A socially and environmentally responsible company

Transcription

A SOCIALLY AND ENVIRONMENTALLY
RES PON SI BL E C O M PAN Y
From the beginning, Pernod Ricard’s Sustainable Development strategy has been a part of its core commitment
to respecting people and cultures.
Respect is a prerequisite for any lasting relationship. For the Group’s shareholders, it is expressed through regular
and transparent information; for our employees, in training and a personal development policy;
for consumers, by offering the best quality products and promoting responsible drinking; towards the environment,
it is expressed through responsible management of energy and raw materials; and, finally,
we show respect for our various business partners and suppliers by offering to share the same human and business ethics.
For Pernod Ricard, these various commitments are real and inescapable. They are key elements in a Sustainable
Development approach, along with the Group’s hallmark, its state of mind and corporate culture of conviviality,
which underpins every undertaking by our employees and with our stakeholders.
A S O C I A L LY A N D E N V I R O N M E N T A L LY R E S P O N S I B L E C O M PA N Y
A company
historically committed
to sustainable development
United Nations Global Compact
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Since 1938
Employee share ownership at Ricard.
2005
Pernod Ricard joins the ICAP (International Center for Alcohol
Policies).
1966
Oceanographic Institute founded by Paul Ricard.
Inclusion in the FTSE4Good index series for extra-financial
analysis.
1971
Creation of the IREB (Institute for Scientific Research on
Beverages).
Financial contribution to the five-year programme for the
construction of drinking water tanks on Turtle Island in Haiti.
1981
The Paul Ricard Oceanographic Institute co-develops with Elf
Inipol EAP 22, a product to accelerate the natural hydrocarbon
biodegradation processes in sea water which made a big contribution to cleaning up Alaska’s coastline in 1989 after the Exxon
Valdez oil spill.
2006
Extension of the“pregnant woman” warning label displayed on
all the Group’s products sold throughout the European Union.
1982 Implementation of the means for employees to collectively
express their views directly.
1987
Organisation of the Colloquium on the Environment on the Island of Les Embiez by the Oceanographic Institute.
1995
Yvan Martin, the Director of Research of the Oceanographic
Institute, wins a French Science Academy award (the Grand Prix
de l’Académie des Sciences).
Since 1995
Gradual adoption by Ricard of the 8-panel shipping case
technology reducing the quantity of material used.
Since 1997
Support to the Centre Georges Pompidou through a cultural
partnership.
2001
Adherence to the European Recommendation on the drinking
of alcohol by children and adolescents.
Triple certification with regard to the Environment, Quality
and Health & Safety obtained by Ricard (the first triple-certified
French food company).
2003
Ethics charter within the Group, disseminated in 17 languages.
Signature of France’s Apprenticeship Charter.
In April, donation to the Conservatoire du Littoral (French
coastal conservation organisation) of 200 acres of pine forest along
the Mediterranean coastline so this land cannot be sold and can
be enjoyed by inhabitants and tourists alike.
Since 2006
Development of a Sustainable Development Charter with
concrete commitments with regard to shareholders, employees,
consumers, the environment, suppliers and business partners.
Integration of two paragraphs relating to Social and Environmental Responsibility policy in Pernod Ricard’s General Conditions of Purchase.
2007
From July onwards, participation in the Environment Round
Table process implemented by the French government.
Participation in the European Commission’s Alcohol and Health
Forum.
Pernod Ricard adopts a Code of Commercial Communication.
Since 2007
Pernod Ricard’s suppliers are asked to reply to the “Involvement
in the respect of Sustainable Development” questionnaire in
order to assess their impact on the environment and their commitment with regard to social responsibility.
2008
Certification status:
ISO 14001: 81% of the Group’s industrial production sites, corresponding to 93% of the volumes produced.
ISO 9001: 88% of the industrial production sites, corresponding
to 97% of the volumes produced.
Since 2003
Pernod Ricard adheres to the Global Compact.
Since 2004
Adoption of an integrated global Quality–Safety–Environment
policy setting an objective of excellence for all the subsidiaries,
particularly through triple certification of all the production sites
world-wide.
2004
Signature of the Diversity Charter implemented by the French
government.
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“Social commitment” initiatives
“Responsible Drinking” initiatives
“Environment” initiatives
“Supply Chain & Purchasing” initiatives
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Our commitment to
Shareholders
Listen
to our stake holders
Commitments
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Employees
Share
a global ambition
Challenges
P romoting shareholder value creation.
Ensuring transparent and ethical decisionmaking.
I nforming shareholders regularly and
transparently with regard to Group
strategy and topical issues.
Fostering employee loyalty to enhance
know-how retention.
A
ssisting in the personal and professional
advancement of employees.
Promoting international mobility.
Encouraging entrepreneurial spirit.
P romoting diversity.
Favouring a dialogue between employees
and management.
Responses
roadcasting of live/recorded press
B
conferences on the website.
36 press releases issued this year.
Patrick Ricard and Pierre Pringuet are
among the CAC 40 bosses who are the most
highly appreciated by French journalists
for the quality of their communication.
C reated in 2006, the Club Premium,
dedicated to shareholders who own
more than 24 shares, now has over
10,500 members.
Two issues of the Entreprendre magazine
were published this year with one devoted
to the history of alcohol and the other to
vodka.
60,000 visits to the Group’s website every
month.
ll teams are made to feel responsible due
A
to decentralisation.
An average length of service of 9.9 years,
guaranteeing job expertise.
Turnover of 5%, reflecting employee
attachment to their company.
33% of the managers recruited this year
came from inside the Group.
Nearly 17 million euro were spent on
training this year.
Over 12,000 employees received training
in 2008/2009.
A n average of 1,450 euro is spent per
employee trained.
Annual appraisal interviews have been
introduced in most subsidiaries.
A ctive employee bodies representing
76% of employees.
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Sustainable Development
Consumers
Promote
responsible drinking
and offer quality products
|
Suppliers
& Business Partners
Environment
Preserve the environment
and conserve natural resources
Share
our ethics
P romoting prevention of risky alcohol
consumption, particularly among young
adults, drivers, pregnant women and
employees.
R
esponding to evolving tastes and
consumption patterns.
Justifying the “Premium” status of our
brands through impeccable product
quality.
L imiting the environmental impact of our
business activities by:
1) promoting sustainable farming,
2) saving water resources,
3) reducing energy consumption,
4) reducing the environmental impact of
waste and packaging.
nsuring respect for ethical rules relating
E
to employment law.
Guaranteeing compliance with ethical rules
by the Group’s Purchasing function.
S haring the Group’s environmental
commitments with our suppliers.
Compliance with an internal code of ethics
on commercial communications since
June 2007.
Displaying a “pregnant women” warning
logo on all bottles sold in the European
Union and inclusion of a moderate drinking
message on all advertising since 2006.
Strengthening of internal control procedures with regard to ethical advertising:
204 campaigns were assessed this year
(200 of these received a “green” opinion).
O
peration of an intranet site devoted to
best practices in the area of responsible
drinking.
S ystematic evaluation of all strategic
products compared with competitors. The
evaluation protocol, introduced for the first
time in 2007, was applied to 9 of the Group’s
strategic brands during the fiscal year.
Quality controls at every stage of production
and storage, right up to the store shelves.
10,000 products were controlled this year
in Europe and the United States during an
annual audit conducted at points of sale.
1 00 out of 113 industrial sites were
certified to ISO 9001 as of 30 June 2009,
thus increasing the proportion of volumes
produced at certified sites to 97%.
Four-fold certification policy: with the
addition of ISO 22000 in 2009 to the
3 certifications already obtained: ISO 9001,
ISO 14001 and OHSAS 18000.
At 30 June 2009, 81% of the industrial sites
are certified to ISO 14001, thus increasing
the proportion of products produced at
such sites to 93%.
Implementation of an Environment Action
Plan accompanied by quantified targets for
reducing water and energy consumption,
rolled out at the level of each subsidiary.
A nnual monitoring of environmental
indicators on all the production sites to
manage achievement of the targets.
Development of a tool to enable Brand
Owners and Distribution Subsidiaries to
measure their carbon footprint, tested
internally by six pilot entities.
Deployment of the ecodesign programme
for products developed by the Group.
Training of the packaging and marketing
teams of Brand Owner subsidiaries.
Specific focus on lightening the weight of
glass used.
R
econfiguration of the site audit tool with
strengthening of the environmental section,
sharing of expertise and dissemination of
best practices in subsidiaries across the
globe.
G
iving research efforts a new “Environmental” focus in order to be capable, in
the medium term, of proposing innovative
solutions concerning energy management,
waste water treatment or the use of greener
bottles.
C ontinued implementation in all
subsidiaries of Supply Chain and planning
processes to improve sales forecasting and
communication between the commercial
and industrial functions, in order to
upgrade activities and thereby reduce
waste and overstocking.
Systematic attempts to find alternative
solutions to road transport for finished
products.
Revision of the strategies per purchase
category in order to integrate concrete
actions, whenever possible, to reinforce
the Sustainable Development aspect.
Implementation of projects to lightweight
packaging in order to generate less waste.
Close involvement of our employees and
packaging suppliers in our eco-design
initiative.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Governance:
continuity and trust
To what do you attribute the quality of governance
in the Group?
Questions with...
Didier
Pineau-Valencienne,
Independent Director,
Chairman of the Audit
Committee
There is a particular state of mind that holds sway at Pernod Ricard,
a relational ability that the Chairman of the Board Patrick Ricard
has managed to instil: It is both a relationship of trust based on
commitments kept, and an uncompromising search for continuous
improvement. The Group has always strived to identify needed
improvements, to apply them and to evaluate the results. There
is a firm will to create a management model.
Patrick Ricard has known how to share his vision and infuse a
culture in which the general interest prevails. Current Executives
and managers have seamlessly adopted this approach, and strive
to transmit it throughout the Group. Everyone contributes, led
by Patrick Ricard and Pierre Pringuet, who were the first CAC 40
Executives to give up their retirement bonuses. This initiative
was welcomed by shareholders at the Annual General Meeting as
another hallmark of Pernod Ricard’s ethics.
Governance issues received a lot of press coverage
in 2008. How is Pernod Ricard doing in this arena?
Have you nonetheless identified areas for possible
improvement?
First, I should mention the abundance and quality of the
information available to the Pernod Ricard Directors, which is
the first sign of good governance. The various reports on strategic,
financial, budgetary and legal issues submitted to the Board
demonstrate the Group’s commitment to a transparency ethic. They
allow the Audit Committee to effectively monitor performances
and to carry out necessary controls, including for regional entities.
Everything is done to ensure active participation by board members
at the various meetings. The depth of dialogue between participants
is another strong indicator of good governance. Members do
not hesitate to think freely and develop a critical view to move
discussions forward.
Furthermore, appointing Independent Directors as the Chairmen
of the three main committees (Appointments Committee,
Remuneration Committee and Audit Committee) ensures effective
oversight over the way the Company operates.
Of course, progress can always be made, for example by improving
the French and foreign audits, their number and their frequency.
We could reduce the time between two audits from four to two
years. The method could also be further optimised to limit the
risk of error.
The 2008/2009 financial year witnessed an important
change in Group governance: The separation
of the functions of Chairman from those of CEO.
How would you assess this first year?
The transition was handled remarkably well, which proves that
it was perfectly prepared. This is also the result of a pertinent
strategy based on continuity. By remaining Chairman of the Board
of Directors, Patrick Ricard is continuing the work that he began
over thirty years ago. His perfect mastery of governance issues
allows him to pursue this task with the greatest ease. This is an
advantage for the new CEO Pierre Pringuet, who, sure of this
support, can fully commit his own knowledge and expertise to
the benefit of the Group.
The involvement of the Ricard family in the Group’s development
is another guarantee of its long-term stability. The strength
of their representation on the Board of Directors shows their
confidence in the future of Pernod Ricard.
Bar Raphaël
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Pa r i s , Fra nc e
In a mahogany, softly-lighted setting, the bar of the Hôtel Raphaël, one of the highest luxury hotels in the
French capital, is popular with businessmen and diplomats from all over the world. Its intimate, cosy decor
gives it a very British atmosphere.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Board of Directors
Organisation and method of operation
The Board of Directors is composed of 14 members, 7 of whom have the status of Independent Directors. Pernod Ricard applies the
independence criteria provided for in the Afep/Medef corporate governance code.
Separation of the duties of Chairman
from those of Chief Executive Officer
In order to adapt the Group’s governance and to allow for a natural and operational transition in the Company’s Executive
Management, the Board of Directors decided to separate the duties of Chairman from those of Chief Executive Officer. Mr. Patrick
Ricard’s term as Chairman of the Board of Directors was therefore renewed during this financial year while Mr. Pierre Pringuet was
appointed as Chief Executive Officer.
The Chairman of the Board of Directors organises and directs the Board’s work and reports to the Shareholders’ Meeting on this work.
He oversees the proper functioning of the Company’s managing bodies and ensures in particular that the Directors are in a position
to fulfil their role. The Chief Executive Officer is granted full powers to act in the name of the Company under any circumstances.
Directors*
Patrick Ricard
Pierre Pringuet
Béatrice Baudinet François Gérard
Chairman of the Board
of Directors
Chief Executive
Officer
Permanent
representative of Paul
Ricard SA
Rafaël
Danièle Ricard
Gonzalez-Gallarza
César Giron
Independent Directors
Nicole Bouton
Wolfgang Colberg Jean-Dominique
Comolli
Lord Douro
Didier
Gérard Théry
Pineau-Valencienne
William H. Webb
* As the terms of office of seven Directors are due to expire, the Board, following the recommendation made by he Appointments Committee, will put to the vote of the shareholders at the Combined Ordinary and Extraordinary
General Meeting of Pernod Ricard on 2 November 2009 the renewal of the terms of office of Mrs. Danièle Ricard, Mr. Jean-Dominique Comolli, Lord Douro, and that of Paul Ricard S.A. which will be represented
by Mr. Alexandre Ricard who will replace Mrs. Béatrice Baudinet.
Furthermore, the Board will submit to the Shareholders’ Meeting the appointment of three new Directors: Mr. Gérald Frère, Mr. Michel Chambaud, and Mr. Anders Narvinger.
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The Board
of Directors
in 2008/2009
Appointments Committee
During the financial year ended 30 June
2009, the Board of Directors met ten
times with an attendance rate of 90%.
It approved in particular the annual
and interim financial statements and
the terms of financial communications,
reviewed the budget, prepared for the
Combined Ordinary and Extraordinary
Shareholders’ Meeting and, in particular,
approved the draft resolutions.
The current state of the business was
discussed at each of these meetings:
business activities, results and cash flow.
It verified the conditions of integration
of Vin&Sprit throughout the entire
financial year.
In managing debt, it regularly
monitored the progress of the planned
asset disposal programme, authorised
a capital increase maintaining
preferential subscription rights,
initiated a securitisation programme for
trade receivables and decided to proceed
with a bond issue. It also carried out a
formal evaluation of its work.
Mr. Patrick Ricard, Chairman of the Board of Directors attends the meetings of this
committee considering new appointments.
Chairman: Mr. Jean-Dominique Comolli, Independent Director
Members:
Lord Douro, Independent Director
Ms. Danièle Ricard
The Appointments Committee’s main responsibilities include deciding on the procedure
to look for new Directors and helping to select them, and also ensuring the application
and compliance with the principles of governance by the Board of Directors. During
the 2008/2009 financial year, the Appointments Committee worked in particular on
defining the responsibilities of the different managing entities within the framework of
the separation of the duties of Chairman and Chief Executive Officer, and the compliance
of the Committee’s operating procedures with the Afep/Medef recommendations of
December 2008. As it has in the past, the Committee also prepared for the renewal of
the terms of office of the Directors which are due to expire at the Annual General Meeting
on 2 November 2009 and reviewed new candidates paying particular attention to the
independence criteria.
Remuneration Committee
Chairman: Mr. Jean-Dominique Comolli, Independent Director
Members:
Lord Douro, Independent Director
Mr. William Webb, Independent Director
The Remuneration Committee’s main task is to define remuneration policy for the Group’s
Executive Officers. This policy covers all the elements of the remuneration of each Senior
Executive, i.e. the level and amount of fixed and variable remuneration, but also the
amounts and volumes of stock option grants, as well as pension and social protection
schemes.
Board
Committees**
During the 2008/2009 financial year, the Committee members worked in particular on
adapting this policy in the light of the separation of the duties of Chairman from those
of Chief Executive Officer as from 5 November 2008, as well as on analysing whether this
policy was in line with the Afep/Medef recommendations of December 2008.
The Board of Directors delegates
responsibility to its specialised
committees for the preparation
of specific topics submitted for its
approval.
Audit Committee
The Strategic Committee
Chairman: Mr. Didier Pineau-Valencienne, Independent Director
Members:
Mr. François Gérard
Mr. Gérard Théry, Independent Director
Mr. Wolfgang Colberg, Independent Director
Chairman: Patrick Ricard
Members:
Mr. Rafaël Gonzalez-Gallarza
Mr. François Gérard
Ms. Danièle Ricard
The purpose of the Audit Committee is in particular to review the draft financial statements,
check the appropriateness and consistency of accounting methods and principles and
ensure the quality of the financial information issued to shareholders. It also monitors the
effectiveness of the internal control and risk management systems. It examines any matters
of a financial or accounting nature that are referred to it by the Board of Directors.
The Strategic Committee met five times
during the financial year. Its main
responsibility is to prepare the strategic
policies submitted for approval to the
Board of Directors.
During the 2008/2009 financial year, it met five times with an attendance rate of
94%. In addition to reviewing the financial statements and monitoring the Group’s cash
flow and debt, the Audit Committee approved the Group Internal Audit plan and reviewed
the reports issued during the financial year (18 assignments were carried out). In the area
of risk management, it reviewed in particular the conclusions of the self- assessment
questionnaires sent to the Group’s main subsidiaries every year with the aim of evaluating
whether their internal controls were effective and in line with the Group’s principles.
** For further information, see pages 28 to 31 of the Reference Document.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Management structures
The Executive Committee
Holding Company (from left to right)
Pierre Pringuet, Chief Executive Officer
Thierry Billot, Managing Director, Brands
Gilles Bogaert, Managing Director, Finance
Michel Bord, Managing Director, Distribution Network
Bruno Rain, Managing Director, Human Resources
Ian FitzSimons, General Counsel
Brand Owners (from left to right)
Lionel Breton, Chairman & CEO of Martell Mumm Perrier-Jouët Jean-Christophe Coutures, Chairman & CEO of Pernod Ricard Pacific
Philippe Guettat, Chairman & CEO of The Absolut Company
Christian Porta, Chairman & CEO of Chivas Brothers
Alexandre Ricard, Chairman & CEO of Irish Distillers
Distribution Network (from left to right)
Pierre Coppéré, Chairman & CEO of Pernod Ricard Asia
Philippe Dréano, Chairman & CEO of Pernod Ricard Americas
César Giron, Chairman & CEO of Pernod
Laurent Lacassagne, Chairman & CEO of Pernod Ricard Europe
Philippe Savinel, Chairman & CEO of Ricard
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General Management
The Executive Committee is the Group
management body that comprises
General Management, the General
Counsel and the managing directors of
the main subsidiaries.
The Group’s General Management is carried out by the Chief Executive Officer, and
four Managing Directors for Finance, Human Resources, Brands and the Distribution
Network.
The General Management leads the meetings of the Group Executive Committee and the
meetings of the Holding Company Management. Four times a year, meetings are held with
the direct subsidiaries; strategy, the three-year plan, the budget and a business review are
dealt with at such meetings.
It liaises between the Holding Company
and its subsidiaries, as well as between
the subsidiaries themselves (Brand
Owners and Distribution Subsidiaries).
Under General Management’s authority,
it is responsible for conducting the
Group’s business activities and ensures
that its main policies are applied.
Holding Company Management
The General Management holds meetings of the main members of the Holding Company
Management for the purpose of:
◆ exchanging information on the general way in which the Group functions, the actions
undertaken or to be taken by each of the functional management departments;
◆ preparing and coordinating the actions to be taken by the Holding Company;
◆ preparing for certain decisions that are the responsibility of the Group’s General
Management.
In this capacity, the Executive
Committee:
◆ examines the Group’s activity and its
variations with respect to the business
plan;
◆ gives its opinion regarding the
establishment of objectives (income
statement, debt and qualitative
objectives);
◆ periodically reviews the Brands
strategies;
◆ analyses the performance of the
network of the Group’s Distribution
Subsidiaries and recommends the
necessary organisational adjustments;
◆ approves and enforces the adherence
to the main Group policies (human
resources, good marketing and business
practices, quality safety environment
policies, social responsibility etc.).
The Executive Committee meets eight
to ten times a year.
Executive
Office
The Executive Office is the permanent
body responsible for coordinating and
directing the Group. It is comprised of
the Group’s General Management and
the General Counsel.
The Executive Office prepares and
examines all decisions relating to
the Group’s affairs and submits such
matters to the Board of Directors where
its approval is required. It also organises
the Executive Committee’s work.
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Front row (from left to right) u Jérôme Cottin-Bizonne, Vice President, Audit and Business
Development u Bruno Rain, Managing Director, Human Resources u Gilles Bogaert, Managing
Director, Finance.
Middle row (from left to right) u Ian FitzSimons, General Counsel u Jean Rodesch, Vice President,
Institutional Affairs u Michel Bord, Managing Director, Distribution Network u Pierre Pringuet,
Chief Executive Officer u Thierry Billot, Managing Director, Brands u Martin Riley, Chief Marketing
Officer u Armand Hennon, Vice President, Public Affairs, France.
Back row (from left to right) u Armin Ries, Vice President, Special Advisor to General Management u
Olivier Cavil, Vice President, Communications u Jean Chavinier, Vice President, Information
Systems u Jean-Pierre Savina, Vice President, Industrial Operations u Denis Fiévet, Vice
President, Financial Communication & Investor Relations.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Improvement
in the operating margin
and debt reduction
Following the acquisition of Vin&Sprit in July 2008, Pernod Ricard has shown its ability to adapt its financial strategy
in the face of the crisis. During the past financial year, the Group’s net profit from recurring operations crossed the
landmark figure of one billion euro for the very first time and rapid and significant debt reduction took place.
Improvement of the financial profile
The income from this capital increase, the strong cash flow generated
and the asset disposal programme which is already well advanced will
make it possible to strengthen the Group’s balance sheet and cover
the majority of financing needs prior to 2013, upgrading its growth
outlook accordingly.
On 14 May 2009, Pernod Ricard carried out a capital increase for a gross
amount of 1,036 million euro, maintaining preferential subscription
rights. This operation falls within the scope of the tenth resolution
adopted by the Annual General Meeting on 7 November 2007 and was
only open to the public in France.
Furthermore, taking advantage of the strengthening of its financial
profile and the improvement in the conditions of bond issues, Pernod
Ricard carried out a bond issue on 15 June 2009 for €800 million,
maturing on 15 January 2015 and offering a 7% coupon. This programme
was also oversubscribed and generated a very favourable margin.
The operation was a huge success and was 2.3 times oversubscribed.
Paul Ricard SA and its subsidiary Lirix had announced their support
for the operation and their intention to subscribe to it on the basis of
the amount of the income from sale of a fraction of their preferential
subscription rights. Groupe Bruxelles Lambert had stated its intention
of subscribing in full for its share of the operation.
The income from this bond issue was used to repay the most shortterm tranches of the syndicated loan making it possible to extend the
Group’s debt maturity.
Summar y of Group s tock mar ket data
2006/2007
Number of listed shares at 30 June
Average number of shares (excl. treasury shares)
Stock market capitalisation at 30 June (€M)
Diluted Group net profit from recurring operations per share
Diluted Group net profit from recurring operations per share (after restatement)
***
2007/2008
2008/2009
109,611,879
219,682,974
258,640,536
227,906,883*
230,321,233**
236,490,745
17,920
14,334
11,605
7.75
4.13
4.27
3.65
3.89
4.27
Dividend per share
2.52
1.32
0.50
Dividend per share after restatement***
1.19
1.24
0.50
Average monthly volume of trades
12,013
21,039
31,627
Average monthly volume of trades after restatement***
28,286
24,769
36,733
165
83.33
67.9
77.81
78.59
64.04
120.42
61.65
38.6
Highest share price for the financial year
Highest share price for the financial year after restatement
***
Lowest share price for the financial year
Lowest share price for the financial year after restatement
***
Average share price for the financial year
Average share price for the financial year after restatement***
Share price at 30 June
Share price at 30 June after restatement***
56.79
58.15
36.41
145.26
74.03
49.63
68.5
69.82
47.54
163.95
65.25
44.87
77.32
61.54
44.87
* After taking into account the two-for-one stock split on 15 January 2008 and the capital increase of 14 May 2009.
** After taking into account the capital increase of 14 May 2009.
*** Historical data has been restated to take into account the capital increase by subscription of new shares effective on 14 May 2009 and on the basis of 3 new shares for 17 existing shares at a subscription price of €26.70.
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Did the economic crisis negatively impact
business growth?
Questions with...
Gilles Bogaert,
Managing Director, Finance
Career path
◆ After joining the
Group in July 1995 as an internal
auditor, following four years with
Arthur Andersen, Gilles Bogaert was
appointed VP for Administration and
Finance at Pernod Ricard Argentina
in November 1998, before becoming
VP for Administration and Finance
at Pernod Ricard Central & South
America (CESAM) in February 2002.
In June 2003, he was appointed
VP Audit and Development for Pernod Ricard and in July 2008,
Chairman and CEO of Pernod Ricard Brasil. He became Managing
Director, Finance in July 2009.
Although the Wine and Spirits sector held ground better than many
other industries, the economic environment certainly impacted
the growth of our business, particularly during the second half
of the financial year, both through its effect on consumption
(especially on-premise) and destocking by distributors. Pernod
Ricard was nonetheless able to adapt, by taking advantage of
continued growth in the major emerging markets (China, India,
Latin American countries, Eastern Europe, South Africa) and in
certain Western European countries (France and Germany in
particular) to compensate for more difficult markets (Duty Free,
United States, Korea, Spain). Despite a depressed environment,
the Premium brands overall performed as well as the portfolio
as a whole (flat sales, excluding currency impact and changes in
scope of consolidation), in particular due to growth for Martell,
Jameson, The Glenlivet and Havana Club.
The Group showed its ability to react quickly to the crisis by
controlling costs, capital expenditure and overheads (overheads/
sales ratio equal to 15.6%, a decrease of 60 bps) and accelerating
debt reduction.
How would you assess the Group’s performance
in 2008/2009?
What are your main objectives for the coming year?
Our priorities are:
Our annual results demonstrate the Group’s resilience. In spite
of a difficult economic situation, Pernod Ricard registered the
highest net profit from recurring operations in its history, crossing
the threshold of one billion euro with growth of almost 13% over
the course of the financial year. The acquisition of the Swedish
company V&S, stable sales (excluding currency impact and
changes in scope of consolidation) and careful management of
costs, advertising and promotion expenses, and financial costs, all
contributed to this highly satisfactory performance. Pernod Ricard
registered a record operating margin of 25.6%, a progression of
250 basis points.
The integration of V&S into the Pernod Ricard organisation was
clearly the major event of the year. This process took place more
rapidly than anticipated: almost three-quarters of the expected
synergies, amounting to €110 million, had already been delivered
at the end of the financial year, and the transaction proved to be
accretive from the first year.
Finally, the excellent free cash flow from recurring operations
(€1.3 billion), resulting in particular from strict management
of working capital and industrial capital expenditure, the asset
disposals and the €1 billion capital increase, allowed for rapid and
significant debt reduction. The net debt/EBITDA ratio thus dropped
from 6.2(1) at end June 2008 to 5.3 at end June 2009.
◆
To continue the Group’s debt reduction with the aim of generating
cumulative free cash flow from recurring operations of around
€3 billion between 2008/2009 and 2010/2011, and pursuing our
programme for disposal of non-strategic assets (€700 million to
date out of a total programme of €1 billion, including the sale of
Tia Maria in July 2009);
◆ To continue to invest in brand/market pairings offering the
greatest potential, which is clearly the most effective driver to
maximise growth in sales and profits over the long-term.
Finally, we will continue to pursue strict cost management, through
continued pooling of purchasing and measures aimed at limiting
our overheads.
(1) Pro forma opening ratio following the V&S acquisition.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Pernod Ricard and the CAC 40
Pernod Ricard is listed on the Paris stock exchange on the NYSE Euronext SA Paris Eurolist (compartment A) SRD (deferred settlement service). The
Group is a component of the CAC 40 index, accounting for 1.47% of total market capitalisation (information at 30 June 2009). The Pernod Ricard
share is eligible for inclusion in French share savings plans (Plan d’Épargne en Actions - PEA) and for the SRD.
The year on the s tock mar ket
Denis Fiévet, Vice President, Financial Communication and Investor Relations
In a very difficult market environment dictated by the global economic and financial crisis, Pernod Ricard’s
share price performed slightly better than the CAC 40 during the 2008/09 financial year: Our share price in fact
dropped 27.1% compared with a CAC 40 which lost 29.2% of its value. Our stock demonstrated its ability to
outperform the CAC 40 once again this year, despite a challenging environment.
The share’s relative resilience is even more remarkable in a market characterised by shrinking interest in the
consumer goods industries overall, prudence shown with regard to companies with significant levels of debt,
as well as wariness towards the Group’s strong geographic exposure in emerging countries.
Change in the share price over one year,
in comparison with the CAC 40 index, and volumes of trades*
110
06/30/08
� 61.54
06/30/08
4,434.85 pts
100
90
06/30/09
�44.87
-27.1%
80
06/30/09
3,140.44 pts
-29.2%
70
60
2,143
917
1,284
2,363
1,394
987
1,096
1,345
1,492
2,647
1,188
922
09
9
20
0/
06
/3
/2
00
9
05
04
/2
00
9
03
/2
00
9
02
/2
00
9
01
/2
/2
00
8
00
8
12
11
/2
00
8
10
/2
00
8
/2
09
/2
08
00
8
00
8
00
/2
07
06
/3
0/
20
08
50
Pernod Ricard
CAC 40
Number of share exchange per stock market
* Volumes exchanged on Nyse-Euronext only.
Value of Pernod Ricard share over five years
77.32
60.91
51.87
61.54
6,054.93
4,965.96
44.87
4,434.85
4,229.35
3,140.44
06/30/05
72
|
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06/30/06
| 06/30/07
06/30/08
Restated Pernod Ricard share price (euro)
CAC 40 share price (points)
06/30/09
|
2008/ 2009
annual
re p o r t
|
Change in net dividend (restated)
over the last five financial years (in euro)
Dividend: €0.50
per share - Distribution
of bonus shares
1.5
1.19
1.2
1.24
0.99
0.9
0.84
0.6
0.50
0.3
0
04/05
05/06
06/07
07/08
08/09
As announced by the Company on 8 April
2009, a distribution of bonus shares, on the
basis of one new share for 50 old shares, is
to be made before the end of 2009 subject
to the shareholders voting in favour of the
22nd resolution (increase in share capital
by the capitalisation of reserves). This
distribution would be made in addition to
the dividend for the 2008/2009 financial
year which has already been paid to the
shareholders in the form of an interim
dividend.
A return to the normal policy of a cash
distribution amounting to approximately
1/3 of net profit from recurring operations
is planned for the dividend as from the
2009/2010 financial year.
Breakdown of share
capital at 30 June 2009*
3.3 %
6.9 %
27 %
8.8 %
9.7 %
17.3 %
12.7 %
14.3 %
US institutional investors
French institutional investors
Paul Ricard SA
Other foreign institutional investors
Individual shareholders
Groupe Bruxelles Lambert
UK institutional investors
Board + Management + Employees + Treasury shares
* For further information, see page 191 of the Reference
Document.
|
2 0 0 8/ 2009
a n n ual
r epor t
| |
pe r nod
r i ca r d
|
73
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Legal affairs: supporting
strategic projects
During the 2008/2009 fiscal year, Legal Affairs took an active part in numerous strategic projects for the Group, such
as the acquisition of the Swedish company Vin&Sprit from the Swedish government (completed in July 2008), disposals
of non-strategic assets, and the capital increase carried out at the end of the financial period. Despite a busy agenda,
these various projects were conducted speedily and successfully, demonstrating the Group’s ability to integrate new
companies, as well as raise the equity needed to ensure its financial health, and always in the best conditions.
New legal department in Sweden
In order to manage the legal affairs of
The Absolut Company and Pernod Ricard
Nordic, Pernod Ricard created a new legal
department, focused on intellectual
property law and made up of four
commissions: corporate law, intellectual
property, distribution, marketing
initiatives and litigation.
Asset disposal:
the example of Wild Turkey
As part of its programme of non-strategic
asset disposals totalling €1 billion,
announced following the acquisition
of Vin&Sprit, Pernod Ricard signed an
agreement in April 2008 for the sale of its
Wild Turkey bourbon and associated assets
to the Campari group. Pernod Ricard was
able to carry out this transaction very
quickly, between November 2008 and May
2009. What were the main steps?
u Drafting of an information memorandum.
u Selection of a shortlist of potential
buyers, authorised to enter the data
room.
u Due diligence by the potential buyers
and their advisors (merchant banks,
audit firms and law firms).
u Negotiations with selected potential
buyers regarding acquisition price
and contractual conditions of sale (e.g.:
price adjustment clause, transaction
conditions, seller’s warranty, etc.).
u 8 April 2009: Announcement of the
signature of the sale agreement for
Wild Turkey.
u 29 May 2009: Sale finalised following
authorisation by regulatory and antitrust authorities.
The transaction was completed for a total
cash price of $581 million (subject to
price adjustment).
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| Acquisition and rapid integration of ABSOLUT
into the Pernod Ricard Distribution Network
The transaction took place in two main phases: first, the acquisition of the Vin&Sprit
company and its ABSOLUT vodka from the Swedish government; and second, the
brand’s integration into the Group’s network.
In order for Pernod Ricard to be able to pay the acquisition price, Legal Affairs, alongside
the Finance department, negotiated the financing conditions of the transaction, with
a pool of lending institutions. This large credit was finalised by signing a syndicated
loan agreement for around €12 billion. Negotiations aimed in particular to ensure that
the commitments made by the Group and certain of its companies to the lending banks
were acceptable. Legal Affairs also ascertained, prior to submitting Pernod Ricard’s
bid, that the transaction could not be delayed or blocked by the North American or
European anti-trust authorities. Above all, Legal Affairs negotiated, together with
General Management and with the support of its advisors (law firms, merchant
banks) and the other relevant departments of the Holding Company, the terms of the
acquisition agreement proposed by the Swedish government.
Once the acquisition of Vin&Sprit was completed in July 2008, Legal Affairs assisted the
various entities of the Group in terminating existing distribution contracts between
Vin&Sprit and third parties, to prepare the way for Pernod Ricard’s Distribution
Network to sell ABSOLUT directly worldwide. In collaboration with the Finance
department in particular, Legal Affairs played a role in completing ABSOLUT’s full
integration into the Network, just a few months after the acquisition was finalised.
Disposal of non-strategic assets
Based on discussions with the anti-trust authorities leading up to the acquisition
of Vin&Sprit, the European Commission required the Group to dispose of certain
non-strategic assets, particularly local brands sold in the Scandinavian countries.
Together with the Audit and Development department, Legal Affairs played a crucial
role in implementing this process, which was subject to a set deadline. Grönstedts
cognac was therefore sold to the Finnish group Altia, while the Norwegian group
Arcus acquired the Star Gin (gin), Red Port (port) and Dry Anis (anise) brands.
In addition to these examples of forced disposals, Pernod Ricard also sold Bisquit
cognac to the South African group Distell, a process in which Legal Affairs was
systematically involved from start to finish, with the support of its advisors. It was
also involved on the same basis in the sale of the American bourbon Wild Turkey.
|
2008/ 2009
annual
re p o r t
|
What progress has been made in the fight against
counterfeiting in China?
Questions with...
Ian FitzSimons,
General Counsel
Career path
◆ Ian FitzSimons
joined the Group in 2002, after
being European Legal Director
at Seagram. He previously
worked for the law firm of
Baker & McKenzie in London,
specialising in European
competition law.
What is different about the way legal issues
are managed at Pernod Ricard?
Pernod Ricard has created an organisation in which Legal Affairs is
strongly involved, even far upstream, in all strategic issues of both
a regular and exceptional nature: external growth transactions,
disposals, all types of financing, aspects of stock exchange law,
competition law, dispute management, trademark protection,
etc. This approach requires us to be able to anticipate the issues
to be handled and react effectively. Legal Affairs demonstrated
its effectiveness in the acquisition process for V&S in 2008,
concerning questions of anti-trust law in Europe and the US, but
also in negotiating the acquisition agreement with the Swedish
government and for the transaction’s financing with multiple
banks. The negotiations carried out in a second phase for legal
integration of ABSOLUT into the Pernod Ricard network, as well as
the termination of existing distribution contracts with third parties
in the United States and the rest of the world made it possible to
shift the brand’s distribution to group subsidiaries far ahead of
schedule.
What needed to be done following the integration
of ABSOLUT into the Group’s portfolio?
Integrating a brand such as ABSOLUT involves significant
intellectual property issues: changing the name of the holder,
monitoring the application of contracts to holders, etc.
In July 2008, we created a new intellectual property unit in
Stockholm dedicated to the management of the V&S brands,
now joined by Malibu and Kahlúa.
Working to combat counterfeiting remains a priority for
Pernod Ricard, which is strengthening its administrative, criminal
and civil actions against infringements in China. We believe
that an intensive, long-term policy, supported by a constant
presence in the field, will serve to dissuade counterfeiters from
infringing on our rights and our products. We also ensure optimal
protection of our rights through multiple registrations, including
transliterations of our brands, and carefully monitor all new
applications by third parties which could create confusion with
our rights, including for products different from our own. Indeed,
awareness of some of our brands, such as Chivas Regal, is such
that it reaches even beyond the spirits sector. Our policy in China,
which we implement in permanent collaboration with external
counsel and with local authorities, is intended to be extended
to all countries, or to any region which could present the same
types of problems.
Given the importance of the internet in brand
communication today, how does the Group protect
and defend its rights in this arena?
The regular development of innovative services on the internet,
including the many new social networking (“Metaverse”) and
video hosting tools, create fresh challenges for intellectual
property holders. Here again, we are very attentive to any violation
of our rights, and act firmly to put an end to any illegal acts.
Numerous websites are operated in relation to our products,
and we protect our domain names within the framework of a
dedicated charter, implemented for the entire Group beginning
in January 2008. This coordinated policy, the responsibility of the
Intellectual Property department, has allowed us to consolidate
a portfolio of consistent names, which we expand as needed.
We believe that internet domain name management is essential
for a Group such as Pernod Ricard, which has made numerous
acquisitions and regularly integrates new brands into its
portfolio.
Proactive initiatives against copies of certain
Pernod Ricard brands have been effective, and
several competing products have modified
their presentation in recent months. We
are continuing on this path for our flagship
brands, in particular Malibu and ABSOLUT. It
is unacceptable for copies that might confuse
the consumer to be allowed access to the
market.
The capital increase
For a total amount of around €1 billion, very largely oversubscribed, this transaction which addressed Group shareholders and the market required
careful preparation under conditions of extreme confidentiality and within a very short time frame. Drafting of two crucial documents was overseen
and coordinated by Legal Affairs, together with the Holding Company Finance department and Group advisors (merchant banks and law firms): A
prospectus approved by the French Financial Markets Authority describing the technical characteristics of the operation and updating the annual
report, and the very technical Guarantee and Investment Agreement between Pernod Ricard and the merchant banks that were to sell the new
shares.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Communication:
a genuine state of mind
The past year was full of important events: Appointment of Pierre Pringuet as Chief Executive Officer of the
Group, the integration of ABSOLUT, the capital increase… During these times of great change, communication
plays an increasingly strategic role. More than that, at Pernod Ricard, communication is a veritable “state of
mind”, as Olivier Cavil, the new Vice President for Communication, explains.
A constantly evolving website
Entreprendre, close to its readers
A regular resource for shareholders and the financial community,
but also for employees, Entreprendre magazine reports on Group
strategy twice a year through articles, interviews and special
in-depth features. With rich and varied topical coverage of
products and markets, and an eye on issues of current interest,
the Group magazine is an informative tool which maintains
a strong identification and a close relationship with its
40,000 readers worldwide.
Created in 1983, the magazine has evolved over time, to become
the high-quality publication it is today that perfectly expresses
the Group’s Premiumisation strategy.
A satisfaction survey was launched during the past financial year,
to ensure optimum response to reader expectations with regard
to both the form and content of the magazine. Result: 96% of
Entreprendre readers say they are very satisfied with the form,
and 81% consider the magazine interesting.
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| The Pernod Ricard website provides a wide range of information
about the Group, its history, its commitments and its key brands.
Annual reports from 1975 to the present are available on line,
and cover the Company’s many changes. Web users can also
peruse issues of Entreprendre, the Pernod Ricard shareholder
and employee magazine. On the Finance side, they can find all
Group news on line, the real time share price, and financial
presentations since 2001.
True to its transparency ethic, Pernod Ricard posts online live
and recorded webcasts of shareholders’ meetings, investor
conferences and analyst meetings, and press conferences
reporting on annual and half-year results.
A dedicated mini-website is reserved exclusively for shareholders
who belong to the Club Premium.
The website evolves constantly. Starting this year, analysts and
investors are able to ask questions during conferences streamed
on line.
The Brands pages will soon be expanded with a new section about
key events in the life of the Brands.
|
2008/ 2009
annual
r e p o r t
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Questions with...
Externally, the goal of reassuring stakeholders about the relevance
of our corporate strategy is the same, with an accent on direct
personal contact: for example, Pernod Ricard increased the
number of personalised meetings with journalists throughout
the past year. The goal is for the company to weather the crisis
and come out stronger.
Is luxury-centred communication still relevant
in the current environment?
Career path
◆ Previously headed by Francisco de la Vega (left),
now CEO of Pernod Ricard Swiss, Group Communication has
passed to Olivier Cavil (right), former Director of Communication
at Mumm Perrier-Jouët.
What was Communication’s role during this year
of change?
A company’s quality of communication is one criterion of good
governance. From this perspective, our communication pursues
a dual objective. The first is to ensure information transparency,
to respond to our shareholders’ expectations about how the
company is managed. This transparency obligation does not feel
restrictive, but rather is seen as an integral part of the Group’s
internal culture. It is the natural adjunct to a decentralised
organisation.
The second objective is to be efficient, that is, to provide highquality, effective, proactive and comprehensive information.
For this purpose, Pernod Ricard implements a full palette of
information tools for its different audiences: shareholders, press,
financial community, etc. These range from the Internet, where it
is possible to react very quickly, to the many Group publications,
the organisation of Shareholders’ Meetings, and Club Premium
events focused largely on a dialogue with shareholders. Cultural,
environmental and humanitarian sponsorship initiatives also
display the Group’s commitment to taking an active role in issues
that concern the world around it. Each of these tools aims in the
end to express the vision and values that define our organisation,
both internally, to our 18,975 employees, and externally.
In a time of economic crisis such as that we are
experiencing today, what role can Communication play?
In this specific context, the need to communicate is even more
important than during normal times, due to the widespread
climate of uncertainty. Internally, the role of Communication
is to ensure that company strategy is not forgotten or neglected.
It is also necessary to explain short-term adjustments, and finally
to mobilise energies around our shared mission.
As our CEO Pierre Pringuet has continued to affirm,
Premiumisation is and remains a durable pillar of Group strategy.
It corresponds to long-term trends in global consumption: People
are drinking less, but drinking better. After crisis periods, it is
noteworthy that sales of Premium products always recover the
fastest. Naturally, our communication is tuned to this Premium
positioning. This year, we have pursued the Premium focus of
our communication tools and initiatives.
How has Communication supported the passing
of the torch from Patrick Ricard to Pierre Pringuet?
This transition was smooth, particularly as Pierre Pringuet
had already been a Group executive for a number of years.
Communication began well in advance of this change. Internally,
a key element in the handing over of the reins was the distribution
to all employees of Patrick Ricard’s publication “Building for the
long-term”, which looks back at 30 years of Group successes, and
revisits its fundamentals. The appointment of Pierre Pringuet was
accompanied by specific external and internal communication.
This approach was fruitful, as Pierre Pringuet is perceived today as
one of the executives most appreciated by journalists, according
to a May 2009 VcomV survey.
More than a management tool, communication
is above all a “state of mind” for Pernod Ricard.
How is this expressed?
It is true that there is a natural tendency to exchange and share
information within the Group. This is certainly at the heart of
one of our cardinal values: Conviviality, which is demonstrated in
particular by the availability and accessibility of our executives,
well-known to the media. This state of mind exists at all levels of
the company and constitutes a real core element of our day-today operation. It is both a corollary to a decentralised structure,
and bears witness to the pride attached by our employees to their
group and their brands.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
The Club Premium, always attentive to shareholders
With its 10,500 members, the Club Premium is a privileged contact point for the
shareholders of Pernod Ricard and answers their questions at the cultural and financial
events organised throughout the year. These occasions are an opportunity to enter into
the heart of the Group’s culture by approaching its players on the ground. In total, over
5,000 members have been able to enjoy Club events since 2006.
The Club endeavoured to answer questions on topical issues by organising conferences
on investment funds or sustainable development, based on work by the Paul Ricard
Oceanographic Institute. Visits to our sites, at Mumm, Perrier-Jouët and Martell this
year, were greatly appreciated once again.
The listening ability and availability of the Club Premium proved to be even more
important this year due to the difficult economic environment. A large number of calls
were made to the Club Premium toll-free telephone number, particularly at the time of
the capital increase in the Spring of 2009. The Club was an essential channel to reassure
Pernod Ricard’s shareholders that they had made the right choices.
Te s t i m o n i a l
Frédéric Croquette,
Pernod Ricard shareholder
As a Pernod Ricard shareholder, how have you
perceived the recent stock market upheavals?
I have been a Pernod Ricard shareholder for nearly fifteen
years, so I am not just a “stock market speculator”! On the
contrary, I take a long-term view. I want profitability, of
course, but also the assurance of lasting growth. The environment has been difficult since 2008, and Pernod Ricard
shares have suffered like all the others. But I take it all philosophically, because if you don’t want to take too many
risks on the stock market, you should only invest money
that you know you won’t need right away. It’s important to
hold steady and not jump to sell, because I am certain that
in the end the shares are going to go up again!
How did you react to the capital increase launched
by Pernod Ricard last April? Did you participate?
This operation is an excellent move, in my view. I subscribed without any qualms for the maximum allowable
amount. The Group will be able to reduce its debt more
quickly than planned, which can only be positive for its
stock market price and therefore for its shareholders.
78
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| How much confidence do you have
in Pernod Ricard stock?
Pernod Ricard is a good portfolio fundamental, a secure
stock that I hold onto no matter what the temporary ups
and downs in the market. Stocks should be looked at for
the long term (at least five years). There is every reason
to have confidence in Pernod Ricard: Its market position,
its proactive strategy of creating a Premium brand portfolio, as illustrated by the recent acquisition of ABSOLUT
vodka – following that of Allied Domecq in 2005, thrust
the Group into the position of global co-leader. And I am
sure that, whatever happens to the economy, people will
continue to drink wine, champagne and whisky!
Do you think you are well informed
about the Group?
Because of my profession – Director of Finance and Administration for an SME in the north of France – I closely follow
the financial press, and compare the views of different observers to form my own opinion. I also read the Group’s documentation carefully (annual report, Entreprendre magazine, Premium newsletter, etc.), I always attend the general
shareholders’ meeting, and I am a keen participant in the
events organised by the Club Premium. This year I had the
pleasure of visiting the Mumm cellars, and more recently
the European Parliament. I especially appreciate these moments when I can see how the company really operates. It
is very instructive, at least as much as the financial ratios
or share price!
|
2008/ 2009
annual
re p o r t
|
Ocean Room
|
S y d ney, A us t ra li a
In one of Sydney’s most prestigious districts, the Ocean Room has reinvented modern bar codes with its immense
tanks filled with aquatic life. Its varied list of wines and liqueurs offers a blend of world cultures.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Reaping
the rewards of diverse talents
Successfully integrating The Absolut Company’s teams
Straight from the source…
Sweden
427
people
Kicki Alm
Human Resources Director,
The Absolut Company
How did you view this
integration from the Human
Resources perspective?
We approached it as a clearly defined
and transparent professional process,
and it took place in a calm and efficient
atmosphere. Dedicated working groups
did an excellent job facilitating adaptation
to the Pernod Ricard culture. The Absolut
Company personnel felt welcome and
integrated right from the start. We were
struck by the humility and simplicity of human relationships. There was, of course, a
great deal of work to be accomplished
for the various functions, but we were very
satisfied with the end result.
How many people were impacted
by this acquisition?
Did they all join Pernod Ricard?
The structure was divided between two
sites: 127 people in Stockholm and 300 in
Åhus (production site). Unfortunately, the
integration required us to part with 25 employees in Stockholm. However, there were
no redundancies on the production side.
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| What made the success
of the integration?
What are some of the positive
things for the V&S teams?
We are committed to being transparent
and accessible to our personnel. All
teams received ongoing updates as the
situation evolved, in order to avoid misunderstandings or circulation of unfounded
rumours. I should also point out the involvement of our employee representatives and unions, who contributed to
establishing constructive dialogue with
management.
The major change is the Group’s organisation. Its decentralised structure leaves
great scope for autonomy, which brings
with it a lot of responsibility. Also, being
part of this big family helps us to get to
know different ways of working with the
new tools we now have available .
What are your goals
for the coming year?
We are glad to see new skills coming
into ABSOLUT with our Pernod Ricard colleagues, and to be working in a company
with global reach which now also owns
Malibu and Kahlúa. We are eager to give
the employees of The Absolut Company
the chance to seize opportunities offered
by the Group’s companies, in particular
international mobility and promotion of
talent within the Group.
In your opinion, after this first year
with the Group, how do former
employees of The Absolut Company
feel about their new environment?
It has been a huge change, to shift
from the previous scope of our operations, which centred round us, to that
of a Group of more than 20,000 people
where we are just one company among
many. But I think our teams are optimistic
about the growth of their company within the Group, which is known for allowing
brands and individuals free expression.
New working methods need to be put in
place, but everyone has a positive and
helpful attitude. Also, the opportunity to
take part in the annual Congress for all
the marketing and sales teams helped
give us a complete sense of the Group’s
values and conviviality in particular.
|
2008/ 2009
ANN U A L
REPOR T
|
Pernod Ricard expands more internationally every year.
How do human resources support this growth?
Questions with...
Bruno Rain,
Managing Director,
Human Resources
Career path
◆ Bruno Rain
joined the Group in 1987 as
an auditor with the Holding
Company. In 1989, he was
a p p o i n t e d Fi n a n c e a n d
Administration Director at
SEGM (now Pernod Ricard
Europe), before becoming
Group Finance Director in
1994. In 1997, he was appointed
Chairmand and CEO of Pernod Ricard Argentina, and three years
later Chairman and CEO of Pernod Ricard Larios, now Pernod
Ricard España. He became Managing Director, Human Resources
in September 2006.
What were the major areas of action for human
resources management this year?
During 2008/2009 the Swedish company Vin&Sprit was integrated into Pernod Ricard. We fulfilled the objective we had set
for ourselves: To accomplish a rapid, efficient and mutually
enriching integration. A dedicated structure was created, The
Absolut Company, responsible for the ABSOLUT brand at global
level (including production), which is now one of the Group’s
Brand Owners. A new Distribution Subsidiary was also created,
Pernod Ricard Nordic, responsible for marketing the Group’s
local and international brands in the Swedish, Danish, Finnish,
Norwegian, Baltic and Icelandic markets.
With the arrival of new employees, Pernod Ricard has gained new
talent in marketing, communication, new technologies, and other
areas. The Group’s willingness to listen supported the process,
which was the object of in-depth communication throughout with
all the structures involved in the various countries of the Nordic
region. Employee representatives were involved immediately
this year in labour relations issues, in particular through direct
participation in the Pernod Ricard European Committee, the
body representing Group employees at European level.
The second major undertaking this year involved strengthening our growth potential in emerging markets. Aside from an
expanded workforce in countries such as China, Russia or India
(growing by 12%, 24% and 8%, respectively, in 2009), we actively
promoted employee development. Employees in these areas accounted for a significant portion of the employees who went on
training courses at the Pernod Ricard Training Centre this year
(32%). In addition, many were identified as “high potential” employees (30% of the total) or “experts” (33%).
Many internal transfers took place during this financial year,
in particular for subsidiaries’ management executives. These
movements demonstrate the Group’s real commitment to
international mobility.
We see an active mobility policy as beneficial from two vantage
points: For the development of truly multicultural profiles
built from varied international career paths, and in bringing
the Pernod Ricard culture to those countries where the Group
arrived only recently.
Our decentralised management model allows us to recruit local
talent and support them in attractive and motivating career paths.
These employees are given the chance to evolve internationally
and expand their expertise.
How does the Group promote employee talent?
Aside from the “Potential Review”, the Group has created specific
monitoring bodies, the “Careers Committees”, to identify talented
employees and manage their careers based on Group needs.
Three times a year, these Committees carry out a detailed review
of positions and managers within each function (Marketing,
Finance, Sales, etc.), with the aim of fostering international
mobility and contributing to adding business value. The active
participation of the vice-president for the function ensures expert
knowledge of the major trends and the resulting skills that must
be developed by employees (use of new communication methods,
knowledge of consumer trends in certain countries, etc.). Piloted
by the Group’s Human Resources department, the Careers
Committees constitute an essential meeting point for offer and
demand at international level. This system has demonstrated its
effectiveness: Since January 2008, 165 international transfers have
taken place within the Group, 56% of which involve managers
who are not on the Management Committees.
What has the Group done to limit the effects
of the economic crisis?
True to our policy, we did not carry out any massive redundancies,
despite the economic downturn. To adapt to the challenging
business environment and limit costs, we paid particular
attention to ongoing streamlining of our structures, all around
the world. The Group integrated the Malibu-Kahlúa International
teams, based in the United States, into the new Brand Owner,
The Absolut Company, headquartered in Stockholm. This linkup allowed pooling of skills and knowledge for identical issues,
such as global brand management, or presence on the North
American market.
We also strictly manage workforce size, as well as fixed and
variable salary levels, and chose not to distribute stock options
or performance shares in June 2009.
This prudent approach should allow the Group to bounce back
rapidly in the post-crisis phase. People and skills are the keys to
the Group’s success, and preserving them is essential.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Changes in headcount
worldwide since 1989
20,000
18,975
18,000
16,000
How would you judge
the past year?
Sweden
14,000
16,260
427
12,000
people
10,000
I think the best is yet to come. We
are just beginning an adventure that
will give us the chance to develop
ABSOLUT with the support of a globally
recognised Distribution Network.
Tatiana Robinson
8,000
Manager, Northern and Southern Europe
Age 35
6,000
4,000
2,715
2,000
0
89
91
93
95
97
99
01
03
05
07
09
Group
Rest of the World
France
In 2008/2009, the number of Pernod Ricard
employees increased, mainly as a result of
the acquisition of Vin&Sprit.
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future opportunity to work with two new
brands, Malibu and Kalhúa, will give me
the chance to diversify my marketing
approach.
How did you experience
the integration of the ABSOLUT
teams into Pernod Ricard?
It was a rich educational experience.
I was very impressed by the efficiency
of the Distribution Subsidiaries, their
professionalism and their ability to put
through the transition with our teams
over a very short period. Just a few
weeks after the integration, campaigns
were being launched in the markets.
What has changed
in your professional life?
It is reassuring to share the same values
and pursue the same goals as our new
Group. I am discovering new working
methods that enrich my professional
life and offer me the chance to respond to new challenges.
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International mobility
Much is happening these days in terms of internal movement within the Group.
This activity is the sign of a strong will to foster international mobility. Career
internationalisation is a core principle of Human Resources policy, and a significant
factor in:
Attracting, developing and gaining the loyalty of talented workers,
Skills transfer and mutual enrichment,
Sharing Group values and best practices.
It is also motivating for employees in terms of their own career advancement and
personal enrichment.
The development of inter-subsidiary mobility is supported by a policy of incentives in
the area of remuneration and mobility support services.
215
transfers or internal movements
in 2008/2009
Breakdown of transfers
or internal movements
by business segment
21
100
Spain
Argentina
For example, I arrived in Buenos Aires in
July 2008, in the middle of the Argentine
winter, having left behind the Madrid
summer heat! This return to Argentina
came after eight years spent with
Pernod Ricard España. Even though
the 2001 economic crisis was difficult
for the country, it also served to remobilise businesses for a return to growth.
Pernod Ricard Argentina has changed
dimensions in this country, in particular
by shifting from the development of
such brands as Minerva or Etchart, to integrating the global brands Ballantine’s,
ABSOLUT, Chivas Regal and Jameson.
The professional challenges have become even more exciting. On a personal level, besides being able to enjoy excellent meat and delicious wines, I have
a wide circle of acquaintances who
have made returning easy and helped
me to develop rewarding relationships.
426
people
Daniel Cushnan
Marketing and Export Director
Age 36
I joined the Group in 1996 with a position at Campbell Distillers in Scotland; in
1997, I was transferred to Pernod Ricard
Argentina and in 2000 I joined Pernod
Ricard España (formerly Larios). Since
1 July 2008, I have been Marketing
Director at Pernod Ricard Argentina. As
an Irish national, I have been able to
get to know a number of the Group’s
markets by following this career path. It
has been a rewarding experience both
professionally, for what it has taught me
about different ways of working and the
wide variety of projects to be conducted, and on a personal level.
94
Production/Industry
Sales force
Head offices and support functions
Breakdown of transfers
or internal movements by region
3%
7%
13%
20%
57%
France
Europe (except France)
Americas
Asia
Pacific
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Employees
Consumers
Environment
Suppliers
& Business Partners
Developing local talent
18,975
Straight from the source...
Employees (on both permanent
and fixed-term contracts)
at 30 June 2009
incl.
6,059
First as Product Manager for the Martell
brand, then for Chivas. I came from a
completely different sector, advertising,
but I quickly took off in my role with
these brands. When the Allied Domecq
acquisition took place in 2006, I was
appointed Group Manager for White
Spirits, Wines and Champagne. In 2007, my
area of responsibility expanded further,
requiring frequent travel throughout the
zone, and offering a chance for great
cultural enrichment.
China
sales persons
589
people
Breakdown of workforce
by region
12%
Brand Manager, White Spirits and Liqueurs
Age 31
Internal career development. I have
had eight fulfilling years at Pernod Ricard
leading up to my current position, Brand
Manager for White Spirits and Liqueurs.
I work in particular for the ABSOLUT
brand, which is an extremely exciting
challenge!
14%
11%
22%
Karol Wu
41%
France
Americas
Asia
Pacific
All along this path, Pernod Ricard has
made it possible for me to progress
quickly and to occupy a wide variety
of positions, allowing me to develop my
multiple talents and my entrepreneurial
spirit.
I had the opportunity to integrate
Seagram in 2001 into the Shanghai-based
teams.
Straight from the source...
Breakdown of payroll
by region
9%
India
576
18%
I felt an immediate connection to the values promoted by the Group, particularly
the ethical approach to work relations,
the possibility to express our ideas and to
innovate, without fear of failure.
people
8%
Prathmesh Mishra
Regional Sales Manager, West Region
Age 40
19%
46%
France
Americas
Asia
Pacific
At Pernod Ricard, employees are respected first and foremost as individuals. The
autonomy we are given is an additional
source of motivation, that encourages us
each day to do our very best to promote
the brands.
Culture and values. Since joining the
Group in 2000 in Mumbai, I have been
called on to occupy various positions
aimed at developing the Pernod Ricard
brand portfolio in the region.
Payroll costs are the biggest in Europe,
a region that represents 55% of our headcount.
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Expanding skills and know-how
Apprenticeships
Almost
Conscious of the importance of employment opportunities for young people, Pernod
Ricard has set the ambitious goal in France of committing to doubling the number of
apprentices on an alternating training system over the next two years. In line with
recent French government initiatives, the Group will promote hiring of young people
for apprenticeship or work experience contracts throughout its organisation.
Training
Training is a valuable tool for staying resilient in a difficult economic environment
and preparing for the return of growth. It is a core element in team motivation and
recognition. Out of almost 12,000 employees who received training worldwide,
478 Group executives participated in 2008/2009 in seminars organised by the
Pernod Ricard Training Centre (CFPR), a full-fledged company campus. These
seminars not only lead to the acquisition of new skills, but also foster exchanges
between employees and stimulate an international multicultural approach.
The training catalogue was expanded again this year. In particular, a specific new
programme is dedicated to the Supply Chain, which highlights its key strategic role
for the different businesses, and presents the latest changes in working methods.
The goal is to create a community for exchanging and sharing best practices between
all Supply Chain professionals around the world.
Another new element is a Human Resources training programme, “HR for HR”,
designed for the HR community, who need to understand the core business in order
to support global strategy and fulfil their specific role. This training covers the roles
and responsibilities of HR at each level of the Group (Holding Company, Regions,
Subsidiaries), and the various HR processes and tools at the Group’s disposal. It also
deals with HR performance measurement, its contribution to Change Management,
the transmission of Group culture and values, as well as the best ways for HR
Directors to be heard and to fulfil their role on the Management Committees.
17 million
euro invested in training
(2.17% of payroll)
307,985
hours of training provided
in 2008/2009
Training expenditure
per staff category
(thousand euro)
2,012
5,979
3,282
5,656
Workers
Office staff
Supervisors
Executives and managers
9.9 years
Average length of service
of Group employees
Integration seminar – Reims – 12 and 13 October 2008
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Promoting social dialogue
Changes in the European Committee
Created in 1999, the European Committee is a privileged venue for direct
information and collaboration between the Group’s General Management and
employee representatives from the European Union subsidiaries. It has 23 members
from twelve European countries.
At the end of a year which witnessed the arrival of the Swedish company (V&S) in the
Group, the Pernod Ricard European Committee devoted its November 2008 meeting
to the topic of integration. Following a 2007 meeting in Martell territory, the 2008
session took place in Paris to allow the new delegates to see the Group’s head office.
These three days of meetings were the opportunity to invite, in addition to the
23 permanent delegates, five observers from the former V&S structures who have
since joined The Absolut Company, Pernod Ricard Nordic and Luksusowa ZG.
A meeting with the Human Resources department was an opportunity to go back over
the negotiations that led to the integration of V&S. Other presentations highlighted
the role of the European Committee and its evolution in line with changes in
European rules.
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Key figures
Recruitment
Workforce
by employment category
Internal movements
External hires
by gender
Production/
Industry
14%
31%
34%
4%
31%
24%
66%
Workers
Office staff
Supervisors
Executives and Managers
96%
Women
Men
Sales force
The proportion of women in the Group represents one-third of Pernod Ricard’s workforce (over
6,400 female employees). In 2008/2009, 39% of external hires were women.
10%
Breakdown of workforce by activity and by gender
5,000
4,000
3,000
90%
2,000
1,000
Head offices and support functions
0
Workers
Office staff
Supervisors
Men
Executives
and Managers
16%
Women
Women represent one third of the employees in the Production/Industry and Sales functions.
The proportion of women is greater at the head offices and in support functions where they
represent nearly half the employees.
84%
Health and safety
Change in the number of workplace accidents
500
400
300
200
100
0
342
398
297
2007
2008
New employees joining the Group’s staff consisted of 1,932 external hires and 215 internal
movements (between subsidiaries), primarily
in the Sales and Production/Industry functions.
2009
398 accidents resulting in sick leave were reported in 2008/2009.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Pernod Ricard creative flair
Wishing to provide its consumers with ever greater satisfaction, and to adapt to a world in perpetual movement, the
Pernod Ricard marketing teams bring increasing imagination to the Group’s brands. Extended ranges, original designs,
limited editions… novel ideas flourished during fiscal year 2008/2009, and met with unmitigated success.
Extending the range
Beefeater 24 u Launched on 30 October 2008 at Syon House,
the residence of the Duke of Northumberland in London, the
Super Premium gin, Beefeater 24 is the result of two years work
by Beefeater Master Distiller Desmond Payne. Beefeater 24 is
made from twelve hand-selected botanicals with a rare blend of
teas at its heart which complements the Beefeater style perfectly,
bringing a fresh aroma and incredible smoothness to the final
product.
Soon after its launch Beefeater 24 was introduced to the brand’s
core markets: the United Kingdom, Spain, United States, Canada,
Russia and Travel Retail. Just ten months after its launch,
Beefeater 24 was awarded the prestigious Gin Trophy at the
2009 International Wine & Spirits Competition, proving that the
distinctive new recipe created by Desmond is a true masterpiece.
Distilled in the very heart of London, Beefeater 24 takes its name
from its unique 24-hour steeping process and the capital’s 24hour lifestyle.
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| ABSOLUT no label u Absolut launched a new limited edition
bottle without any label or logo: “ABSOLUT no label”. This original
design is part of the “In an Absolut World” advertising campaign,
and is meant to suggest that the outside appearance should be
eclipsed by what is inside. The bottle was launched in the Travel
Retail segment and certain other markets in June 2009, with a
global launch following in September 2009.
L’Or de Jean Martell u A blend of several hundred eaux-de-vie,
some of which have aged over a century like hidden treasure deep
in the house’s cellars, L’Or de Jean Martell is the ultimate expression of a quest for perfection lasting three hundred years.
The hand-blown, hand-decorated carafe is the result of the
unique know-how of the master craftsmen at Cristal de Sèvres.
L’Or de Jean Martell was presented to the Asian press in the magnificent setting of the Château de Versailles in October 2008.
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Questions with...
Martin Riley,
Chief Marketing Officer
Career path ◆ After beginning
his career in the Marketing
department at Sandeman,
Martin Riley spent six years
working in turn for Seagram,
Beefeater and Whitbread. In
1990 he became Marketing
Director at Allied Domecq,
until 1997, when he joined
Pernod Ricard as the Irish
Distillers Limited International
Marketing and Sales Director. In 2002 he was named International
Marketing Director at Chivas Brothers, and in February 2009
became Group Vice President for Marketing.
Pernod Ricard added a new Brand Owner this year,
The Absolut Company. Will this change your marketing
approach?
Integrating the teams who made ABSOLUT successful, and whose
marketing talent is known worldwide, is a great opportunity for
Pernod Ricard and its subsidiaries, and a chance to learn new ways
to promote our brands. At the same time, ABSOLUT will benefit
from Pernod Ricard’s expertise in building and utilising brand
platforms.
Bringing in the teams from V&S is also another way for us to
accelerate skill sharing throughout the Group. Our wide-ranging
knowledge, arising in particular from the breadth of our portfolio,
is Pernod Ricard’s strength. To maximise it, the Group supports
sharing and disseminating best practice. In addition to bilateral
exchanges between subsidiaries throughout the year, Pernod
Ricard organises an annual internal competition, the “Premier
Awards”, where companies submit initiatives aimed at promoting
their brands. This year, more than 240 proposals were presented,
of particularly high standard.
What are the Group’s main areas of activity today?
For our brands, we simply strive for… excellence! During times
of economic crisis, consumers are even more appreciative of
products that have a clearly stated origin and are recognised for
their quality, history, heritage, expertise, and taste, all of which
are strengths of the Pernod Ricard portfolio.
Everything we do is directed towards Premiumisation. Our main
challenge is to continually renew our creativity, whether in terms
of new product design or promotional methods. This requirement
guides our relationships with advertising agencies, and defines
the nature of our presence in different media. We are focusing on
a better understanding of new media and of consumer “contact
points”. The goal is to ensure that our brand communication
remains consistent everywhere.
The second area of activity is innovation. 2008 was a particularly
rich year. The majority of our strategic brands introduced
something new, whether in terms of line extensions, product
design such as new flavours or packaging such as limited editions
and personalised products.
Our Research Centre works continuously to allow us to regularly
offer state-of-the-art innovations. This innovative approach
to formulation, together with measurements of consumer
expectations, led to the successful launch of Becherovka Lemond.
In terms of packaging, the use of metallisation technology for
magnum bottles made possible the design of the limited edition
Chivas Regal Christian Lacroix.
“Beyond their taste,
the products we create
all have an emotional
dimension.”
For its part, the Group Marketing division serves as a catalyst
for new initiatives and provides expertise and support to the
subsidiaries, particularly in terms of trend analysis, identifying
consumer expectations and assessing brand communication.
The division also works to rationalise investments with the use of
effective strategic planning tools. This evaluation-based approach
helps target the most promising zones and product types before
launching any new project.
What, in your view, defines the marketing approach to
wine and spirits?
Beyond their taste, the products we create all have an emotional
dimension. Pernod Ricard is fully conscious of this, and designs
brand platforms with precise detail as to the essence and values
associated with each of its strategic brands. These platforms are
the basis of all marketing activity. They define the criteria that
will highlight the specific character of each brand. They also aim
to distinguish the brands from one another, and to define how
they will express themselves. The Group possesses extraordinary
brands, each with its own individual character and personality;
it is important that we use this advantage to the fullest.
Telling the story of our brands in a way that engages our consumers
is another key marketing driver.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Chivas Regal by Christian Lacroix u Chivas Regal has
partnered with Christian Lacroix to produce a new limited
edition Chivas Regal 12 year-old magnum bottle. The Chivas
12 Magnum by Christian Lacroix has been beautifully brought
to life in silver using an innovative laser decoration technique
believed to be a world-first in spirits. The limited editions have
been available worldwide since October 2009 and are limited
to 15,000 pieces.
Ricard: two limited editions for the holidays u
Ricard launched two limited editions for the end-of-year
holiday season in France. The first, titled “Collection Soleil”
(“sun collection”) is luminous, sleek and modern. A sun adorns
the bottle, with the Ricard logo at its centre, evoking the
sun-drenched roots of the famous Marseille aperitif.
The second limited edition bottle is the work of French artist
Thomas Lélu. The dominant colours of blue and yellow
progressively merge, to echo the blend between water and
Ricard.
Ballantine’s Championship Blend u The 2009
Championship Blend, an extremely rare 35 Year Old Scotch
was created for the Ballantine’s Championship which was held
on the Korean island of Jeju in April 2009. It was presented to
the winner of the Championship Thongchai Jaidee and was
co-created by defending Ballantine’s Champion Graeme McDowell
and Ballantine’s fifth Master Blender Sandy Hyslop.
Spheric by Mumm u For the 2008 holiday season, Mumm
launched a unique decorative package for its “red ribbon”
bottle: Five giant Murano glass globes in various motifs and
colours, enveloping each of the bottles in the G.H. Mumm
range. This limited Christmas edition was created by the French
designer François-Xavier Balléry, and was sold at the Grande
Épicerie de Paris in November 2008.
Original creations and limited editions
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Malibu summer bottle u Malibu launched the Malibu
Island Recipes Limited Edition in nineteen countries worldwide
in April 2009. This brightly coloured bottle features the island
elements (palm trees, waves, etc.) together with four Malibu
cocktail recipes that all form an integral part of its design. The
inspiration for the new packaging style was Malibu’s “Get Your
Island On” campaign.
“Eiffel Tower” Suze u Suze launched a special edition to
commemorate its own 120th anniversary coinciding with that of
the Eiffel Tower: A white bottle encased in a metal framework
that evokes Gustave Eiffel’s design. A book recounting the history
of the brand was also released in major French bookstores.
Pernod: four leather cases for Aberlour u For the holiday
season, Aberlour released four cases for its valued bottle, inspired
by the prestige and savoir-faire of luxury leather design. Produced
in suede and leatherette, the cases were presented in shades of
beige and brown.
Product evolutions,
new flavours and new packaging
Malibu in melon flavour u In Summer 2009, Malibu launched
in the USA and Canada Malibu Island Melon, a melon-flavoured
rum. This version rounds out the famous rum’s full range of flavours,
which includes Malibu, Malibu Tropical Banana, Malibu Mango,
Malibu Pineapple and Malibu Passion Fruit. Available in stores in
1.75 litre, 1 litre, 75cl and 50cl sizes, the launch was supported with
an advertising and marketing campaign.
Becherovka Lemond u In September 2008, Jan Becher
launched Becherovka Lemond, derived from Becherovka, the
internationally recognised Czech bitter. Based on the original
Becherovka recipe, this new version is infused with a note
of lemon. Its packaging is particularly modern: The glass is
specially finished for an “iced” effect, and the label is directly
etched into the bottle.
Ways of tasting
“Ricardito” u Ricard introduced a new cocktail for summer
2009 made from Ricard, apple, mint and celery. It was created
by Mauro Calogreco, chef of the Mirazur restaurant in Menton,
Mauro Colagreco, for the summer “Grand Fooding”, a giant
picnic for 1,500 guests organised in several large cities around
France.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Our commitment
to responsible drinking
To demonstrate its commitment and to report on concrete actions in support of responsible drinking, in December 2008 Pernod Ricard published the report “Alcohol: I’m in Control - Pernod Ricard’s best practices around
the world” (available online on the Group’s website), which details the actions undertaken in five priority areas.
Below is an overview of initiatives taken in 2008/2009 by Group subsidiaries.
Recommending
drinking in moderation
Websites devoted to responsible drinking are effective tools for informing consumers.
At European level, the EFRD (European Forum for Responsible Drinking) has
launched the portal “responsibledrinking.eu” to direct visitors towards the existing
national sites in Europe. In 2008/2009, many websites were launched in the member
countries of the European Union, including for example www.verantwortungsvoll.at
in Austria, developed by the Austrian Spirits Association with the participation of
Pernod Ricard Austria. These websites offer the public information about the dangers
of excessive or inappropriate drinking, as well as providing guidelines for less risky
consumption.
In Spain, Pernod Ricard España, along with the other wine and spirits producers in
the FEBE (Federación Española de Bebidas Espirituosas) directly addresses consumers
with a televised advertisement promoting moderation, developed in 2009: “The care
we put into creating our products is wasted if you don’t consume them responsibly; only responsible
drinking rewards our efforts.”
Avoid drinking and driving
In Russia, Pernod Ricard Rouss played a crucial role in the launch of a campaign
against drinking and driving by the ABC association, which unites the major players
in the industry. The subsidiary allowed the association to use a visual developed by
Pernod Ricard China for a campaign which had a very positive impact. This initiative
is evidence of the exchange of good practices between subsidiaries.
In Mexico, The Foundation Casa Pedro Domecq, created in 2006 by Pernod Ricard
subsidiary Casa Pedro Domecq, continues to combat drinking and driving with
the second phase of its “O tomas O manejas” campaign (“You either drink, or drive”).
This campaign was widely broadcast on television, on the radio and in cinemas,
and features Jaime Camil, a Mexican actor and singer who is very popular among
young people, and is an ambassador for the Domecq Foundation. The campaign also
partners with schools and universities to raise awareness among young people to the
risks of drinking and driving.
From top to bottom :
u The EFRD’s “responsibledrinking.eu” portal.
u C ampaign suppor ted by Pernod
Ricard Rouss conducted in Russia.
u ”O tomas O manejas” campaign
by
the Casa Pedro Domecq Foundation.
u Malibu-shuttle, the Malibu shuffle buses
to prevent drinking and driving in Germany.
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launched by the Ramazzotti brand in June 2008. Preventing drunk driving is a core
concern for the subsidiary, which organised a system of shuttle buses for the ten
Malibu brand “Mach Dich Karibisch” (“Be Caribbean”) parties organised in November
and December 2008. More than 1,000 consumers were transported from the party
location to public transport, so that no one would need to drive a car.
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How do you motivate subsidiaries to be proactive
about responsible drinking, in a difficult economic
environment?
Questions with
Jean Rodesch,
Vice-President,
Institutional Affairs
Career path ◆ Jean Rodesch is
a Belgian legal expert. He began
his career with European Union
institutions before working in
the private sector in the food
industries. He joined Pernod
Ricard in 1994 first as Director
of European Affairs and then as
the Group’s Vice-President for
Institutional Affairs. He is based
in Brussels.
How would you summarise the 2008/2009 financial year
with regard to responsible drinking?
To begin with, the year witnessed the concrete implementation
of the commitments we had previously made. We fulfilled
our commitment to the European Alcohol and Health Forum:
The “pregnant women” warning logo now appears on all our
bottles distributed in the European Union, and a responsible
drinking message appears in all our advertising, an initiative
that Pernod Ricard has chosen to apply worldwide. We
presented these excellent results to the members of the Forum
(industry players, non-governmental organisations and public
health authorities) during the Open Forum held in Brussels on
30 April 2009.
This year was also marked by the launch of innovative
campaigns promoting responsible drinking, such as “Recognize
the Moment” by ABSOLUT.
Our subsidiaries have not given in to the temptation to trim
social responsibility budgets. This is a policy that requires
a long-term view. The Group knows this, and oversees its
application. Since 2009, social responsibility has become part
of the evaluation grid for determining managers’ bonuses.
Adding this criterion shows how seriously Pernod Ricard takes
responsible drinking.
We also rely on the work of our network of “corporate social
responsibility” correspondents, who pass on Group decisions
locally and initiate preventative actions together with other
departments (Human Resources, Communication and
Marketing).
What are Pernod Ricard’s current projects in terms of
responsible drinking?
I will quote Patrick Ricard, Chairman of the Board of Directors,
at the latest meeting of Group “corporate social responsibility”
correspondents, held in Stockholm in April 2009: “We need to go
one step further, and concentrate our prevention efforts on two priority
targets: binge drinking and underage drinking.” We have a programme
in place in Spain with the FEBE and also in Sweden (which will
be extended during the 2009/2010 school year to Finland and
Denmark), and we have been working with the association
Entreprise et Prévention since the spring of 2009 on introducing a
similar educational programme in France.
The “corporate social responsibility” correspondents
with Patrick Ricard, Chairman of the Board of Directors.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
In France, the prevention programme “c’est ki ki conduit” (“whoz driving?”) is deployed at
parties where Pernod Ricard brands are present, to promote the idea of the designated
driver. Audits are organised several times a year at promotional evenings by the
association Entreprise et Prévention, to verify correct implementation of the programme
(posters, free distribution of breathalyser tests, etc.). In 2008/2009, 100% of parties
organised by Pernod SA were compliant.
Teaching young people about the risks of alcohol
ABSOLUT Recognize the Moment
ABSOLUT vodka launched a global
campaign to promote responsible drinking
in March 2009. Via the brand’s website
and through interactive communication
media (mobile phones, video interviews,
social networks), the brand seeks to help
consumers to identify the time when they
have to choose and prepare them to make
a responsible decision when they decide
to drink alcohol.
u
In Ireland, the association MEAS (Mature Enjoyment of Alcohol in Society), of which
the Irish Distillers subsidiary is a member, raises awareness among young people
about the dangers of excessive or inappropriate drinking with its “Drinkaware”
programme. Since several years, Drinkaware distributes a free guide at the various
festivals that take place in the country from June to September. This guide offers
festival-goers advice about moderation to prevent a difficult “morning after”, and
highlights, for example, the importance of planning in advance to ride home on
public transport rather than driving a car. In April 2009, Drinkaware also organised
the second edition of the digital film contest “Dare2BDrinkaware”. In short films
about young people and alcohol directed by students, the filmmakers inform their
peers about the dangers associated with alcohol.
Pernod Ricard Europe works to make student parties responsible, and commissioned
the students of the Ecole Hotelière de Lausanne to develop a programme for
organising responsible parties for students as part of their “Student-Business”
project. The “responsible party” programme is directed towards organisers to help
students prepare their events, by informing them of their responsibilities (obeying
the law, particularly with regard to sale of alcohol, but also safety issues) and of
preventative measures that should be put in place. The programme will be used by
Group subsidiaries throughout Europe.
In Italy Pernod Ricard Italia is raising awareness of responsible drinking among young
people with its “DJ Calogo” initiative. Partner DJs wrote the “Ten commandments of
responsible drinking”, and deliver messages about moderation during the parties
where Havana Club is present and at promotional evenings organised by Pernod
Ricard Italia. This initiative earned a Premier Award in the “on trade” category at the
April 2009 Pernod Ricard Congress, which is attended every year by Pernod Ricard
sales and marketing teams. This is yet another sign of how seriously the Group takes
preventing the dangers associated with excessive drinking.
In Sweden since 2006, The Absolut Company has supported the “Prata om
alkohol” programme, which provides teachers with educational materials to alert
their students to the dangers of alcohol. A short story writing competition with
alcohol as the theme is also organised every year as part of this programme. One
thousand short stories have been written by students since 2008, the best of
which were published in an anthology available online (www.prataomalkohol.se).
The advertising contest “Berätta för 100 andra – minst” (“Tell at least 100 people”)
also made students think about the dangers of excessive drinking. 120 advertising
campaigns were designed by young people aged 12 to 18.
In the United Kingdom, one facet of the “Accept Responsibility” campaign by
Pernod Ricard UK is devoted to underage drinking. This campaign denounces the
excuses most often heard to justify excessive or inappropriate drinking. It targets
parents of underage children, reminding them of their responsibilities: “We drank
just as much when we were his age, and we came out of it alright,” or “I don’t care if he drinks with
his friends, as long as they do it at home,” are presented as excuses that are unacceptable.
From top to bottom:
u Lausanne Hotel School “Responsible Party”
Guide.
u “Prata om alkohol” educational programme
in Sweden.
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Protecting pregnant women
The brands that entered the Pernod Ricard portfolio after the acquisition of
Vin&Spirit, and are distributed throughout Europe, are required to adopt the
“pregnant women” warning logo progressively as their stocks are renewed. While this
Group initiative only concerns the European subsidiaries, Pernod Ricard Brazil has
decided to voluntarily use the logo on all bottles distributed in Brazil. In May 2009,
Brazil became the first Latin American country in which this pictogram is in use.
In 2008/2009, multiple campaigns raising awareness of the risks of alcohol during
pregnancy were launched. In Germany, the association BSI, which unites the major
wine and spirits producers, launched the “Responsible from the start” brochure,
distributed to women by their gynaecologist with the support of Pernod Ricard
Deutschland. In Poland, Wyborowa supports the prevention campaign launched by
the professional association PPS as part of their commitment to the European Alcohol
and Health Forum. In Belgium, brochures and posters were sent to the country’s
French-speaking gynaecologists by the Belgian Wine and Spirits Federation (FBVS)
of which Pernod Ricard Belgium is a member. The Belgian prevention tools were
adapted from the French campaign developed by the Entreprise et Prévention association,
and the National college of French gynaecologists and obstetricians (CNGOF).
Employee responsibility
Following a decision made at Group level in 2008, Pernod Ricard subsidiaries worldwide
adopted codes of good conduct for alcohol consumption in 2008/2009. All employees of
the Pernod Ricard Holding company in France were required to sign the Responsible
Drinking charter which is now attached to the company’s internal regulations. In the
United Kingdom, Pernod Ricard UK launched its “Responsible Drinking Guidelines
Manual” in April 2009, with a description of the rules of responsible drinking as well
as the Pernod Ricard UK Marketing code, adapted from those of Pernod Ricard and
the EFRD.
In France, since June 2009, the 13 fixed breathalyser stations installed in the reception
areas at Ricard SA locations are equipped with a communication system to allow
better visibility for the station. In this way, the many visitors (internal or external
– customers, suppliers) received at these locations are given a stronger reminder to
use the breathalyser station before taking the wheel.
From top to bottom:
u Polish prevention campaign on the risks
of alcohol during pregnancy.
u Ricard’s breathalyser station poster.
Inter view
Sabine Bätzing:
Member of the Bundestag, German Minister for Drugs.
“In Germany, 4,000 babies are born each year with foetal alcohol syndrome. These children are
incapable of living independently and require lifelong medical care and treatment. Foetal alcohol
syndrome is twice as common as Down Syndrome. The clinical signs are retarded growth, physical
deformities and mental handicaps. The I.Q. of these children is around 75 (compared with a normal
level of 100). Added to this there are often behavioural issues such as hyperactivity.
The goal of our health policy is to prevent this syndrome through advice before and during pregnancy.
This is not enough, however; we must also provide support and assistance. The warning logo that
Pernod Ricard applies to all its products is an excellent example of how an industry leader like Pernod
Ricard can, with a very simple measure, fully assume its social responsibility. Initial studies show that
this little logo, together with measures to inform the public, effectively dissuade women from drinking
alcohol during their pregnancy. I would like this pictogram to become more visible, that is, to occupy
a larger space on the products. I hope that other companies will have the courage to follow Pernod
Ricard’s example.”
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Control of advertising ethics
In 2005, following the acquisition of Allied Domecq, Pernod Ricard decided to
strengthen oversight of the ethics of all its commercial communication, by creating
its own Internal Approval Panel.
Comprising four members(1), this Panel is completely independent of all Group
marketing entities and reports directly to the Group Executive Committee. Its
decisions are binding for everyone and form real precedents for application of the
internal code of conduct on commercial communication.
Naturally, this oversight comes in addition to that exercised up- or downstream by
local self-monitoring advertising boards (such as the DISCUS Review Board in the
United States, Autocontrol in Spain, Advertising Standard Authority in the U.K., etc.)
or by regional organisations (European Forum for Responsible Drinking) or industry
bodies (the European Wines Committee (CEEV); The Scotch Whisky Association)
which have dictated their own codes of conduct with which Pernod Ricard and its
brands must comply.
Non-compliance with commitments made locally or with existing advertising law
makes the company liable to complaints filed by consumers, competitors or nongovernmental organisations.
We should note that two subsidiaries have also formed internal control Panels
with regard to commercial communications which work closely with the Holding
Company Panel: Pernod Ricard Pacific and The Absolut Company.
(1) Rick Connor, Vice President, International Affairs (Chivas Brothers) u Armand Hennon, Vice President, Public
Affairs France u Tom Lalla, General Counsel, Pernod Ricard USA u Audrey Yayon-Dauvet, Vice President, Intellectual
Property (Pernod Ricard Holding Company).
How does internal control work?
Every proposed advertising campaign, sponsorship activity or website that involves
one of the fifteen strategic brands must be submitted in advance to the Internal
Approval Panel, which formulates an assessment within seven days. In practice,
in addition to the strategic brands, nearly all campaigns are now submitted before
deployment, which explains the growing number of assessments rendered.
The control process is formally laid down and results in a written report at each
meeting of the Group Executive Committee. This report is then transmitted to all
“social responsibility” correspondents, who ensure its distribution within their
subsidiaries.
For each campaign examined, the Panel formulates an assessment which may be
green (approved without reservation), orange (approved subject to modification) or
red (rejected and new campaign submission required).
From top to bottom:
u Approved Martell advert.
u Approved Absolut advert.
Focus
Internal training in respecting ethical commitments
The Pernod Ricard code on commercial communication applies to all the Group’s marketing teams and service providers. This necessitates
ongoing training by the Institutional Affairs department and the internal advertising review Panel.
In addition to a training module on advertising ethics which is part of the seminar on legal issues offered by the Pernod Ricard Training Centre, a
compilation of compliant and non-compliant commercial communication has been created. It is accessible on the Group’s “Responsible Drinking”
intranet.
Patrick Ricard, Chairman of the Board of Directors of Pernod Ricard, himself chaired the training seminar held in Stockholm on 1 April 2009, which
covered the proper application of the Pernod Ricard Code. The Group’s “Corporate Social Responsibility” correspondents met on this occasion and took
part in exercises involving campaign projects submitted to the internal Panel in previous years.
Finally, Pernod Ricard Europe organised a Code training session for its Executive Committee, as well as a working session for its Marketing Directors on
the application of the Pernod Ricard Code and the code of the European Forum for Responsible Drinking (EFRD) to new internet technologies.
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Finally, in addition to these assessments, the Internal Approval Panel is available to
marketing teams and Brand Owners or Distribution Subsidiaries to offer confidential
advice (a “copy advice” procedure about compliance with the Pernod Ricard Code)
during the development of a new campaign. For a major global campaign involving,
for example, the production of an advertising film, it is not uncommon for the Panel
to be consulted about several versions of a script, to provide its observations, to then
be consulted about a mock-up film on which it may also make comments, and finally
on the completed version for which it will be required to draft a formal assessment.
Control in 2008/2009
204 campaigns were examined (covering 387 different executions) during the
past financial year, a 36% increase in requests for an assessment from the Internal
Approval Panel. This increase is mainly due to the acquisition of the ABSOLUT
brand.
u Dunbar advert
rejected by the Internal
Approval Committee.
Internal control
of advertising campaigns
Two campaigns received a “red” assessment, both projects for local brands in
Venezuela, where the subsidiary chose to transmit drafts proposed by the advertising
agency for the prior opinion of the Approval Panel. The first visual for the Dunbar
brand wrongly associated drinking with the practice of sports. The second, for
Blender’s Pride, associated this brand with driving a car.
200
Two projects received an “orange” assessment: The script for an online video for
Malibu in Australia which could be perceived as derogatory towards abstinence, and
a labelling project for a liqueur (Hiram Walker) in the United States.
100
In total, 98% of campaigns submitted for approval received a “green” assessment
(compared with 96% the previous year), which indicates a growing knowledge of
the Code and increasing respect for it within the Group. It should be noted that
in 2008/2009, none of the campaigns approved internally were the subject of any
external complaint or sanction.
The Internal Approval Panel also provided “copy advice” or confidential assessments
on 129 occasions to marketing teams on campaign projects under formulation,
70% more than in the previous year. Following these exchanges with the teams,
27% of the assessments led to modifications of varying degrees of importance,
involving the project itself, scripts, websites or internet advertising, so as to ensure
the fullest respect for the Pernod Ricard Code and local regulations.
200
144
150
50
0
96
50
4 2
3 1
6 0
2005/2006
2006/2007
2007/2008
2 2
2008/2009
Approved without restriction
Approved subject to modification
Rejected and new campaign submission required
Results of four years of internal control
Out of the 20 “orange” or “red” assessments issued since 2005, the code infractions
observed involved the following themes:
• Possible link between drinking and sexual success, representation of nudity or
indecency (7 cases).
• Possible link between drinking and athletic or physical performance (4).
• Possible link between drinking and social success (3).
• Possible link between drinking and driving (3).
• Positive connotation of the degree of alcohol in a beverage (1).
• Non-compliance with the basic principles of the Code (2).
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
A deep-seated
commitment to
environmental responsibility
Pernod Ricard’s deep-seated environmental commitment has been shaped by developing brands with strong local roots
made from the highest quality ingredients. As early as the 1970s, its founder Paul Ricard showed an environmental
awareness far ahead of his time. At the turn of the 21st century, environmental issues took on added importance
in political and economic spheres, as well as in the media and among the public at large. With the planet under threat
from manmade actions, and humanity’s very survival at stake, the environment has become an important part of the
business fabric. Pernod Ricard has carved out an ambitious environmental policy aimed at preserving natural resources
and reducing the footprint of its activities. Under the impetus of the Industrial Operations Division, this policy
is implemented by the Group’s subsidiaries, which are responsible for rolling out local initiatives on the ground.
Industrial scope
113
International reach
industrial sites
Breakdown of world
production by region
(million litres)
105
At 30 June 2009, Pernod Ricard had 113 production sites, spanning 25 countries
across the globe. These sites include 65 bottling units and 33 distilleries, with
the other facilities used for ageing, vinification or blending purposes.
Four sites were sold in 2008/2009 including Lawrenceburg (Kentucky), the Cruzan
plant in the Virgin Islands (United States), Alanis in Spain and Glendronach in
Scotland. The Group’s environmental reporting took in five additional sites, and
all production facilities are now covered. The Group also owns office buildings and
farmland, including almost 8,000 hectares of vineyards, chiefly in Australia, New
Zealand, Spain, Argentina and France. At 30 June 2009, these industrial assets had
a net book value of €1,757 million.
Total output at the Group’s production sites was 1,229 million litres 2008/2009,
an increase compared with the previous year (1,166 million litres) due mainly to
the integration of the V&S businesses.
228
Capital expenditure: accompanying the development
of strategic brands
288
607
During financial year 2008/2009, the Group continued to invest significantly
in its production sites, with capital expenditure totalling €241 million, or 3.4%
of consolidated sales. The biggest investments for the year concerned:
onstruction of new ageing warehouses at Willowyard in Scotland for Chivas
C
Brothers, at Lignières in the Charente area of France for Martell, at Midleton in
Ireland for Irish Distillers, and at Age in the La Rioja region of Spain for Domecq
Bodegas.
◆ Extension of The Glenlivet whisky distillery in Scotland.
◆ Improvement of the energy performance of distilleries: implementation of a
mechanical steam compression unit at Midleton in Ireland, a new system for cooking
grains at Walkerville in Canada, and a new facility for the treatment of gases from
drying by-products at Strathclyde in Scotland.
◆
France
Americas
Asia and Rest of the World
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What concrete steps has this policy led to on the ground?
Questions with...
Jean-Pierre Savina,
Vice-President Industrial
Operations
Career path ◆ After joining
the Group in 1977 as a Research
Engineer, Jean-Pierre Savina was
appointed Head of the Technology
Department at the Pernod Ricard
Research Centre before becoming
Chief Operating Officer for
Pernod Ricard USA in 1999. Since
2003, he has been Group VicePresident, Industrial Operations.
He has had responsibility for the
Pernod Ricard Research Centre
since January 2006.
What major projects have you been working on during
the year and what have been the results?
Our efforts have been chiefly focused on the following four
strategic areas identified in our Environment Action Plan
(associated with specific targets for 2012 described in the following
pages of this chapter):
◆ promoting sustainable farming;
◆ saving water resources;
◆ reducing energy consumption;
◆ reducing the environmental impact of waste and packaging.
The Group has set itself more stringent environmental targets
since putting in place a four-fold certification policy. Pernod
Ricard is now also pushing for compliance with ISO 22000 on
food safety along with the standards on quality, health and
safety and environmental management it already applies. Sites
incorporated by the Group following its recent acquisition of
V&S are also actively working towards this goal.
Finally, it is important to say that Pernod Ricard systematically
analyses the environmental ramifications of every major
investment undertaken within the Group, in a bid to ensure
that the subsidiary concerned will opt to use the cleanest
possible technologies.
Investment
Two examples spring to mind this year.
After running a series of pilot tests to calculate the carbon footprint
of certain products, we have developed a model enabling us to
determine the environmental impact of the Group’s activities as
a whole. This involves calculating the greenhouse gases released
by each subsidiary draw materials ingredients to the logistics and
distribution processes. By doing this, we can take active steps to
reduce the impact across the entire value chain.
A second example is our ecodesign project, part of our drive to
make packaging more environmentally-friendly. This initiative
has identified significant scope for reducing the weight of glass
– by up to 20%-25% in certain cases.
“More stringent
environmental targets as
a result of our four-fold
certification policy.”
What are the Group’s long-term environmental focuses?
Our overriding aim is to meet the targets that have been set for
2012. Beyond this date, a number of new priorities are taking
shape. These include reducing greenhouse gas emissions and the
industrial and financial impacts this will have. Another priority
is water stewardship, essential in a world where freshwater
is becoming rare. As with carbon, our ultimate aim will be to
develop a method for calculating our “water footprint”, enabling
us to reduce the water used in manufacturing our products. The
Pernod Ricard Research Centre will be able to support our efforts
in this area by proposing innovative solutions for the Group’s
subsidiaries.
in new ageing warehouses for Martell
The building of ageing warehouses is one of the Group’s main investment priorities.
In Cognac, four warehouses with a total capacity of 15 million litres of eau-de-vie were
built in 2008/2009, for a total investment of €19 million. After conducting an environmental impact study and a public enquiry, construction work was carried out to
ensure that the new buildings fit in perfectly with the surrounding woodlands and
vineyards. This investment will make it possible to meet strong demand for cognac
from growing markets like Asia.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Industrial scope
A total of 113
Pernod Ricard sites
were in operation
at 30 June 2009
Glenlivet, Scotland
Canada
Walkerville Spirits, liqueurs
Corby Spirits, liqueurs
USA
Fort Smith Spirits, liqueurs
Napa Sparkling wines
cuba
Reims, France
San José Rum
mexico
Los Reyes Brandy, coolers, liqueurs
Arandas Tequila
Ensenada Wines
Hermosillo Brandy
Nöbbelöv, Sweden
Brazil
Suape Spirits
Resende Spirits
Livramento Wines
argentina
Bella Vista Spirits
Cafayate Wines
San Juan Wines
Mendoza Wines
San Rafael Wines
Arandas, Mexico
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sweden
finland
Åhus Vodka
Nöbbelöv Vodka
Turku Spirits
Denmark
Aalborg Spirits
Svendborg Wines, Spirits
England
Kennington Gin
Plymouth Gin
Germany
Buxtehude Spirits
Ireland
Poland
Fox & Geese Whiskey
Midleton Whiskey
Poznan Vodka
Zeliona Gora Vodka
Scotland
Czech Republic
Dalmuir Whisky
Newbridge Whisky
Paisley Whisky
Strathclyde Whisky
Kilmalid Whisky
Keith Bond Whisky
Glenlivet Whisky
17 other sites Whisky
Karlovy Vary Bitters
Bohatice Bitters
Greece
Mithylène Ouzo
Pireus Miscellaneous
Spain
Italy
Manzanares Rum, liqueurs
Ambrosio Wines, liqueurs
Ruavieja Spirits
Age Wines
Arienzo Wines
Logroño Wines
10 other sites Wines
Canelli Sparkling wines, bitters
Portugal
Bombarral Whisky, Spirits
Armenia
Yerevan Brandy
Armavir Brandy
Aygavan Brandy
Berd Brandy
Georgia
Telavi Wines
Korea
Echon Whisky
france
Cognac Cognac
Rouillac Cognac
Chanteloup Cognac
Gallienne Cognac
Bessan Anise products
Lormont Anise products
Vendeville Anise products
Cubzac Sparkling wines
Thuir Wine-based aperitifs
Marseille Anise products
Reims Champagne
Épernay Champagne
India
Daurala Whisky
Nashik Wines, Spirits
Rocky Punjab Wines
Behror Spirits
Kolhapur Spirits
Australia
New Zealand
Rowland Flat Wines
Richmond Grove Wines
Wickham Hill Wines
Russet Ridge Wines
Morris Wines Wines
Wyndham Estate Wines
Brancott Wines
Corbans Wines
Tamaki Wines
Church Road Wines
Gisborne Wines
N.B.: A few minor sites are not shown on the map.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Resolutely engaged
in environmental protection
Outline representation of the main environmental impacts
Waste water,
Waste
Biodiversity,
Co2 emissions
Waste water,
Solid waste, Co2 emissions
Co2 emissions
Packaging,
Waste
Logistics
Consumption
Pernod Ricard – a participant
of the Global Compact
Since 2003, Pernod Ricard has been part
of the United Nations Global Compact and
is therefore committed to respecting and
promoting the ten core principles of this
initiative, with regard to human rights,
labour, the environment and anti-corruption.
Pernod Ricard aims to implement every year
one or more important initiatives which
illustrate most of the 10 principles of the
Global Compact. These Best Practices are
showcased in a report submitted each year
to the Global Compact for accreditation. You
can consult it on the Global Compact site:
http://www.unglobalcompact.org/
Renewal of the FTSE4Good recognition
The FTSE4Good index series makes it
easier for investors to identify companies
which work in accordance with world
recognised standards with regard to
social responsibility. The Group met these
standards as it has every year since 2005,
and thus renewed its membership of the
FTSE4Good index.
92
sites certified to ISO 14001
at 30 June 2009 (out of a total of 113)
Certification to ISO 14001
since 2006
100
86
80
74
63
60
93
81
20
0
2006
2007
2008
% Certified sites
% Certified volumes
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Transformation
Packaging
Production of raw materials
and packaging
Irrigation
Packing
Industrial production
Transformation,
Transport
Vinification, Distillation,
Bottling
Transport
Pernod Ricard’s activities are closely linked with the environment. Their interaction
can be broken down as:
◆ the Group’s impacts on the environment (see chart): use of natural resources such
as water and energy, waste and waste water discharges, greenhouse gas emissions,
and risks of accidental pollution, etc.
◆ the risks that the environment may represent for the Group’s activities: natural
disasters, impact of climatic conditions on the availability and price of farm raw
materials, availability of water resources.
Mindful of this relationship with its surroundings, the Group applies a responsible
environmental policy in each country that is home to one of its production facilities.
The main pillars of the policy are:
Promoting the responsibility of subsidiaries: each subsidiary is fully responsible
for determining how to reduce its own environmental footprint and how to apply the
Group’s policy locally. Pernod Ricard’s Technical Division oversees and coordinates
measures at Group level, notably by performing regular audits and spreading best
practices.
◆ The four-fold certification policy : in addition to the HACCP methodology
extensively applied across the Group, in 2009 it decided to add the ISO 22000
standard on food safety to the three standards already applied, namely ISO 9001
(Quality), ISO 14001 (Environmental Management) and OHSAS 18001 (Health and
Safety). As of 30 June 2009, 93% of the volumes produced by the Group came from
ISO 14001 certified sites (see table).
◆
Standard
ISO 9001
ISO 14001
OHSAS 18001
ISO 22000
Area
Quality
Environmental
Management
Health & Safety
Food Safety
Number of sites (%)
88
81
70
13
Volume produced (%)
97
93
78
10
◆ The Group’s Environment Action Plan: it is focused on four fundamental points
and aims to achieve specific targets.
70
59
44
40
Farm
raw
materials
ri car d
2009
Area
2012 targets
Promote sustainable farming
Local initiatives depending on environment
Save water resources
-10% (m3 per litre of finished product)
Reduce energy consumption
-10% (kWh per litre of pure alcohol)
Minimise the impact of waste and effluents
85% recycled waste
The sections that follow in this report provide further details on the measures
taken and the results obtained in these four areas. A summary table showing
environmental indicators is also set out on page 109.
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Rosa
Mexicano
|
Ne w Yo r k , Uni t ed St a t es
Rosa Mexicano offers its cosmopolitan clients authentic tastes and fragrances brimming with Latin American
culture. Its vibrant decor run through with bold, warm colours creates a friendly, festive atmosphere.
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Promoting sustainable farming
Pernod Ricard is a major agricultural partner, as all the Group’s products are
manufactured with farm raw materials. As such, it promotes sustainable farming,
using natural resources responsibly, respecting the environment, and is concerned
about preserving water and soil quality, biodiversity and human health.
In 2008/2009, direct purchases of agricultural products represented 878,000 tonnes,
mostly in the form of grain for distillation (505,000 tonnes) and grapes
(360,000 tonnes).
Including transformed products (alcohol, wines, sugar, aromatic plants and
herbs, etc.), the Group buys about 2.5 million tonnes of agricultural products, the
equivalent of around 160,000 hectares of farmland.
Direct purchases
of farm raw materials
Practices designed to meet strict standards
(in thousands of tonnes)
14
146
130
360
192
38
Pernod Ricard is committed to promoting sustainable farming, both in its own
agricultural activities and the products it buys.
As such, the Group follows stringent local standards:
◆ In New Zealand, all the vineyards run by Montana are “Sustainable Wine
Growing New Zealand” certified.
◆ In Australia, Orlando Wines has undertaken to provide its major suppliers with
training on the “Freshcare Environmental” standards and have them certified.
◆ In France, the Martell and Mumm Perrier-Jouët vineyards are operated in
compliance with the Guidelines on Best Practices (Guides de Bonnes Pratiques)
drawn up by cognac and champagne associations.
◆ In Sweden, The Absolut Company is supplied exclusively with wheat produced
locally, in line with stringent sustainable agriculture standards.
Significant progress has been made as a result of its initiatives:
Reduction of elements used in the production of farm raw materials:
The use of pheromone-based traps, the introduction of raptors, foliar feeding,
controlled grassing or localised weed control have all helped cut back on the
quantities of pesticides, herbicides and fertilisers used, as well as create a more
favourable environment for fauna. For example, the use of a predictive model for
mildew at Mumm Napa farms in California has greatly reduced the need for sulphur.
In New Zealand, 25 hectares of Montana vineyards are to be farmed organically.
Barley and malt
Corn
Wheat
Other grain crops
Grapes
Other
Water efficiency through optimal irrigation techniques
The use of highly-effective drip irrigation supported by leading-edge farming
techniques have helped reduce water consumption in California, Australia, New
Zealand and Argentina.
Protection of biodiversity
A host of initiatives have been launched by Group subsidiaries looking to protect
or restore biodiversity. On New Zealand’s South Island, a plan has been rolled out
to restore wetlands in the Kaituna valley. Montana has committed to enhancing
biodiversity in all of its vineyards, chiefly through the reintroduction of native
flora and fauna. In Australia, Jacob’s Creek has set up an ambitious biodiversity
conservation programme (see inset below).
Jacob’s Creek: a biodiversity conservation drive
Chris Madigan,Project Officer, Adelaide & Mt Lofty Ranges Natural Resources Management Board
“The work over the last 12 years in Jacob’s Creek to restore indigenous plant species has been so important
in retaining and improving the remaining native biodiversity in the fragile Jacobs Creek River system.
In the future it is planned that Orlando Wines Menge’s Island and Centenary Hill properties, that sit
within the Jacob’s Creek catchment, will be removed from agricultural production and rehabilitated.
The projects are a once in a generation opportunity to return a large amount of land to native vegetation
in a region that has less than 13% of its pre–European native vegetation remaining.”
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Saving
water resources
Effective action on many fronts
A fragile element, specific targets
Water is an essential component in the products manufactured
by Pernod Ricard. It is used at every stage in the lifecycle of the
Group’s products: irrigation of crops, cleaning of equipment,
manufacture of grain-based eaux-de-vie, cooling of distillery
facilities and adjustment of the degree of alcohol in whiskies,
vodkas, brandies and rums.
The pressure on this natural resource, unevenly distributed
throughout the world and often under threat by human
pollution, heightens every year. Pernod Ricard has therefore
marked water management as one of its four strategic focuses
in its environmental policy: the Group is targeting a 10%
reduction in its water consumption per unit produced by 2012.
To achieve this aim, each subsidiary must:
◆ measure its consumption;
◆ check that the water it uses does not endanger resources;
◆ take measures to save water;
◆ ensure efficient treatment of waste water prior to release
into the environment.
These measures become even more necessary if the subsidiary
is located in a geographical region where water is scarce. This
is the case, for instance, in Australia and in Mexico.
Careful monitoring of consumption
Total water consumption of Pernod Ricard’s production sites
amounted to 8.5 million m3 in 2008/2009 versus 6.7 million m3 in
2007/2008. This primarily concerns distilleries, which represent
74% of total consumption. This increase is due to the integration
of the V&S businesses and the enhanced understanding of the
volumes of water actually used. Broken down per litre of distilled
alcohol, consumption stands at 40.1 litres as against 38.4 litres
in 2007/2008. The volume of waste water released into the
environment remained stable, at 29 litres per litre of distilled
alcohol.
A large number of Group subsidiaries launched water
stewardship projects in 2008/2009. Some of their initiatives
are described below.
In Rowland Flat, Australia, water consumption has been
substancially reduced by 13 million litres in two years thanks
to a new wine blending system. A further 90 million litres
have been saved by treating and then reusing all waste water
in drip irrigation for vineyards.
In New Zealand, Montana is targeting a 25% reduction in the
amount of water used by both its vineyards and its production
facilities by 2010.
In Mexico, treating waste water discharged by production
processes has led to annual savings of 8 million litres at Los
Reyes and 2.5 million litres at Ensenada.
In India, the Behror distillery aims to increase the percentage
of recycled water used during production by 28% by 2010,
resulting in savings of 75 million litres per year.
In Armenia, the full-scale renovation of the piping network
at the Yerevan plant has led to a 30% reduction in water
consumption per bottle produced.
At Pernod in France, an action plan has helped slash water use
by 24% at all production sites. The action plan was inspired by
Guidelines on Best Practices distributed to all of the industrial
and administrative sites, and was supported by the active
commitment of all employees.
Certain plants are located close to particularly rich biotopes.
These include the Chanteloup ageing cellars in Cognac and the
Glenallachie distillery in Scotland, which has been equipped
with an innovative membrane waste water treatment system
installed by Chivas Brothers to protect the quality of the
nearby Spey River.
Focus
also means protecting marine
environments, populations and habitats.
Preserving water resources,
Headed by Patricia Ricard, the Paul Ricard Oceanographic Institute on Les
Embiez island has been studying and protecting marine ecosystems for
more than 40 years. The Institute also strives to raise public awareness of
environmental issues, in tune with the pioneering vision of its founder, whose
strong environmental convictions have permeated the Group’s corporate
culture.
On 13 June 2009 an experimental hatchery was inaugurated to develop various
marine organisms, including sea urchins, sea horses, and the Mediterranean
mother-of-pearl. Thanks to a scientific partnership agreement, the Institute
also lends its assistance to WWF France in its study of Mediterranean fin whales
and the impact of human waste on the organism of these mammals. These are
just a few of the many initiatives undertaken to safeguard our blue planet for
future generations.
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| Patricia Ricard, President of the Paul Ricard Oceanographic Institute,
and Jean-Louis Borloo, French Minister of Ecology, Energy, Sustainable
Development and the Sea (right), at the inauguration day for the
experimental hatchery in the Oceanographic Institute in June 2009.
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Reducing energy consumption
2009 energy mix
Over 2008/2009, the total energy consumption of the Group’s production sites
came out at 1,668,747 MWh, with distilleries alone accounting for 81% of total
consumption.
3%
4%
16%
Most of this consumption involves natural gas (see chart), the preferred fuel for
distilling due to its flexibility, energy output and low pollution compared with
coal or fuel.
15%
In 2008/2009, the Group’s total energy consumption per litre of pure distilled
alcohol stood at 7.84 kWh/l, versus 8.87 kWh/l in 2007/2008, in part stemming from
the integration of the ABSOLUT vodka production facilities. These facilities actually
consume little energy thanks to highly optimised processes. Other Group distilleries
turned in an energy performance comparable to 2007/2008, with notable progress
made by Chivas Brothers (down 2%) and Irish Distillers (down 4%) (see chart).
62%
Electricity
Gas (natural gas, biogas and other gases)
Fuel
Coal
Indirect energy
Energy consumption
of distilleries
(kWh per litre of pure alcohol)
10
9
8
7
6
5
4
3
2
1
0
7.52
7.42
6.36
In 2008, the Group set a target to reduce its water consumption per unit produced
by 10% between now and 2012, and has taken the following measures to reach it:
In-depth energy site assessments
In Fort Smith, United States, this assessment was used to identify potential savings
representing 2,500 MWh, of which 850 MWh are immediately effective.
In Midleton, Ireland, short-term gains were made thanks to the optimisation of
the production process and energy management.
In Rowland Flat, Australia, the energy consumption of workshops is closely
monitored in real time via a website.
These energy assessments have been used to secure short-term gains and devise
plans to make improvements in the years to come. They will be extended to other
Group sites in 2009/2010.
Implementing Energy Management Systems
In Sweden, a certified Energy Management System has been implemented at the
Nöbbelov distillery, which guarantees optimised energy consumption (see inset
opposite).
A monitoring system using detailed indicators was put in place in 2008/2009 in the
Group’s ten main distilleries. It tracks and compares performance and identifies
the best practices in order to put them into general use.
Implementing projects to reduce energy consumption
2007/2008
2008/2009*
2008/2009**
* excl. V&S / ** with V&S
Each site sets its own targets and provides the resources necessary to meet them:
In Ireland, the Midleton distillery invested €4 million in a mechanical steam
compression system, for annual savings of nearly 37,000 MWh.
In Scotland, a heat recovery system was installed at the Allt a’ Bhainne distillery,
reducing its energy consumption by 10%.
In Italy, the Ramazzotti bottling facility was refurbished (optimised insulation
and lighting), resulting in a 25% reduction in energy consumption.
Best Practice:
ABSOLUT accreditation
Kerstin Karlstöm, Manager of the Nöbbelöv distillery (Sweden)
“For years, ABSOLUT has been researching and employing the most effective techniques
for reducing the carbon footprint of its activities. Our aim has been to make our distillery
one of the most energy-efficient in the world. The accreditation of our Energy Management
System is the result of a truly company-wide project rallying all staff to its cause and producing remarkable results.”
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Reducing the impact
of waste and packaging
Revico
Martell’s environmental awareness dates back to the 1970s and its creation of
Revico. Specialising in the treatment of
distilling slops, Revico enables distilleries in the Cognac region to reuse their
organic wastes through a biological
process producing methane, a gas that
can replace fossil fuels.
In 2009, Revico entered into a partnership with EDF Energies Nouvelles
which will produce almost three million kWh of wholly renewable, clean
electricity from distilling slops, enough
to meet the energy requirements of
800 homes.
Three types of waste are generated in the lifecycle of our products:
◆ environmentally hazardous waste;
◆ organic waste from the conversion of farm raw materials;
◆ solid waste from packaging: glass, paper, cardboard and plastic.
Limiting and controlling hazardous waste
A total of 515 tonnes of hazardous waste, including 30 tonnes of asbestos waste,
was sent to special treatment facilities in 2008/2009.
Preventing organic waste
The transformation of our raw materials produces by-products used in animal
feed (brewer’s grains, syrup concentrates, spent and dried grains, etc.) or in
farming (grape marc compost and bagasse). As regards liquid effluents, the
methanisation process is used to produce biogas, an entirely renewable source of
energy. This process is used at the sites in Walkerville, Canada, in Behror, India,
in Thuir, France, and at the Revico site in Cognac (see inset). As a result, only 0.7%
of the organic waste ends up in landfills or incinerators.
Recycling packaging and promoting ecodesign
In 2008/2009, 78% of the packaging waste from Pernod Ricard’s production sites
was recycled. The Group has set itself the target of achieving 85% by 2012.
In China, Pernod Ricard supports glass recycling by financing the collection of
its whisky and cognac bottles. As such, ten million bottles were recycled by local
glass manufacturers in 2009.
In 2008/2009, the rollout of the ecodesign programme continued with the
training of Marketing and Purchasing teams in France, Mexico and Brazil.
Plans for a number of new, more environmentally-friendly products have been
developed (see examples in the “Suppliers and Business partners” sections
on pages 110 and 111). In France, Pernod Ricard cemented this commitment by
signing an agreement with the Ministry of Ecology, Sustainable Development and
Land Planning, whereby the Group is set to reduce the quantity of glass sold by
3,000 tonnes in five years.
Solid waste
(g per litre)
35
30
25
20
15
10
5
0
8.60
6.35
5.88
25.69
20.88
21.26
2006/2007
2007/2008
2008/2009
Incinerated waste
Recycled waste
99.3%
of our organic byproducts
are recycled.
Jérôme Fessard,
Chairman of Saint-Gobain Packaging
“We have set ourselves a long-term commitment to scale back the environmental impact of Saint-Gobain Packaging’s activities overall, with an ultimate target of zero emissions. Our performance in glass recycling is excellent. All glass collected
is recycled and we work day-in-day-out with local authorities to encourage the collection of household glass. In 2009,
we joined forces with Pernod Ricard to develop an ecodesign policy that would ensure optimum use of our products and
brands as well as a lighter environmental footprint throughout the supply chain, right through to the end consumer and
glass recycling. For example, Mumm was involved in developing an eco-friendly champagne bottle, and for its flavoured
Café de Paris range Pernod has adopted our Saticoat® frosted finish with strong green credentials.”
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Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
Measuring and reducing
the carbon footprint of the activities
Carbon footprint:
Pernod site in Marseille
(% of CO2 emissions)
In 2008/2009, direct emissions from Pernod Ricard’s production sites totalled
299,810 T of CO2. Glass purchases account for approximately 586,000 T of CO2,
and paper/cardboard purchases approximately 123,000 T (2007/2008 estimates).
4.5%
2.5%
8%
48%
Pernod Ricard will continue to measure its footprint in order to limit its
environmental impact. The Group also intends to work on reducing it by improving
energy efficiency, optimising packaging and logistics and promoting sustainable
farming.
In an effort to better understand its impact on the environment, Pernod Ricard
is gradually extending greenhouse gas emission assessments to all geographical
regions and businesses, helping raise the awareness of employees and management.
In 2009, a model was developed that can be used in all of the Group’s production
sites throughout the world to assess its carbon footprint. It will be tested in six
countries then proposed to the entire Group.
37%
Raw materials
Packaging
Transport
Processing and bottling
Sales activities
The research carried out in 2008 on the two main products that represent the
Group’s businesses (Scotch whiskies and Australian wines) helped identify and list
the impact of these products in terms of greenhouse gas emissions. It highlighted
the major role of packaging (primarily glass bottles) and to a lesser extent the
distilling process (spirits), transport, and farming.
Greenhouse gas emissions
due to IT for Chivas Brothers:
1,100 t of CO2 per year
In 2008/2009, additional studies on measuring the carbon footprint were run
by Pernod Ricard New Zealand, Ricard and Pernod (see chart).
They confirmed that the direct impact of Group businesses is relatively low
compared with the indirect impact linked to the purchase of products and
services.
(tonnes of CO2)
Specific project led
by the Information Systems Division
500
400
In parallel, the Group’s Information Systems Division launched a project aimed at
reducing the CO2 emissions directly caused by the Group’s information systems.
Emphasis is placed on IT solutions that allow Pernod Ricard to lighten its overall
carbon footprint.
300
169
200
100
39
14
0
IT hardware manufacturing
500
To gauge the progress made, a method was devised with the help of Chivas Brothers to
calculate the carbon footprint of information systems. This method is now available
for use by all of the Group’s subsidiaries.
431
400
As a first milestone, the project identified and communicated on initiatives developed
by subsidiaries. A “Green IT” guide was also drafted, outlining the best practices
espoused by the Group. These include increased use of standby mode, reduction of
energy use by data centres, and the development of video and web conferencing.
314
The initiatives launched by Pernod Ricard in its bid to scale back overall greenhouse
gas emissions are described in further detail in the chapters of this report focusing
on Energy (page 106), Packaging, Purchasing and the Supply Chain (page 110)
300
200
111
100
29
0
Utilisation
Computers
Data Centres
Others
Business Travel
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2008/2009 environmental
reporting assessment
Only industrial sites are taken into account (farmlands, head
offices and logistics sites are not included).
For the first time in 2008/2009, reporting includes the nine
sites resulting from the acquisition of V&S. This change in
scope is the reason for certain significant changes in indicators, in particular due to the increase in volumes distilled.
Methodology
Pernod Ricard’s environmental reporting is based on the
financial year (July to June) and concerns all of its industrial
production sites around the world: 113 sites included at 30 June
2009, in addition to the Lawrenceburg facility in the United
States, which was sold in May 2009 and excluding the San José
plant in Cuba. It focuses on the use of natural resources (water,
energy, etc.), waste production (liquids, solids, gases) and
initiatives concerning environmental control and preservation.
Thematic
Volume
Produced
Water
Energy
CO2
Emissions
Mesure
Unit
Definition
Total
production
a) distilled alcohol
b) finished product
Total water intake
kL
The chosen indicators make it possible to monitor the Group’s
environmental performance on the basis of indicators that are
relevant to its industrial activity. They are drawn up using the
GRI (Global Reporting Initiative, version G3) guidelines and
principles while remaining adapted to the Group’s specific
activity where necessary.
Total Pernod Ricard
Mesure
Unit
2009
2008
2007
2006
212,746
174,729
220,662
195,952
1,228,829
1,166,177
1,185,449
1,145,225
-
m3
8,540,794
6,710,552
7,605,066
7,182,064
m3/kL
Total energy consumption
MWh
1,668,747
1,550,242
2,049,267
2,029,538
MWh/kL
Among which: Electricity
MWh
272,880
218,929
246,290
237,968
MWh/kL
Direct CO2 emissions (scope 1)
CO2 teq
299,810
300,013
463,310
455,222
CO2 teq/kL
a) Ratio for 1 000L of distilled alcohol
b) Ratio for 1 000L of finished product
-
2009
2008
2007
-
-
-
2006
-
-
-
-
-
-
a)
40.15
38.41
34.46
36.65
b)
6.95
5.75
6.42
6.27
a)
7.84
8.87
9.29
10.36
b)
1.36
1.33
1.73
1.77
b)
0.22
0.19
0.21
0.21
a)
1.41
1.72
2.10
2.32
b)
0.24
0.26
0.39
0.40
Quantity of fluorinated gas in place
kg
20,499
20,249
20,480
14,394
-
-
-
-
-
-
Part of HFC in place among all
fluorinated gases
%
27.2
23.7
19.9
23.6
-
-
-
-
-
-
Quantity of fluorinated gas released
into the atmosphere
kg
2,940
2,297
2,330
NA
-
-
-
-
-
-
Part of fluorinated gas released into
the atmosphere
%
14.34
11.34
11.38
NA
-
-
-
-
-
-
Waste water
Volume of waste water discharged
m3
6,153,681
5,063,494
5,831,760
5,460,197
m3/kL
Organic waste
Quantity of organic waste landfilled
or incinerated
T
7,106
11,631
18,359
66,015
kg/kL
Cooling gases
Solid waste
Hazardous
waste
Abestos
a)
28.93
28.98
26.43
27.86
b)
5.01
4.34
4.92
4.77
a)
33.40
66.57
83.20
336.89
b)
5.78
9.97
15.49
57.64
EN 8
EN 3
EN 4
EN 16
EN 19
EN 21
EN 22
Quantity of total solid waste
T
32,879
32,202
40,652
36,198
kg/kL
b)
26.76
27.61
34.29
31.61
Quantity of solid waste landfilled
or incinerated
T
7,228
7,400
10,197
8,646
kg/kL
b)
5.88
6.35
8.60
7.55
Part of recycled solid waste
%
78
77
75
76
-
-
-
-
-
-
Quantity of hazardous waste treated
externally
T
515
349.8
432.2
363.5
kg/kL
b)
0.42
0.30
0.36
0.32
EN 24
EN 24
Quantity of waste containing abestos
T
30
265.0
205.0
336.0
-
-
-
-
-
-
Number of certified sites
%
81
70
59
44
-
-
-
-
-
-
Part of certified sites in total
production
%
93
86
74
63
-
-
-
-
-
-
Investments
Amount of investments
for environment protection
€M
5.85
5.60
9.25
13.04
-
-
-
-
-
-
Conformity
Environment-related fines
or sanctions
Fines or
Sanctions
number
4*
0
0
0
-
-
-
-
-
-
ISO 14001
certification
G3
GRI
Index
EN 22
-
EN 28
* Total amount close to €16,000 due to administrative delays in waste water discharge declarations in the United-States and olfactive pollutions (compost and wetlands) in Mexico.
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109
Shareholders
Employees
Consumers
Environment
Suppliers
& Business Partners
The important role
of Supply Chain and Purchasing
Pernod Ricard seeks to optimise the lifecycle in order to design and produce products best suited to the market and
deliver them as efficiently as possible, whilst reducing its environmental footprint (see interview opposite).
Manufacturing
Design
End consumer
Waste
Components
and
Products
Information
and planning
Transport
Production
(Pernod RIcard)
Ricard
Pernod Ricard Brasil
Ricard is currently setting up a variety of tools and resources designed
to improve the environmental impact of its products throughout their
lifecycle.
As part of this drive, several new indicators have been introduced:
◆
◆
Marketing of finished
product
f or the design of new packaging and promotional articles, an indicator
which monitors, for each project, the quantity of waste generated by Ricard,
the customer and the end consumer;
f or Purchasing, an indicator known as “Nearer the Customer”, which
enables packaging supplies to be optimised in line with actual needs.
The Montilla rum bottle has been redesigned, and the
supplier has moved to the “Narrow Neck Press and Blow”
(NNPB) process. Both factors have allowed the bottle to be
lightweighted by 18%, saving 2,330 tonnes of glass and USD
1.5 million (€1.1 million) per year.
Pernod Ricard España
Two ingredients used by Pernod Ricard España to produce one of its
liqueurs are now stored in 1,000-litre reusable containers as opposed
to the 25kg disposable containers used previously.
Examples
of multimodal transport by rail/river:
◆
◆
◆
Irish Distillers
The design of the Jameson 1.75-litre magnum has been altered to improve
its appearance. The bottle now weighs in over 30% lighter, thereby
reducing its transported weight and saving 180 tonnes of glass each
year. This initiative has a very positive impact on the weight transported
from Ireland to the United States.
Pernod
P ernod Ricard Deutschland has
adopted multimodal transport
(ship and rail) to convey products
from Spain, despite the fact that
the lead times involved are longer
than by road. All journeys between
Italy and Germany – representing
more than 700 trips – are also partly
made by rail.
T
he Absolut Company was awarded the Swedish “Årets Lyft 2009” prize
for its system of transporting goods by rail to France.
R
iver transport is now used more extensively by Mumm and Perrier-Jouët
champagnes, and the solution has been extended to Martell cognacs.
Volumes transported by river to the port of Le Havre have increased 6.3fold in one year.
Planning: “Make & Ship” at Chivas Brothers
Thanks to improved Planning at Chivas, containers are directly loaded
at the end of bottling lines at the Paisley and Kilmalid bottling facilities
for 46% of shipped volumes (up to 67% at Paisley), without any buffer
stock.
Pernod carried out an environmental impact assessment for the design of
Ballantine’s Pure Malt 12-year-old promotional packaging. The company
opted for the greenest solution, achieving reductions of 52% in energy
used, 63% in greenhouse gases, 92% in acid air pollution and 58% in
water pollution compared with the previous designs.
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Greater coordination and heightened environmental awareness
amongst the teams have made this active approach possible.
Questions with...
John Corrigan
Global Supply Chain
& Purchasing Director
Career path
◆ Formerly
Supply Chain and Purchasing
Director at Allied Domecq North
America, John Corrigan joined
Pernod Ricard as Global Supply
Chain and Purchasing Director
in 2005.
What sustainable development initiatives have been taken
in respect of Purchasing?
As part of a drive to reduce the total weight of glass purchased, a
number of subsidiaries have lightweighted some bottles representing key references in their portfolio (see examples opposite). The
environmental benefits of each lightweighted bottle are significant
at each stage of the Supply Chain, in terms of raw materials, energy
consumption, transport efficiency and recycling. Pernod Ricard’s
carbon footprint is also positively impacted (see page 99).
For certain raw materials, small, disposable containers have
been replaced with reusable containers able to store very large
volumes.
The Pernod Ricard eco-design training has been extended, with
beneficiaries including teams from Pernod Ricard Brasil’s Purchasing, Quality, Product Development and Marketing Departments,
Marketing and Industrial Operations teams from Ricard and Marketing teams from Martell Mumm Perrier-Jouët (see page 107).
What action has been taken in the area
of social responsibility?
The questionnaire that Pernod Ricard sends out to its main
suppliers includes a socially responsible practices chapter (see
pages 60 and 61).
What sustainable development approach have you
adopted in terms of logistics?
All of the Group’s logistics teams have long since taken sustainable development criteria into consideration in their approach to
transport and warehousing. The teams have recently reinforced
their green credentials: initiatives that in the past were taken sporadically on a local level, differing from one subsidiary to the next
have been stepped up and extended to other entities.
In 2008, Pernod Ricard UK managed to avoid 200,000 kilometres
of road, thanks to a study of pallet load plans for optimising
truck loads, limiting storage surface areas and reducing journey
times when distributing goods to customers. This study has been
extended to cover the whole of Europe, while a further study
looking at ways to optimise payload is also in progress.
The Group systematically considers multimodal transport (rail/
river) and this alternative is increasingly selected for routing the
Group’s products to customers.
A number of concrete examples (see opposite) illustrate these
initiatives, which together have enabled us to save almost 650
tonnes of CO2. These are just some, of the many, measures taken
across the Group.
“All of Pernod Ricard’s
logistics teams
have long since
taken sustainable
development criteria into
consideration in their
approach to transport
and warehousing. ”
How can Planning impact the environment?
Improving Planning is key for Chivas, which ships 30 million
physical cases to 100 different countries every year.
Improved management of demand on the various markets makes it
possible to draw up a more stable production plan covering a longer
period at the other end of the Supply Chain (see opposite).
Important savings come from eliminating trans-shipments, lower
finished goods inventory and turnover, shorter preparation times
and less frequent use of trucks and fork-lift trucks.
Products directly loaded from the bottling line to the container.
CORPORATE
SPONSORSHIP
CORPORATE SPONSORSHIP
Corporate sponsorship:
art and social outreach
By the time the Group was created in 1975, founding companies Pernod and Ricard had already built up a strong
tradition of sponsorship. In his support for all forms of artistic expression, Paul Ricard resembled the illustrious
patrons of the past. Pernod Ricard carries on this long-standing commitment, extending the Group’s focus to the
international stage.
Building on the socially responsible approach it has espoused ever since its creation, Pernod Ricard also ranks social
concerns among its top priorities. The Group’s managers and staff have been versed in this spirit of social assistance,
resulting in hundreds of outreach initiatives launched by subsidiaries in their local communities.
Cultural sponsorship
An enduring commitment to contemporary art
The primary aim of Pernod Ricard’s cultural sponsorship is to encourage
contemporary artistic expression. A host of initiatives at both the Holding
Company and the Group’s subsidiaries bear testimony to this goal.
The Centre Pompidou houses
Europe’s largest collection of contemporary art. When the museum embarked on
major renovation work in 1997, Pernod Ricard offered its support by financing the
water features added to the museum terraces, marking the beginning of a long-term
partnership.
In spring 2009, the Centre Pompidou hosted a Kandinsky exhibition featuring
90 major works by the famous theoretician of abstract art. The exhibition was one of
the most comprehensive retrospectives of the artist over the past four decades.
At a special evening reception organised by Pernod Ricard, 1,200 guests enjoyed a
private, guided tour of the exhibition. Members of the OstinatO chamber orchestra
provided the music for the evening, which included pieces by Stravinsky and Varèse.
OstinatO is sponsored by Pernod Ricard, and offers talented young instrumentalists
from music schools an opportunity to train as a professional orchestra musician.
Kandinsky exhibition at the Centre Pompidou.
In France, the Fondation Ricard strives to promote
contemporary art and is a reputed venue for emerging young artists. Each month,
conferences and discussions are organised as part of its “Conversations on art”
programme. Fondation Ricard also sponsors eight exhibitions a year.
The Fondation Ricard has become increasingly well-known over the last ten years
thanks to the Ricard Foundation Prize. The award –now the most important on the
Paris art scene – is attributed each year by a jury of art collectors to one of the artists
considered most representative of his or her generation. The Fondation Ricard buys
a work from the winning artist and donates it to the Centre Pompidou. The museum
then displays the work in its permanent collections.
Fondation d’entreprise Ricard.
The invitation-only Pernod Ricard
reception at the Centre Pompidou offered
1,200 privileged guests the chance to discover
or rediscover the world of Vassily Kandinsky.
The public exhibition attracted a total of
700,000 visitors.
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| Fondation Ricard branches out in Russia. In the past financial year, Pernod Ricard
Rouss organised the “Pernod Ricard Art World” exhibition, an unprecedented
promotion initiative on the Russian market aimed at celebrating contemporary
French art and the tenth anniversary of the Ricard Foundation Prize. The exhibition
was shown at Winzavod, Mosow’s most prestigious contemporary arts centre, in
partnership with the French embassy in Russia.
The show displayed the latest works from the nine artists who have won the
Ricard Prize since the Foundation was set up, and was the largest exhibition of
contemporary French art ever organised in Russia (seven out of the nine artists had
never previously exhibited in Moscow).
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Inter view
Colette Barbier, Manager
of the Fondation Ricard
Why did Ricard create a Corporate
Foundation for contemporary art?
The Foundation was not the result of
a one-off decision taken at a meeting
to invest in contemporary art so that
people would talk about Ricard. Quite
the opposite. The company has built its corporate culture
around the values of corporate sponsorship. Paul Ricard was
a genuine patron of the arts. He had many artist friends and
acquaintances even though he was not an art collector himself.
His aims were altogether more altruistic. What he cherished
above all was artistic creation, particularly in young artists to
whom he sought to give the means to express themselves. The
Fondation d’entreprise Ricard is simply carrying on his work.
How is Fondation Ricard different from other corporate
foundations?
We are not merely an exhibition venue, but a place where
contemporary art lovers and enthusiasts can meet to share and
discuss their interests.
We operate as an arts centre that aims to help young artists
give voice to their artistic ideas. We assist them in setting
up installations, particularly for artworks which draw on
innovative techniques or materials. We also help them talk
about and promote their work.
Every year we display the work of several artists at individual
or group exhibitions. We focus particularly on committed
artists who endeavour to portray the complexities of the world
around us.
How do you select the artists you exhibit?
We identify emerging young artists through our network. We
keep abreast of art produced in France, whether by French or
foreign artists, thanks to our close relationship with fine art
schools, the Centre Pompidou and Palais de Tokyo museums,
and daily contacts with the artists themselves.
Each year, some ten artists are shortlisted for the Ricard
Foundation Prize. A jury of around 100 collectors then agrees
on a winner. The Foundation’s role is to make sure the jury is
able to take a completely unbiased decision.
The “Les Archipels Réinventés” (Reinvented Archipelagos)
exhibition running between October 2009 and January 2010 at
the Centre Pompidou brings together the winners of the Ricard
Foundation Prize over the last ten years.
Our role in identifying and promoting promising young artists
has made the Ricard Foundation a vital part of the French art
scene.
The “Pernod Ricard Art World” exhibition (Moscow) focused primarily on sculpture but also featured installations, photography and video works,
genres all favoured by today’s new generation of artists.
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In 2008, Pernod Ricard renewed its support for Opéra Lafayette, an American opera
company from Washington DC. Founded in 1995, Opéra Lafayette breathes new life
into baroque and classical operas – primarily from the French repertoire – which
it stages for a contemporary audience. It has performed in Washington and New
York to high public and critical acclaim, and its recordings have met with worldwide
success.
Martell & Co partners Château de Versailles. After sponsoring an exhibition on silver
furniture crafted under the reign of the Sun King which drew 700,000 visitors,
Martell & Co undertook in 2007 to extend its partnership until 2012 and help fund
restoration work on the Queen’s Antichambre du Grand Couvert.
This splendid room was used for the Royal “Souper du Grand Couvert” ritual, a
sumptuous public supper during which the King and Queen dined facing members
of their Court.
Martell & Co is also helping to fund restoration work on the paintings gracing the
vaulted ceiling of the antechamber. This extremely intricate task is carried out using
a combination of traditional and cutting-edge restoration techniques.
Versailles and Martell & Co have discovered that their relationship runs deeper than
the shared values of art de vivre and excellence that they espouse as members of the
Comité Colbert, an association of some 60 luxury French brands. In fact, Martell was
founded in 1715, the same year in which Louis XIV’s reign ended.
Chateau de Versailles: Restoring a pictorial
layer or cleaning part of the painted ceiling of
the Queen’s Antichambre du Grand Couvert are
time-consuming, intricate tasks made possible
thanks to Martell & Co’s financial support.
The Polish Film “Festiwal” held at the Barbican
Arts Centre in London ended with a rare
concert by the famous composer and pianist
Michael Nyman.
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| “Martell Artists of the Year”. In late June at its annual awards ceremony –now one of
the most important dates in the international contemporary arts calendar – Martell
unveiled the names of the “Martell Artists of the Year” for 2009. Painter Zeng Fanzhi,
conceptual avant-garde artist Gu Wenda, sculptor Jiang Jie and Norwegian fashion
photographer Sølve Sundsbø all scooped up prizes at the ceremony held in Beijing’s
Today Art Museum.
Over the past five years, the achievements of 21 internationally renowned artists
working in a wide variety of genres have been honoured by the “Martell Artists of
the Year” award.
Pernod Ricard UK renews its partnership with the Barbican Arts Centre. Pernod Ricard
UK has supported the Barbican Arts Centre since June 2008. Located in the heart of
the City of London, the Barbican is the largest centre of performing arts in Europe.
It attracts more than 1.5 million visitors each year and helps promote artists and
films from across the globe, celebrating the diversity of cultural traditions.
Last year, Pernod Ricard UK was involved in several major projects at the Barbican.
Chivas Regal supported the London Jazz Festival, the UK’s largest jazz event. The
festival included performances from Herbie Hancock and other living legends from
around the world who came together to give ten days of concerts at which visitors
could enjoy all kinds of jazz styles. Havana Club sponsored a Cuban season organised
to mark the 50th anniversary of the Revolution. The programme covered several
artistic disciplines and featured major Cuban artists as well as lesser-known young
talent in the fields of music and film. Lastly, Wyborowa’s partnership with the Polish
Film “Festiwal” Kinoteka was celebrated at an evening devoted to music and film.
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Havana Club International shows off its Cuban colours. Under the “Havana Cultura”
label, Havana Club International has emerged as the leading partner of contemporary
Cuban culture in all its forms, both in Cuba and throughout the world. A number
of “Havana Cultura” festivals and events celebrating Cuban culture were staged in
2008/2009, in Canada, Chile, Belgium and the United Kingdom in particular.
Havana Club International was also a prominent partner of the 10th Havana
Biennial, lending its support to the organisation and helping to promote the event
along with various artists’ projects. It also stepped up its online promotion of
the Cuban artistic scene, with more than 20 new video clips posted on
www.havana-cultura.com. The website – now available in six languages – has won
many awards, becoming a point of reference for Cuban artists, the entire Cuban
community and those drawn to foreign cultures in general.
Havana Club, partner of the 10 th Havana
Biennial.
From left to right: José Emilio Fuentes Fonseca,
“Memoria & Memory”, Danza Contemporánea
de Cuba.
Pernod Ricard Venezuela endorses a street museum. This year, Pernod Ricard
Venezuela worked alongside the city of Baruta near Caracas on the “Museo Vial”
street museum, a project designed to bring art into the streets of the city in an effort
to give it a more human face and make art accessible to all.
Pernod Ricard Italia at the Triennale Bovisa. The past financial year saw a continuation
of the partnership between Havana Club and the Triennale Bovisa, one of Milan’s key
venues for art and design. The Triennale Bovisa sets out to promote art and culture
to a young audience by allowing them nocturnal exhibition viewings, providing an
innovative, convivial take on contemporary art.
Havana Club and the Triennale Bovisa take visitors on a fascinating adventure that
combines visual arts, gastronomy and exceptional spirits to forge a new concept of
urban, contemporary living.
ABSOLUT backs a Milan design school. Thanks to ABSOLUT, city spaces become Art.
Pernod Ricard Italia commissioned the well-known Italian wallpaper designer
Alessandro Guerriero to help regenerate certain neighbourhoods in the city. His
creativity is being asked to serve the cultural purpose of making city life more
beautiful on a daily basis. The funds donated to this project have financed a class on
textures at the Nuova Academia di Belle Arti, a Milan school of art and design.
Making art accessible to all is the idea which
spurred Pernod Ricard Venezuela into
supporting “Museo Vial”.
Pernod Ricard Swiss: Claudio Colucci’s Chivas Squeeze. The “Squeeze” by Swiss
designer Claudio Colucci is a unique piece of work illustrating the artist’s vision of
the world of Chivas Regal. The Squeeze gives full voice to the “Exuberant Luxury”
of the brand, marrying both prestige and celebration. The true spirit of Chivas
Regal emanates from this living creation, which marks Claudio Colucci’s first major
project in his native Switzerland.
Celebrating aesthetic perfection, the Chivas
Squeeze offers a unique experience for the
senses which encapsulates the flamboyant
world of Chivas Regal.
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At the “VISIONS – IN AN ABSOLUT WORLD”
event, the iconic Swedish vodka label gave
free rein to the imagination, creativity and
personal aspirations of young artists.
Pernod Ricard Deutschland gives ABSOLUT centre stage. ABSOLUT was the brainchild
behind “VISIONS – IN AN ABSOLUT WORLD”, an exhibition showcasing a selection
of work by 11 of today’s most important international style bloggers. Here, blogs are
much more than just a means of communication, becoming instead a new art form
in themselves, a snapshot of contemporary trends. The blogs are the work of trendsetters and inspire journalists, fashion designers and opinion leaders alike.
At the exhibition unveiled in Munich in June 2009, these virtual fashion icons
became real flesh-and-blood artists who got together to articulate their own
particular vision and meet their admirers.
These internationally renowned bloggers presented 10 of the best works from their
blogs and also created an 11th piece especially for the occasion, inspired by the “In
an Absolut World” advertising campaign. The work illustrated an artist’s personal
take on what a perfect world would look like. In sponsoring this event, ABSOLUT is
pursuing the tradition of interpreting the brand set by artists such as Andy Warhol
in 1985 and more than 400 major names since.
Irish Distillers: Jameson and film. Jameson identified film as a major sponsoring focus
more than 10 years ago. “Jameson Clubs” are now present at many prestigious film
festivals including Cannes, Venice and Bangkok. In the early years of its partnership,
Jameson supported short films produced by up-and-coming filmmakers. Today,
its partnership encompasses festivals and other film-related events in more than
20 different countries. The “Jameson Dublin International Film Festival”, “Jameson
Empire Awards” in the United Kingdom and “Independent Spirit Awards” in Los
Angeles are just three examples of this successful partnership in 2008/2009.
Jameson also sponsors a short film competition on behalf of Pernod Ricard Pacific,
providing financial backing to produce the best three films by young directors. A
similar project also exists in Turkey, where Pernod Ricard provides support for
scriptwriters.
Pernod Ricard India: a steadfast commitment to music. In India, the 100 Pipers brand
Pernod Ricard India brought together the
Scottish Chamber Orchestra and one of the
best known players of the Indian sarod to
celebrate the identity of 100 Pipers Scotch
whisky.
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| of Scotch whisky has a long-standing relationship with music. Popular artists like
Vanessa Mae, Ian Anderson and Jethro Tull, and Anoushka Shankar have recently
taken part in the “100 Pipers Pure Music” concerts.
Loyal to its roots, the brand teamed up with the British Council and Scotland. A
unique cultural ensemble featuring the Scottish Chamber Orchestra and sarod
maestro Ustad Amjad Ali Khan performed for local audiences (the sarod is an Indian
string instrument). The sell-out tour took in six major Indian cities and was highly
acclaimed by critics and applauded by many dignitaries. This was the case in New
Delhi, where the concert was attended by the Indian Vice-President, the President
of the Indian Parliament, and celebrated sitar virtuoso Ravi Shankar.
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In a bid to promote traditional
South Korean music and dance known as “gukak”, Pernod Ricard Korea offers an
“Imperial Scholarship” to pupils of the specialist Gukak National Middle & High
School. In 2008/2009, the number of scholarship pupils increased and a first school
trip abroad was organised. The trip gave pupils the opportunity to study works from
the Western classical repertoire at music schools in Austria and the Czech Republic,
where they in turn performed Korean music and dance for the Western musicians.
Pernod Ricard Korea also created the first-ever “Imperial Gukak Challenge” tour with
the aim of raising the profile of this traditional art form among the local population
and giving students more opportunities to perform. Over 250 pupils took part in the
first edition of this event.
Since 2005, Pernod Ricard Korea has also sponsored the annual “Royal Salute Mark
of Respect” awards, which pay tribute to the most relevant art and cultural figure
in South Korea in any given year. This year, the award went to one of South Korea’s
most revered and well-known conductors, Chung Myung-Whun.
Pernod Ricard Korea promotes Korean culture.
Top: South Korean conductor Chung MyungWhun was given this year’s “Royal Salute Mark
of Respect” award.
Bottom: In February 2009, Pernod Ricard
Korea granted a scholarship to 24 pupils of
the Gukak National Middle & High School.
The “Punk Bird Family” imagined by Sean Purucker: one of the most amazing works presented
at this year’s “Montana World of Wearable Art Awards”.
The “Montana World of Wearable Art Awards” sponsored by Pernod Ricard New
Zealand: 20 years of consistent success. This year, the Montana brand celebrated the
20th edition of the “Montana World of Wearable Art Awards”, an utterly astonishing
show of wearable art involving designers from New Zealand and around the world.
150 wearable art creations were selected to take part in a theatrical extravaganza
during performances staged in Wellington, the New Zealand capital. This year, more
than 35,000 visitors flocked to see the show.
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Humanitarian sponsorship
Outreach initiatives launched by subsidiaries
Pernod Ricard accepts that as an industry leader, it must set the example.
Our subsidiaries across the globe are therefore engaged in a broad
spectrum of outreach and community initiatives. In line with the principle
of decentralisation, they are free to choose the humanitarian causes they
wish to sponsor. We cite below just a few of examples of their work.
In India, the “One Rupee Fund” was set up
to aid social development. At the outset, Pernod Ricard India donated one rupee to
the Fund for each bottle of spirits sold. Now, a fixed sum is donated each year, most of
which helps fund three dispensaries in states in the north and west of the country.
These dispensaries see more than 300 patients a day. They organise regular vaccination
and health education campaigns for people from surrounding villages, as well as
special projects to help blind and disabled persons.
Pernod Ricard India’s “One Rupee Fund”.
Pernod Ricard Swiss supports child education in Cuba. Pernod Ricard Swiss is
committed to developing sports and educational opportunities for children in Cuba.
It has been a sponsor of “Camaquito” since its creation in 2001, and takes part in a
variety of fundraising events.
Pernod Ricard Swiss offers direct support by participating in the annual “charity run”
and donating its brand products for certain events. It also provides aid indirectly by
setting up a chain of solidarity with its biggest customers and partners in a bid to
garner their support for “Camaquito”. Its efforts have sparked a pipeline of initiatives,
in particular the full-scale renovation of nurseries and schools in Camagüey, and a
number of wastewater treatment projects.
Employees at Corby (Canada) get stuck in. In autumn 2008, more than 30 employees
from Corby’s head office gave up their time to work on various projects in support
of “Habitat for Humanity”, a charity specialising in the construction and renovation
of housing for the underprivileged. Thanks to their help and to over 15,000 dollars
in donations, Corby’s employees have made a real difference to underserved
communities.
Employees at Corby’s head office gave both
time and money to projects in support of the
charity “Habitat for Humanity”.
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The George Brown College is Canada’s largest hotel and catering school, and first in
line to train the next generation of industry professionals. Pernod Ricard’s Canadian
subsidiary Corby pledged USD 300,000 as part of a five-year partnership with this
prestigious school. The partnership includes training courses on “mixology” and
food and wine pairing in the Liqueur McGuinness and Jacob’s Creek laboratories.
Pernod Ricard USA in education drive. In the United States, the rate of unemployment
among the Afro-American community is nearly 12%, far higher than the national
average. To fight this injustice Pernod Ricard USA opted to expand its job training
and mentoring programme, which is designed to provide tangible opportunities to
promising individuals.
In 2009, the Seagram’s Gin Pursuit of Excellence Institute covered four US cities:
Atlanta (Georgia), Chicago (Illinois), Tampa (Florida) and Columbia (South Carolina).
The programme commenced with grants totalling USD 100,000 allocated to leading
civic rights organisations across the country. Its focal point is a rigorous four-week
training session administered by local social service and outreach organisations
working to support the black community.
Participants attend multiple training sessions during which they receive computer
training, attend interview skill workshops, participate in self-esteem building
exercises and technical training classes, and gain insight into dress-for-success and
financial empowerment strategies. Each participant receives a USD 500 stipend,
a laptop, a briefcase with weekly lesson plans and supplies, and a suit. The most
outstanding participant from each city will receive a USD 2,500 fellowship.
Pernod Ricard Venezuela’s efforts rewarded. In June 2009, Pernod Ricard Venezuela
was named “Corporate Citizen of the Year” by AVVA (Venezuelan-American
Friendship Association), a non-profit organisation heavily involved in educational
projects at both local and international levels.
Pernod Ricard Venezuela was named
“Corporate Citizen of the Year”, underscoring
its deep-seated, long-standing commitment
to helping the underprivileged.
Haiti: providing access to drinking water. Since 2005, Pernod Ricard has supported
Appel, an international aid organisation which runs healthcare and educational
initiatives for the world’s most underprivileged children.
In 2008/2009, the Group continued to fund the construction of rainwater collection
tanks in Turtle Island, Haiti. It also sponsored a health education programme in
conjunction with the local hospital. Due to overpopulation and the scarcity of water
points, the homes located on Turtle Island are often two hours’ walk away from the
nearest springs which trickle slowly and are in themselves hopelessly inadequate for
a population of 35,000 inhabitants. This means that women and children continue
to make long journeys to fetch water. Thanks to Pernod Ricard’s support since 2005,
the programme has picked up pace and it is hoped that more than 400 water tanks
will be in place by 2010.
Pernod Ricard partners PlaNet Finance. On 1 July 2008, Pierre Pringuet, Chief
Executive Officer of Pernod Ricard, signed a partnership agreement on behalf of the
Group with PlaNet Finance, an international aid organisation founded by Jacques
Attali. PlaNet Finance aims to alleviate poverty worldwide through the development of
microfinance. It offers financial services (savings products, credit, insurance, etc.) to
low-income populations without a regular salary denied access to traditional financing
channels. PlaNet Finance believes that giving the most underserved communities the
means to earn a living is the most sustainable solution to world poverty.
Pernod Ricard has pledged to give €50,000 per year over a three-year period to
microfinancing projects targeting women in Senegal, Mali and the Ivory Coast. Its
aim is to hone women’s entrepreneurial initiative in order to encourage autonomy
and development (training, financing and small business launches for example). In
this way, Pernod Ricard intends to help to change attitudes to women, particularly
in terms of the role they can play in social and economic life.
In supporting PlaNet Finance, Pernod Ricard
demonstrates its active commitment to
microfinance initiatives that seek to offer a
sustainable solution to poverty.
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Index
A
G
Advertising and promotional expenses 4, 14, 19, 71
Annual Shareholders’ meeting 3, 70
Appointments Committee
64, 66, 67
Audit Committee
64, 67
General management Governance Greenhouse gas emissions B
P
3, 67, 69, 84, 86
16, 64, 66, 67, 75
99, 102, 108
H
Biodiversity 104
Board of Directors 2, 64, 66-69, 93, 96
Brand Owners 10-12, 21, 24, 26-28, 30, 32,
35, 36, 38, 82
Brand protection 11, 16, 17, 63, 68, 69, 79, 97
Breakdown of share capital 73
History 4, 14, 15, 45, 60, 67, 70
Holding Company 16, 68, 69, 79, 83, 86, 87, 95,
96, 114
Holding Company Management 69
Human resources 7, 16, 36, 68, 69, 78, 79,
83, 84, 93
Humanitarian sponsorship 120
C
I
Capital expenditure projects 71
Change in net dividend 73
Change in Pernod Ricard share price 63
Club Premium
62, 74-76
Commodities and raw materials 59, 98, 99, 102,
104, 107, 108, 111
Communication 16, 63, 67, 74, 89
Competition
9, 46, 54, 63, 86, 87
Control of advertising ethics
96
Cultural sponsorship 75, 114
Industrial property
99-101
Industrial scope
98, 100
Industrial sites/production sites 63, 98, 105, 109
Innovation 14, 20, 32, 36, 45, 46, 50, 54, 57, 89
Intellectual property
87
Internal control 63, 67, 96, 97
Irrigation 102, 104, 105
ISO 9001
61, 63, 102
ISO 14001
9, 61, 63, 102
D
E
Eco-design
63, 99, 107
Emerging countries
14, 20, 41, 71, 72, 79
Energy consumption 99, 102, 106, 110, 111
9, 16, 34, 36, 42, 45, 46, 54, 59, 61,
Environment
63, 69, 72, 75, 78, 98-109, 110, 111
Environmental indicators
63, 102
Environmental management 9
Executive Board
69
Executive Committee 43, 47, 52, 68, 69, 96
Executive Officers
64, 66, 67
F
Free shares
122
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p e rn o d
73, 79
ri car d
| Quality 14, 15, 17, 22, 24, 30, 32, 34,
36, 46, 48, 49, 52, 56, 57, 59, 61-64, 66, 67,
69, 71, 74, 75, 89, 98, 99, 102, 104, 105, 111
R
Recycling 107, 111
Regional Executive Committee
43, 47, 52
Remuneration 48, 64, 67, 70, 79, 81
Remuneration Committee
64,67
Research Centre
88, 99
Responsible drinking
3, 50, 59, 61, 63, 92-95
S
Sale of assets 71, 86
Sales
4, 5, 6, 32, 42, 56, 71, 98
Share capital
3, 6, 9, 11, 15, 24, 65, 67, 70-74,
76, 86, 87, 119, 132
Share price
70
Shareholders 3, 61
Staff turnover rate
79, 81, 85
Stock market data
72, 74, 76
Stock options
79
Strategic Committee
67
Strategy 3, 5, 7, 14, 16, 17, 26, 28, 32, 34,
36, 38, 42, 44-46, 48-50, 54, 57,
59, 62-64, 69, 70, 74-76, 83, 87
Sustainable agriculture
63, 99, 102, 104, 108
Sustainable development 1, 59, 61, 63, 76,
105, 111
1, 85
L
Labour social
Legal Lengh of service 84
16, 68, 69, 86, 87, 96
62, 83
M
Management Committee 20, 22, 26, 28, 30, 36,
38, 56, 57, 96
Management structures 68
Market 12, 13
Mobility 62, 78, 79, 81
T
Training
N
Net profit from operations
82, 83
72
7, 14, 19, 20, 36, 45, 48, 50,
57, 74, 75
55, 75
Q
K
Key figures Debt 5, 67, 69-71
Directors
67
Distribution network 7, 10, 15, 17, 20, 36, 41, 42,
46, 56, 68, 69, 80, 86
Dividend
5, 70, 73
Drinking and driving 92
Payroll Pernod Ricard share
Premiumisation
Publications
62, 83, 95
V
4, 5, 6, 49
Value of Pernod Ricard share 72
3, 5, 6, 8, 9-11, 14, 15, 17, 24,
Vin&Sprit
50, 54, 67, 70, 79, 80, 86
O
Operating margin 5, 71
Organisation 3, 5, 7, 16, 50, 52, 61, 66, 69, 75, 78,
87, 94, 117, 120, 121
W
Water consumption Water resources
Workforce |
2008/ 2009
ANN U A L
99, 105
63, 99, 102, 105
79, 80, 82, 83, 85
REPOR T
|
Communication department
Pernod Ricard – 12, place des États-Unis – 75783 Paris Cedex 16 – France
A French Public Limited Compagny with share capital of €400,892,830.80
Head office: 12, place des États-Unis – 75783 Paris Cedex 16 – Tel.: 33 (0)1 41 00 41 00 – Fax: 33 (0)1 41 00 41 41
RCS Paris B 582 041 943
Copies of this document are available on request from the Group’s head office.
The World’s
C o- l e a d e r
15 strategic brands
Gl obal No. 4
(2)
in Wines
in Spirits(1)
A trip around the world’s
most beautiful bars
This year, Pernod Ricard showcased its 15 strategic brands in a gallery of photos staged in some of the world’s most
emblematic bars.
Whether traditional in style or more avant-garde, these sometimes out of the ordinary locations all have a certain character,
offering conversation, conviviality and enjoyment of our best products. In settings where strong personalities can express
themselves, the Group’s wines and spirits find their natural place.
HOLDING
ABS
B OLU
OLUT
T /VODK
V
VODKA
ODK
O
DK A
ABSOLUT /AB
MALIBU
KAHLÚA
(3) (33)
THE
HE
E AB
ABSOL
ABSOLUT
SOLUT
SOL
U COM
UT
OM
M PA
PANY
Y 3)
The Absolut
Company
JAMESON
STOCKHOLM
Irish Distillers
CHIVAS REGAL / BALLANTINE’S / THE GLENLIVET / BEEFEATER
D UBLIN
|
Une cheminée artificielle domine les lieux animés par les meilleurs DJ.
Chivas Brothers
LON D ON
PERNOD RICARD AMERICAS
Luch
Bar Mo scou, Russie
Avec probablement le bar le plus long de Moscou, le Luch Bar exhibe de belles bouteilles de liqueurs parfumées.
PA RIS
MA RSEILLES
N EW YO R K
ABSOLUT
CHIVAS REGAL
BALLANTINE’S
JAMESON
RICARD
Juju ◆ Chelsea, United Kingdom
M2 ◆ Shangai, China
Lounge 69 ◆ Rio de Janeiro, Brazil
Luch Bar ◆ Moscow, Russia
Café du Soleil ◆ New York, USA
FRANCE
PERNOD RICARD EUROPE
PERNOD RICARD ASIA
RICARD
MARTELL / MUMM / PERRIER-JOUËT
H AVAN A
SOCIÉTÉ RICARD
Martell Mumm Perrier-Jouët
HON G KON G
SOCIÉTÉ PERNOD
HAVANA CLUB
Havana Club International
Josefina
A D ELA IDE
6 Brand Owners
(4)
4 Regions(5) spanning 70 countries
Pernod Ricard’s geographical coverage in 2009
Pernod_RA09_CouvGB.indd 2
|
Sto ckholm, Suè de
Avec son bar blanc orné de lustres en cristal et sa terrasse décorée de palmiers et coussins colorés, le Josefina
est le rendez-vous de la haute société suédoise. Situé sur l’île de Djurgården, véritable « Central Park » de
Stockholm, il constitue l’endroit de prédilection des amateurs de grands vins.
(1) Pernod Ricard Market View, based on IWSR (2008) – International and local
spirits including V&S, excluding RTDs and distributed brands.
(2) Pernod Ricard Market View, based on IWSR (2008) – Wines > US$3 a bottle.
(3) Brand Owner set up on 24 July 2008.
(4) Following integration of the Malibu Kahlúa International brands into The
Absolut Company.
HAVANA CLUB
MARTELL
PERRIER-JOUËT
JACOB’S CREEK
MALIBU
El Floridita ◆ Havana, Cuba
Lunar ◆ Singapore
Arthur’s Rive Gauche ◆ Geneva, Switzerland
Josefina ◆ Stockholm, Sweden
Saphire Bar ◆ Berlin, Germany
BEEFEATER
MUMM
THE GLENLIVET
MONTANA
KAHLÚA
Aliatar ◆ Granada, Spain
Champagnerie Mumm ◆ Milan, Italy
Bar Raphaël ◆ Paris, France
Ocean Room ◆ Sydney, Australia
Rosa Mexicano ◆ New York, USA
S YDN E Y
AU C K LA N D
JACOB’S CREEK / MONTANA
Pernod Ricard Pacific
Work on page 10: Fred Schneider, a Swiss graphic artist, painter and sculptor. Photo credits: Pernod Ricard Photo Studio (Marc-André Desanges), Grzegorz Lepiarz, Anne Chauvet, Philip Touitou. Advice and coordination: Arts Affaires — Courtesy Regina Gallery
A d e c e n t r a l i s e d o r ga n i s a t i o n
(5) Asia and Rest of the World, Americas, Europe (except France) and France.
3/11/09 19:00:21
An active sponsor of major contemporary art events, each
year Pernod Ricard commissions an original work from an
artist for the cover of its Annual Report.
This year, looking ahead to the Russia-France cultural
season in 2010, Pernod Ricard’s bold choice was young
Russian avant-garde artist Victor Alimpiev.
Born in 1973 in Moscow, Victor Alimpiev studied in Russia
and Sweden. He is currently sponsored by the celebrated
Regina Gallery and his work features in the collections
of leading museums and foundations including the Tate
Modern, Centre Pompidou and the Ekaterina and Trussardi
cultural foundations.
Title of the artwork:
“Now try to remember
what is this breathing out called”
Arts Affaires – Courtesy Regina Gallery /
Victor Alimpiev
From video to painting, Victor Alimpiev’s work in diverse
genres forms an integral whole. The artist asks us to
perceive a beat as in a dance or living picture (tableau
vivant). With an extremely subtle, intricate but soft
approach that embraces modesty and simplicity, his
unique visual language speaks to us through a repetition
of subject and image.
Advice, design, creation & production:
A NNUA L R EPORT
GB
Successful
integration
of Vin&Sprit
and ABSOLUT
A n n uA l R e p ort
Since its creation in 1975, Pernod Ricard has
developed at a fast pace, through both organic
growth and a series of acquisitions. After the
integration of part of the Seagram businesses in
2001 and Allied Domecq in 2005, that of
Vin&Sprit was the main highlight of financial
year 2008/2009.
Despite the difficult international economic
climate, the teams and iconic brand ABSOLUT
were brought onboard successfully and even
produced greater-than-expected synergies.
Furthermore, sales of non-strategic brands and
an increase in capital of €1 million conducted
during the financial year, enabled the Group to
rapidly regain its financial flexibility.
Pernod Ricard now has nearly 19,000 employees
and generates sales of over €7.2 billion. The
Group has a portfolio of 15 strategic brands with
international reach and its own distribution
network, spanning over 70 countries. The
strategy involving increasing Premiumisation
of its brands and growing presence in the new
economies allow it to continue its profitable
growth momentum.
Net sales
7,203
million
e
(+9%, organic growth stable)
Profit from recurring operations
1,846
million
e
(+21%, organic growth +4%)
Group share of net profit
from recurring operations
1,010
million
e
(+13%)
Group share of net profit
945
e
(+13%)
million

A socially and environmentally responsible company

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