annual Duty Free Fair
in Cannes.
Entreprendre, the magazine for Pernod Ricard shareholders
12, place des États-Unis, 75116 Paris - Tel.: + 33 (0)1 41 00 41 00 / [email protected]
Publishing Director: Francisco de la Vega / Edition Officer: Nicolas Petteau / Design & production: l’iroquois,
8, cité d’Hauteville, 75010 Paris / Photographic credits: Pernod Ricard Studio photo-Daniel Dewalle, Marc-André Desanges,
except pages 10-11: PPL/SIPA IMAGE and pages 12-13: GETTY/SIPA et EPA/SIPA / ISSN: 0757-3626
[
S P O N S O R S H I P
]
Interacting and defining ourselves
in relation to environment
“Sponsorship is one of the ways in which we, as a Group, intend to interact with
our social environment and to define ourselves in relation to it”, Patrick Ricard
explains. “This initiative shows our passionate commitment to the development
of artistic creativity in the countries where we are putting down roots.”
Since its foundation, the Group has striven to support many different initiatives
promoting art and culture. This support takes different forms: the water features
installed on the terraces of the Centre Pompidou, the creation of an original work
of art for the cover of each Annual Report, or, more recently, partnership with the
projected Musée du Quai Branly.
Among other things, the sponsorship activities in 2003 have enabled the Centre
Pompidou to acquire, thanks to the Group’s support, the sculpture “Tête en Profondeur” by Julio Gonzalez. As Francisco de la Vega, Vice-President, Communications, Pernod Ricard, explains: “This represents a ‘first’. It is in fact the first time
that a company has enabled the government to keep a national treasure of
modern art on French soil.” For Pernod Ricard it was an opportunity to take
advantage of new tax arrangements in France.
This acquisition was made under the partnership, dating from 1998, with the
Centre Pompidou, where the work by Julio Gonzalez will be exhibited. “By adopting this work, we are paying tribute to this life-source by placing ourselves in the
Group’s great tradition of patronage of the arts”, Patrick Ricard explains.
Support for the OstinatO Orchestra
In addition to this mission to help conserve our contemporary heritage, in 2003
the Group decided to encourage young musicians by sponsoring the Atelier OstinatO. This chamber orchestra is made up exclusively of young musicians under 25,
who are still studying. Established in 1997 by the conductor Jean-Luc Tingaud,
OstinatO enables them to complete their professional training as an orchestral
player for one or two seasons, and gives them a chance to perform regularly in
public (especially at the Opéra Comique in Paris).
1
Partnership with the Musée du Quai Branly
Pernod Ricard has recently concluded a partnership with a new
museum being built in Paris, the Musée du Quai Branly.
Situated on the banks of the Seine, a few steps from the
Eiffel Tower, this museum will reflect a unique form of
modernism, thanks to the creativity of its architect, Jean
Nouvel.
Devoted to the arts and cultures of Africa, Asia, Oceania
and the Americas, the museum will present many collections of works of primal art under one roof. With no less
than 3,500 items on show, it will open its doors beginning of
2006. In addition, a multimedia library will provide free access
to 25,000 further works. This will be a ‘first’ in the world of art.
“One of the water features at the museum will be christened with a
name chosen by common agreement between the Group and the Museum”,
Francisco de la Vega explains.
“The mission of this Museum is to present local art, combining knowledge with
conviviality. As I see it, these local roots, presented on a world scale, will be a
concrete demonstration of our commitment to ‘local roots, global reach’ within
our society”, says Patrick Ricard.
3
2
1.The official presentation of ‘Tête en Profondeur’ took place
on 9 December at the Centre Pompidou in the presence of Jean-Jacques
Aillagon, France’s Minister of Culture and Communication.
2.The OstinatO Orchestra
3.Patrick Ricard with Stéphane Martin, Chairman and Chief Executive
of the Musée du Quai Branly.
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