Entreprendre No. 45, Autumn-Winter 2004

The
magazine
for
P e r n o d
R i c a r d
s h a r e h o l d e r s
USA
A growing business
Success story
The Group’s anis spirits
Visitor centres
There’s something about
Jameson
New concepts for leaders
Discovering Martell
and its exceptional cognacs
No. 45 - autumn-winter 2004
O
N
T
E
N
T
4
S
We revise upwards
our prospects for growth !
▲
INTERVIEW
ENTREPRENDRE
& SHARES
Interview with Patrick Ricard, Chairman and CEO of Pernod Ricard.
▲
10
16
REGION
SUCCESS STORY
The USA: a growing business
There’s something about
Jameson
The United States represents close to
one quarter of worldwide wine and
spirits revenue. It is also a market in
a strong growth phase, and one of
the Group's priorities.
22
7
Since joining the Group in 1988,
Jameson has had year on year growth
of almost 9% and reached a total
sales volume of 1.6 million cases in
2003.
Uninterrupted growth for over 16 years.
▲
INNOVATION
The Group’s anis spirits
New packagings for Ricard and
Pastis 51, distribution of ready-todrink Ricard through medium and
large outlets. “Créateurs” bottle for
Ricard, launch of Pastis 51 Citron…
The year has been rich in innovations for the Group’s anis spirits.
▲
C
28
VISITOR CENTRES
▲
Discovering Martell
and its exceptional cognacs
At the gates of the old city of
Cognac, Gâtebourse, the centre is
adjacent to the Martell facilities.
“Welcome to the oldest major cognac
houses !”
32
QUALITY, SAFETY
ENVIRONMENT
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3
We revise
upwards
our prospects
for growth
[
S T R A T E G Y
]
Interview with Patrick Ricard,
Chairman and CEO of Pernod
Ricard
In the first half of 2004, Pernod Ricard has made progress in all of its markets.
These good results allow the Group to revise upwards its prospects for 2004. What
are the ingredients for these excellent projections?
Patrick Ricard: Pernod Ricard’s growth is the result of a subtle cocktail
that mixes, in particular, the excellent results achieved by our premium
brands and those of our worldwide distribution network. Geographically, in the first half of the year Asia and America have been the two
driving forces of our operating profit organic growth, generating more
than 80% of the increase.
In Europe, despite a contrasting environment, the Group has maintained dynamic growth. We obtained excellent results in Germany, the
United Kingdom, as well as in Greece. As far as the countries that have
recently become part of the European Union are concerned, such as
Poland or the Czech Republic, our brands are beginning to fully benefit from the disappearance of the customs barriers.
How did your premium brands, particularly Chivas Regal and Martell, perform?
Patrick Ricard: Our premium brands have recorded a spectacular increase
in China: Chivas Regal doubled its volume in Chinese Asia, and is
showing substantial growth in South America, among other things,
with the help of the “This is the Chivas life” campaign, which is working very well. Sales of Chivas Regal have now exceeded 3 million cases,
showing an increase of +11%, and have made progress in all regions.
Sales of our Martell cognacs have, for their part, shown an increase of
+8%. It’s the higher-quality brands that are showing substantial growth.
Thus, Martell Cordon Bleu registered a record increase of +27%. It is
indeed a unique product in the universe of cognac. It is mainly developing in Asia, and especially in China, Malaysia, Taiwan, and on the
duty-free market.
The Jameson, The Glenlivet, and Jacob’s Creek brands are also making
good progress. This good news allows us to revise upwards our
prospects for 2004, with internal growth in operating profit (on a comparable basis and rates of change), increasing at rates of +8% to +10%.
sumption, we decided to make large advertising and marketing investments in our brands, particularly in Ricard and the whiskies.
These investments constitute, in our view, our profits of tomorrow.
The +1.6% increase in our sales in France seems to demonstrate this.
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NO. 45 -
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▼
Despite difficult market conditions in France, Pernod Ricard is increasing its
sales there. How do you explain that?
Patrick Ricard: In France, in a difficult context marked by a drop in con-
5
[
S T R A T E G Y
]
For example, Clan Campbell Scotch whisky is now at the top of its category. However, these large advertising and marketing investments represent a burden on our operating profit, which shows a downturn in
France.
How do you intend to pursue and support your growth in the future?
Patrick Ricard: Our distribution network, which is now worldwide, pro-
Modification of
the Pernod Ricard
fiscal year
The Mixed Shareholders’ Meeting
has decided to modify the Pernod
Ricard fiscal year, to begin on 1 July
and end on 30 June of the following
year. Accordingly, the current fiscal
year will have an exceptional
duration of 18 months:
from 1 January 2004 to 30 June 2005.
The next Shareholders’ Meeting will
take place on 10 November 2005.
With Pernod Ricard obtaining more
than 60% of its revenue in the
second half of the year, particularly
due to major sales for end-of-year
celebrations, this change will make
the company’s revenues more easily
understandable. This will also
make it possible to draw a better
comparison between the
performance of Pernod Ricard
and of its main competitors, whose
annual closure is also at that time.
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AUTUMN-WINTER
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entreprendre
vides significant support for this growth, and, because of that, I would
like to congratulate all of our teams throughout the world for their efficacy and dynamic work. We have increased our advertising and marketing investments by 13% worldwide. Moreover, creation and innovation for us are additional opportunities for development. In the Group,
there has always been a real passion for creating. Recently, we have used
this for our high-end brands.
As an example, 18-year-old Chivas Regal Scotch whisky has seen its
icon status amongst luxury whiskies reinforced by a new look. Our
teams have also revisited The Glenlivet range, our number one singlemalt Scotch whisky. A new advertising campaign has been launched on
its main markets.
As for aniseeds, Ricard, with a new look, is the object of a new advertising campaign. Pastis 51 Citron has been launched in a new effort to
revitalise the aniseed market. Lastly, our portfolio has been expanded to
include a new New Zealand wine brand, Framingham.
As regards your debt, Pernod Ricard has mandated four banks to put in place a
new bank loan. What is the objective?
Patrick Ricard: It’s quite simple: to benefit from more favourable conditions for the loan that we took out at the time of the acquisition of the
Seagram activities in 2001. In the course of that operation, on the one
hand, we repaid the amount of the former loan we’d taken out in 2001.
On the other hand, we concluded a new multicurrency syndicated loan
in a total amount of EUR 1.4 billion, for a term of five years, with four
financing partners (BNP Paribas, Calyon, JPMorgan, and SG CIB).
Following the conclusion of this new loan, Pernod Ricard benefits from
more favourable financing conditions, eliminating the constraints and
guarantees of the previous loan. The margin paid thus goes from 0.55%
to 0.225% - 0.275% per year depending on the utilisation of the new
credit line. This shows our shareholders, once again, that our teams are
keeping a close eye on the Group’s financing costs.
The Shareholder’s Meeting voted to change Pernod Ricard’s fiscal year, which
will last from 1 July to 30 June. Therefore, the current fiscal year will have the
exceptional duration of 18 months. When do you plan on making the first interim
dividend payment?
Patrick Ricard: Due to the extraordinary duration of the fiscal year,
two interim dividend payments will be made. The first payment of
EUR 0.98 per share will be disbursed on 11 January 2005. In accordance with prior practice, this payment is equal to 50% of the dividend
obtained in fiscal year 2003. ■
New look for Ricard
and Chivas Regal 18;
Overhauling the
The Glenlivet line;
Launching Pastis 51 Citron…
There has always been
a real passion for creation
in the Group.
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[
E N T R E P R E N D R E
A N D
S H A R E S
]
The Pernod Ricard Share
Opinions of the economic and financial community
In its ratings of the 400 best global companies, the American magazine Forbes listed Pernod Ricard as one of the most attractive companies
for investors.
Forbes: “We'll boldly suggest that these 400 firms - representing less than 1% of the world's publicly listed companies - are prime candidates
for a growth-oriented equities portfolio.”
La Tribune: “The number three company worldwide continues to give the market pleasant surprises. Its value indicates the second best
performance of the CAC 40 this year.”
Les Echos: “Pernod Ricard has entered the virtuous cycle of regular growth, more and more profitable, and an ever-healthier balance sheet,
as the debts incurred to acquire Seagram continue to be repaid.”
Financial Times: “Compared to Pernod Ricard, Diageo’s earnings growth will probably continue to look mundane.”
L’AGEFI: “…the Group does better than the majority of its competitors.”
Evolution of the Pernod Ricard share
Value from 1 May 2004 to 12 November 2004 (closing price)
EUR 113
The share reached its historic high on 5 November 2004.
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AUTUMN-WINTER
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entreprendre
Register your shares as pure registered shares
Registering your shares as pure registered shares refers to registering your shares in the
records of the company, and allows you to:
• Take advantage of free custody and regular management.
• Receive personalised information about Pernod Ricard in the Annual Report
and Entreprendre, sent directly to pure registered shareholders.
• Be invited automatically to the Shareholder’s Meeting: all documents necessary
for participation will be automatically sent to you by ordinary post, at least 15 days before
the date of the Meeting.
• Attend the General Meeting without blocking your shares: as a pure registered
shareholder, you only have to show proof of identity.
a
The share
Rating:
First Market, Euronext
Paris SA
Codes:
ISIN >
Bloomberg >
Reuters >
Datastream >
FR0000120693
RI FP
PERP.PA
F:RCD
12-month sales figures:
Inclusion in indices:
CAC 40, SBF 120, SBF 250,
Euronext 100, FTSEurofirst 100,
DJ STOXX600, DJES MID EUR,
S&P Europe 350, S&P Euro Plus
and S&P Euro
Sector indices:
DJES Food & Beverage
and FTSE Global non-cyclical
consumer goods
3 February 2005
Number of shares issued:
12-month financial results:
70,484,081
In order to register as a pure registered shareholder, Pernod Ricard has developed
a procedure with the Société Générale.
All you have to do is contact the Société Générale at 0800 119 757 (hotline for calls within
France) or + 33 2 51 85 67 89 for calls from other countries. If you are not yet a shareholder,
a first-time purchase procedure for pure registered shares has also been developed.
Financial calendar
17 March 2005
15-month sales figures:
9 May 2005
Share buyback
In accordance with the authorisation
given at the Shareholders’ Meeting
of 17 May 2004, Pernod Ricard
has initiated a share buy back process.
As per September 2004, 1,569,293
shares have been bought back
at an average price of EUR 101.54.
Among them, 569,293 are intended
for a future stock option plan.
18-month sales figures:
Find the share price in real time as well as
the latest financial information at:
28 July 2005
www.pernod-ricard.com
18-month financial results:
22 September 2005
Shareholders’ Meeting:
10 November 2005
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9
[
The
R E G I O N
]
USA
a growing
REP-
RESENTS CLOSE TO ONE
QUARTER OF WORLDWIDE
WINE AND SPIRITS REVENUE. IT IS ALSO A MARKET
IN
A
STRONG
GROWTH
PHASE, AND ONE OF THE
GROUP’S PRIORITIES.
n a market where all spirits and wine categories
increased in size last year, Pernod Ricard USA has
grown twice as fast as the market, at 9%,”
remarked with pride Michel Bord, Chairman and
CEO of Pernod Ricard USA. “We are optimistic
about the business, as our brands continue to strengthen
during 2004.”
Pernod Ricard USA is the leader in gin with
Seagram’s Gin, in single malts with The Glenlivet,
in Irish whiskeys with Jameson and Bushmills, and
in premium bourbons with Wild Turkey. Both
I
business
▼
THE UNITED STATES
[
R E G I O N
Jameson and the Jacob’s Creek Australian Wines were included on Impact
Magazine’s list of 2003 “Hot Brands”,
crowning their achievement of doubledigit growth. “Chivas Regal is the number
two premium Scotch whisky,” added
Michel Bord.
“In the American market, imported brands,
premium brands and flavored brands are
the fastest growing segments,” explains
Michel Bord. “Therefore, we have looked
for a way to capture a part of this growth
with the introduction of premium and super
premium vodkas, flavored vodkas and other
new products, such as Bushmills Irish
]
apple, raspberry, citrus and vanilla. “We
have also launched Seagram’s Platinum
Select Vodka, building on the success of the
base brand,” explains Michel Bord.
Seagram’s Platinum Select Vodka, a
100 proof vodka, is distilled and bottled at Pernod Ricard USA’s manufacturing facility in Lawrenceburg, Indiana. This ensures exceptional quality
in the entire process of production and
thus reinforces the reputation of the
“Smoothest Name in Vodka.” This
top-of-the-line vodka is enjoyed neat,
not mixed.
Jimmy Russell,
a half century of services
to Wild Turkey
Seagram’s Gin
> No. 1 Gin
50 years in bourbon, that’s to be celebrated!
It is a fact that Jimmy Russell, Master
Distiller of Wild Turkey Bourbon, joined
the Lawrenceburg, Kentucky, distillery
in the southern United States in 1954.
Bourbon is part of a family history for Jimmy
as he himself was born a few kilometers from
the distillery. His father and his grandfather
also spent their careers with Wild Turkey.
Today Jimmy is a living legend. His fans see
in him “the best and wisest distiller of bourbon
active today.” The recipe of his success? “Work
with patience and a constant pledge of quality”,
explains Jimmy.
As the third Master Distiller since the founding
of Wild Turkey, Jimmy made a grand tour
celebrating his 50 year tenure from Louisville,
Kentucky, bourbon country, to Tokyo, Japan.
He was recently in Paris for the Whiskey
Festival.
To celebrate his half-century, a special bourbon,
“Wild Turkey Tribute,” has been created
in a limited edition (several thousand bottles)
of a 15-year-old bourbon. Sold exclusively
in the United States and Japan, this bourbon
has been created from unique barrels specially
selected by Jimmy 15 years ago. The finest
ingredients were used to create a superior and
distinct taste, the key to the success of Wild
Turkey, the most widely sold premium bourbon
in America today.
The Glenlivet
> No. 1 Single Malt
Jameson
> No. 1 Irish Whiskey
Wild Turkey
>No.1 Premium Bourbon
Novelties in the vodka category
The vodka market in the United States
represents 41.5 million cases (source:
Adam’s Handbook Advance 2004). At a
growth rate of 5.3%, vodka is one of
the most promising categories in the
spirits sector. Pernod Ricard USA reinforced its position with a new brand,
Seagram’s Vodka, and a “super-premium” vodka, Wyborowa Single
Estate.
Seagram’s Vodka is packaged in the
renowned bumpy bottle like Seagram’s
Gin. Only a few months after its launch,
this new product passed the half-millioncase mark. Flavored versions include
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Imported super premium vodkas have
been experiencing dramatic growth.
Pernod Ricard USA is entering the
market with Wyborowa Single Estate, a
Polish wódka, sold in a unique bottle
designed by the famous architect Frank
Gehry (see Entreprendre 44).
Priced in the 30 dollar range (EUR 25),
Wyborowa Single Estate is created
from the rye cultivated on the same
property where it is distilled in the village of Turew in Poland. Since its introduction, it has received many accolades
in the press. This super premium wódka
will be available throughout the United
States in 2005.
Capitalize on Irish heritage
In 2004, capitalizing on the Irish
whiskey credentials and heritage of
▼
Cream. New products are in effect an
important source of growth for Pernod
Ricard USA.”
Bushmills, Pernod Ricard USA launched
Bushmills Irish Cream, a rich cream
liqueur of superior quality.
Bushmills Irish Cream is created from
fresh cream, sugar, cacao, and for authenticity Bushmills Irish whiskey, the
product of the oldest licensed whiskey
distillery in the world with more than
400 years of knowhow. “These characteristics permit us to differentiate ourselves
from other brands on the market,” continues Michel Bord.
Bushmills Irish Cream is enjoyed as a liqueur, with or without ice, and it also provides the perfect ingredient to enhance
coffee, hot chocolate or other cocktails.
Bushmills
> No. 2 Irish Whiskey
Chivas Regal
> No. 2 Premium
Scotch Whisky
Marketing at the forefront
Always dynamic, the Pernod Ricard
USA management team has developed
marketing initiatives that are at the
forefront of the industry. To support
future growth, Seagram’s Gin, Chivas
Regal and Martell have developed
unique programs that are particularly
relevant to these brands primary consumers.
Seagram’s Gin has organized the “Seagram’s Gin Live Tour,” a musical tour
including 24 American cities, specifically focusing on the African-American
community. “Seagram’s Gin, our most
important brand in terms of volume, is
responding to these targeted marketing initiatives,” confirms Michel Bord. Chivas
Regal, number two in premium Scotch
whiskies, is sponsoring La Ley, a well
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Seagram’s Gin has organized
the “Seagram’s Gin Live
Tour,” a musical tour
including 24 American cities.
13
[
R E G I O N
]
known Hispanic recording artist.
Martell also implemented marketing
programs for the African-American,
Asian and Hispanic communities relating to its “Rise Above” campaign.
“We want to develop relationships with consumers. After shows and events where our
brands have been highlighted, we mine the
names of all the people who were interested
in our products in order to communicate
with them directly.”
Through The Glenlivet Society, Pernod
Ricard USA has established an online
program offering Society members
the opportunity to order “tasting kits”
for the whole range of The Glenlivet
In the USA – customized label
for Chivas Regal 12 years old.
products. Outreach can also take the
form of invitations to evenings organized for the brands. These programs
create an interactive communication
with consumers.
Finally, another creative online feature
is the opportunity to personalize the
labels on The Glenlivet, Chivas Regal,
Wild Turkey Rare Breed, Bushmills,
and Jacob’s Creek Sparkling. “Everyone, whether a business or an individual, is able to have a unique bottle for
celebrations or special occasions. Companies can even include their logos.”
“The American market thus offers excellent
prospects of growth for the Group. With its
brands, its innovative marketing techniques
as well as its motivated teams, we are sure to
capture an important part of the future
growth,” concludes Michel Bord. ■
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The Glenlivet - No.1 Single Malt
in the United States
The Glenlivet is the number one single malt brand in the United States with sales
exceeding 200,000 cases (*) in 2003 and 27% of the market.
Introduced in America after the repeal of Prohibition by George Smith, the great grandson
of the founder of The Glenlivet, the growth of this single malt Scotch whisky hasn’t
stopped.
In the 1950's, Hollywood stars Yul Brynner and Robert Taylor insisted on finding it
in their hotel rooms. In 2003, the brand experienced growth of 8%, surpassing the growth
of the single malt category.
Today, The Glenlivet will be “relaunched”, underlining the determination of the Group
to develop the brand. The new launch will include new packaging, a new brand logo,
as well as new advertising. The objective is clear: become the most widely sold single
malt in the world.
In the United States, the new advertising campaign was created by Berlin Cameron
of Red Cell in New York, in collaboration with Young & Rubicam in Paris. This campaign,
showing different versions of the label of the bottle, demonstrates the unique expression
of the brand, its pioneer spirit and its qualities. Launched in September, the campaign
has appeared in several prestigious magazines, such as Forbes, Business Week, Esquire…
“This relaunch in the United States is a good example of the collaboration between
a brand owner, such as Chivas Brothers, and a distributor, such as Pernod Ricard USA.
Our discussions started from the positioning and continued through the finalization
of the campaign,” explained Neil Macdonald, Director Malt Whisky Brands, Chivas
Brothers.
(*) cases of 9 liters
Jameso
There’s something a
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[
SINCE
n
]
1988, JAMESON HAS
HAD YEAR ON YEAR GROWTH OF ALMOST 9% AND
REACHED A TOTAL SALES VOLUME OF 1.6 MILLION
CASES IN 2003 – UNINTERRUPTED GROWTH FOR OVER
16 YEARS.
TALKING ABOUT JAMESON'S SUCCESS ALSO INVOLVES
TALKING ABOUT IRELAND'S SUCCESS AND MORE PARTICULARLY THAT OF ITS CAPITAL CITY, DUBLIN.
DURING THE 1990S, WITH ITS ECONOMY IN FULL
BOOM, IRELAND WAS LABELLED - THE 'CELTIC TIGER’.
AT THE HEART OF THIS DEVELOPMENT IS THE CITY OF
DUBLIN. THE CITY HAS AN EXCITING MIX OF THE OLD
AND THE NEW, WITH ITS HISTORIC DISTRICTS AND
JOINING THE
GROUP
S T O R Y
IN
PORT AREAS THAT HAVE BEEN TRANSFORMED AND
MODERNISED; AND NOW,
DUBLIN IS TRULY
THE MOST EXCITING OF EUROPEAN CITIES.
ONE OF
▼
bout
S U C C E S S
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[
S U C C E S S
F
S T O R Y
]
An unequalled growth worldwide
ounded in Dublin by John Jameson in
1780, Jameson has also seen unequalled
growth worldwide – in fact it is the
fastest growing International whisk(e)y*.
What is so special about Jameson ?
customers may know Ireland, but they all
have an idea of the culture and values that
it represents.” Being of Irish origin today
implies both authenticity and conviviality. This can be seen today in the most
popular “trendy'” bars located in the
historic centre of Dublin.
This success has many facets. So what
is it that makes
Jameson such a
Jameson’s key
special product?
Peter O’Connell, International Sales
and Marketing Director,
and Philippe Savinel, Managing
Director, Irish Distillers.
Is it its Irish origin?
Distilled in Dublin up until 1975,
today it is produced in Midleton, County Cork.
“Jameson is obviously strongly established in Ireland.
But today it is consumed in all four corners of the earth, from
Australia to the USA, from Finland to
South Africa,” explains Peter O’Connell,
International Sales and Marketing
Director, Irish Distillers. “Not all of our
*Pernod Ricard 2003, Canadean 2003 International Whisk(e)y is
any unaged whisk(e)y selling 50,000 cases in five markets or more.
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Is it its triple
distillation?
Irish whiskeys are
usually the only
ones to be distilled three times
(Scotch whiskies
are normally only
distilled twice and
most Bourbons
only once). This
unique process
guarantees their
unique character.
As stated by that world renowned connoisseur of whiskey Michael Jackson,
“Irish whiskey was maybe the first of all,
and can certainly boast an impeccable pedigree.”
markets
are the USA, Ireland,
the United Kingdom,
France, Spain,
Travel Retail, Australia
and South Africa.
Is it its taste?
Jameson is known as an exceptionally
“smooth whiskey”. But other whisk(e)ys
are also smooth.
“What is so special about Jameson is most
likely a combination of all these things”,
2000
explains Peter O’Connell. Add this
to a
relaxed open style. The Jameson family
motto is “Sine Metu” (meaning “Without Fear” in Latin) and Jameson is a
whiskey that is confident and welcom1500
ing. “Such values are very contemporary
and we have based our stategy on them to
produce our new campaign ‘There’s something about Jameson’.”
Target: 2 million cases next year1000
9-litre cases (source: Irish Distillers)
2,000
1.6 million
(CAGR: +8.6%)
1,500
1,000
500
88
89
90
91
92
93
94
95
96
97
96
97
98
99
00
01
02
03
▼
“Jameson has in fact been a continual success
story ever since 1988. Today we want to
accelerate and expand this growth
dynamic.” Target: 2 million cases next
500
year, including accelerating the performance in the USA, which is now
Jameson’s largest market.
“Today we want to attract drinkers who
have a ‘young’ approach to life. Whether
they are 25 or 50, the important thing is0
their outlook on life.” Jameson wants to be
seen as a brand that is modern and
Jameson’s sales growth
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19
[
S U C C E S S
S T O R Y
]
relaxed, “a brand that doesn't expect people
to change their lifestyle, but which offers
them something… different.” An urban
brand, with its roots at the heart of
Dublin.
Showing off a new “vibrant” green
colour palette, the new campaign uses
the seal as a signature device and tries to
explain what is so special about Jameson. This campaign, starting at the end
of the year, is contemporary and will be
adapted in line with different markets
and cultures.
Jameson – Hot Brand and Fast Track Brand
in the USA
Jameson has grown strongly in the USA. It has been awarded Impact International’s
Hot Brand award for the third year in a row (this is awarded to brands selling more
than 200,000 cases and achieving double-figure growth) Jameson is the only Pernod
Ricard Spirits brand to have received this award in three consecutive years.
Jameson was also named a Fast Track Brand by the Adams Liquor Handbook in 2003.
How should I drink
my Jameson ?
This is the question that every new
whiskey drinker asks. Barry Crockett,
master distiller for Jameson, will always
reply by saying “as you like it!”
It is unusual for a premium whiskey like
Jameson to have none of the traditional
whisk(e)y rules applied on how
it is consumed, this has perhaps also
contributed to Jameson's phenomenal
global success.
This campaign has a single aim: to encourage you to try Jameson and taste
its… difference. “By highlighting our distinctiveness, we are not just targeting
whiskey drinkers, we are trying as far as
possible to communicate the message that
something is happening around our brand to
all our target spirits consumers,” concludes
Peter O’Connell.
“Jameson has a very exciting future on a
global scale,” explains Philippe Savinel,
Managing Director of Irish Distillers.
“Jameson has performed spectacularly well
in the USA and will continue to do so. The
brand is also showing very encouraging
growth in every single region of the world.
With 2 million cases, we are entering a new
league in international spirits.”
A new story for the leading Irish
whiskey. ■
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Jameson website in Spain.
Jameson, highest growth for whiskies
in Spain
Whisky is Spain's top category and represents a real growth opportunity for the
Group. Spain is in fact ranked third on the global wine & spirits market. A market
where “premium” imported brands are showing huge growth. 70% of consumption
takes place in cafés, hotels, restaurants, especially at night.
“In 2003, Jameson was the fastest growing international whisk(e)y,” explains Bruno
Rain, chief executive officer of Larios Pernod Ricard. “The brand's annual growth rate
has been 30% since it was launched. We intend to establish it here as a benchmark
in premium standard whiskies.”
First launched in 2000 on a test market in Valladolid then Madrid, this product is
available today across the whole peninsula and is among the priority brands of Larios
Pernod Ricard. Sales of Jameson in Spain this year will reach the symbolic threshold
of one million litres, just four years after it was launched !
“With Jameson, we have a very emotional relationship,” explains Bruno Rain. “We
started from scratch in 2000 and today Jameson is one of the benchmark whiskey
brands and Spain is already in fourth place for the brand, outside of Ireland.”
In June 2004, the whole Larios Pernod Ricard sales team went to Ireland on invitation
from the brand owner, Irish Distillers, to celebrate this success and make its
attachment to this brand even stronger.
The good results are without doubt the fruit of the many promotions produced
around the brand, not only in the outside of home channel, but also on the Internet,
with a new Jameson site launched recently in Spanish. Dublin's most emblematic
monuments steer surfers on the site.
Find it on www.jameson.es
[
I N N O V A T I O N
]
The Group’s anis spirits
New
concepts
for
leaders
NEW LOOKS FOR RICARD AND PASTIS 51 PACKAGING, DISTRIBUTION THROUGH OFF-TRADE OF
RICARD PRÊT-À-BOIRE AND “CREATEURS” BOTTLE, LAUNCHING OF A PASTIS 51 CITRON… THIS HAS
BEEN A YEAR OF INNOVATIONS FOR THE GROUP’S ANISEEDS.
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Pastis de Marseille in red are underlined by the signature of
Paul Ricard Créateur, and the vintage 1932 now appears in a
smile configuration. The silver collar indicates the Ricard
brand, engraved in the same silver tone.
A contemporary image
“For Pastis 51, the leader in the south-east of France and Marseilles
(source: IRI – Secodip), the object of our innovation efforts is threefold,” explains Pierre Coppéré, Chairman and CEO of
Pernod. “We want to differentiate ourselves from our competitors,
give more status to the brand, and accentuate the values of the
south.”
Thus, a new look was developed. As a reminder of the values
of the south of France which are dear to the brand, the label
▼
C
ompetitors for many years, Ricard and Pernod, the
two leaders are rivals in the field of innovation this
year. An additional way of vitalising the anis spirits
market, where Pernod Ricard has its roots.
“We want to play our leadership role by developing new concepts,”
explains Alain Chamla, Chairman and CEO of Ricard SA. By
innovating, Ricard intends to maintain its leading position in
spirits and anis spirits in France (source: Panel Distributeur).
Thus, Ricard modified its collar and label, created by Paul
Ricard in 1932. “Changing the look is always a delicate affair for
a product. Here, we wanted to preserve the personality of Ricard,
which distinguishes it from every other beverage,” explains Alain
Chamla. More refined and more modern, the new label keeps
the acanthus leaf, the symbol of the original label. The words
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[
Pastis 51 Citron
“In a mature market, it is necessary
to be constantly offering something
new,” explains Xavier Beysecker,
Marketing and International Director
of Pernod. “With Pastis 51 Citron,
we want to reach occasional
consumers of anis spirit who await
innovation in the category,
and, in particular, those who are not
consumers of 51. But we are also
targeting young adults, who have
been seduced by the flavour,
the novelty, and the originality
of the product in consumer tests.”
Pastis, mixed with a fruity, natural
lemon note, is lighter and more
accessible to women and young
adults.
“The name of the new product is
easily remembered due to the 51
brand, which should be a benchmark
for authenticity and quality,” explains
Xavier Beysecker.
Sold in a transparent, 70 cl bottle,
modern and refined, Pastis 51 Citron,
just as its older brother 51, is drunk
with one part pastis to five parts
of water. Launched in France
in October, it will soon be available
in Spain and Italy.
I N N O V A T I O N
]
uses a large amount of yellow, a sign of its solar side. The
number 51 is rounded: the 5 and the 1 are closer together,
and more coordinated than ever. The bottle now has two different labels: “Pastis 51” on the one hand, then “Pastis de
Marseille,” placing more emphasis on the origin of this
product, which is 100% made in Marseilles.
“We also want to be more seductive, and more widely targeting
women and young adults. The Pastis 51 Citron launch (see
insert) will contribute to realising that goal,” explains Pierre
Coppéré.
New campaigns
These innovations are accompanied by large media investments. A new advertising campaign for Ricard flourished on
the walls of France in June and November. With a new slogan: “Ricard, under the sign of the sun” (Ricard, sous le signe
du soleil), this campaign plunges us into a warm universe, that
of Provence, where the brand was born. “Warmth,” “Vitality,”
“Elegance,” “Freshness,” and “Spontaneity” are the key
words of the campaign, which presents the sun, stylised
according to the inspiration of Garouste & Bonetti.
For Pastis 51, the values of the south are relayed by the campaign “Ne perdez pas le sud”, started in 2003. Placed beneath
the sign of humour with this out-of-context expression, three
visuals on a background of sand, water, or rock, a bottle of 51
transforms into a compass pointing towards the south.
“To affirm our roots, we also seek to work with artists connected with
the south,” explains Pierre Coppéré, Chairman and CEO of
Pernod. “After the promotional package created by JeanJacques Surian, we organised a competition with the Ecole
des Beaux Arts of Marseilles in order to create a limited-edition Pastis 51 bottle.” The winning project, created by Félix
Richard, student at the Ecole des Beaux Arts in Marseilles, is
titled “Perfume of festive colours” (Parfum de couleurs festives).
Off-trade launch of Ricard ready-to-drink
Created in 2002 and launched first in cafés, hotels and
restaurants, Ricard ready-to-drink has been available
through off-trade channel since June. The objective is
clear: to modernise the anis spirit market, by diversifying the times of consumption and to attract new consumers, who consume anis spirit more occasionally.
“With ready-to-drink Ricard, it’s the first time that a
product under the Ricard name will be found in the refrigerator,” explains Alain Chamla. Refreshing and light,
ready-to-drink Ricard is only 7.5 per cent alcohol.
The 25 cl bottles are sold in packs of 3 and 6 bottles.
“It’s a modern, practical way to enjoy Ricard by the bottle,”
concludes Alain Chamla.
With new looks and new advertising campaigns, the
mass marketing of Ricard ready-to-drink and a bottle
of Ricard Créateurs (see insert), as well as the launching of
Pastis 51 Citron, the Group intends to guarantee itself a place
at the top of the world anis spirit market. ■
Pernod, the most
international
anis spirit,
is 200 years old
Pernod will celebrate its bicentennial
in 2005. Various special offers will
promote Pernod in France and the rest
of the world surrounding the oldest,
most international French anis spirit
brand.
Distributed in more than 100 countries,
Pernod is a stable, global-level brand.
Since 1805, the unique flavour of this
distilled anis spirit comes from the skilful
mixture of cracked anis essences
and aromatic plants, which remain
a closely guarded secret. It is easily
mixed with cola or orange juice
for those who wish to enjoy it as a long
drink, as is the case in the United
Kingdom and Germany.
New “Créateurs”
bottle for Ricard
Offering everyone access
to a product of contemporary creation
– that is Ricard’s objective with
the “Créateurs” bottle. This product
is part of a great tradition of support
for contemporary art. Created
by designers Garouste & Bonetti
for the year 2000, it came only in
a limited-edition porcelain bottle.
Its aesthetic quality and its colour
are now presented in glass, which
should appeal to women. On sale
in major outlets, it is an “original”
gift at an affordable price.
[
I N N O V A T I O N
]
Anis spirits of the world
In what parts of the world are anis spirits consumed?
In 2003, close to 33 million cases* of anis spirit liquors were consumed.
France
Spain
Turkey
41.5%
18.8%
7.6%
*9-litre cases
45%
29%
8.3%
5.6%
2.8%
9.3%
Pastis
Raki/Arak
Ouzo
Sambuca
Pacharan
Other
source: IWSR 2003
Ricard, No. 1 in Belgium and Luxembourg
With a growth of +85% in 7 years, Ricard is the number-one
brand of spirits in Belgium and the Grand Duchy
of Luxembourg.
“In 1996, the Ricard brand sold 1,050,000 litres (120,000 cases)
on the Belgian and Luxembourg markets. In 2003, the brand
reached 1,935,000 litres (215,000 cases)! Due to its importance,
the Ricard brand has a very special place in our portfolio”,
explains Philippe Meert, Chairman and CEO of Pernod Ricard
Belgium. The Group has developed unique and original
positioning on the Belgian market; in the land of rain
and overcast skies, Ricard’s slogan is “Ricard… Let the sunshine
in!” This theme is included in all promotional activities,
including television and cinema. “The sun of Ricard, which
is part of every brand communication, has managed
to become a veritable icon of this product”, explains Philippe
Meert. The driving force behind the brand is the intensive
presence of dedicated promoters in bars, the famous
“Messieurs Ricard”, who ensure the introduction
of the product, advise on the proper way to serve it,
and promote the brand at the point of sale.
“The main target time of consumption is the noon and evening aperitifs, times at which
the brand is primarily in competition with beer. With the backing of Ricard SA, we
are carrying out numerous activities and tests to broaden its consumption, in particular
in nightclubs, or to encourage mixing it with other products… Our challenge is to develop
consumption within the Dutch-speaking area of the country, and outside the summertime”,
concludes Philippe Meert.
Sambuca
Ramazzotti
No. 1 in Canada
Sambuca Ramazzotti is
the number one Sambuca
in Canada, with a 55% market
share. Sambuca Ramazzotti is
particularly popular in Quebec
and Ontario. The end-of-year
celebration season is very
important for sales in Canada:
the two weeks before
Christmas account for close
to 20% of sales of Sambuca
Ramazzotti. In order
to promote various ways
of consuming sambuca, Italian
coffee boxes , attached to
bottles of Sambuca Ramazzotti,
have suggested a caffè Milano
(coffee and sambuca) recipe
for this autumn, as the
temperature is getting cooler
in Canada.
• Zoco, top pacharan in Spain
• Ouzo Mini, No. 1 in Greece
source: IWSR 2003
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[
V I S I T O R
C E N T R E S
Discovering
and its exceptional
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AT THE GATES OF THE OLD CITY OF COGNAC, AT GÂTEBOURSE, THE CENTRE IS ADJACENT TO
THE MARTELL FACILITIES.
Caroline Ricard-Frugier. “At Martell, we
wanted to maintain our authenticity, our
savoir-faire, our tradition. What makes
us special is that we don’t consider our visitors to be mere spectators, but rather true
participants in the story told to them.”
Thus, in groups of 20 to 25 people,
the visitors maintain a running dialogue
throughout the tour with their guide.
“This provides a favourable setting for passing on and confirming Martell’s and Pernod
Ricard’s values of conviviality and simplicity,” notes Caroline Ricard-Frugier.
“Our concern is to explain how cognac is
made, from the vineyard to the bottling
process, in as educational a fashion as
▼
“W
elcome to the oldest
of the major cognac
houses!” With these
words, we are welcomed by Caroline
Ricard-Frugier, Director of the
Martell Visitor Centre.
“There are many places you can visit connected with cognac in the region,” explains
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possible, by dividing the visit into levels, and
showing the importance of the work, care,
and time necessary to make a quality
product.”
A Unique Product
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Chanteloup,
A Norman residence at the heart of the Cognaçais
Located in Cherves Richemont, a few kilometres from Cognac, the Chanteloup château
welcomes the hosts of the Martell brand: consumers, salesforce, or journalists from
across the world are received for lunch, dinner, or to spend the night in the style
of a five-star hotel, an opportunity to become personally acquainted with the Martell
“art de vivre.” The origins of this château date back to the 16th Century. In 1930,
Maurice Firino-Martell transformed it completely to give it its current Norman style,
out of love for his wife, who felt homesick for her native Normandy. Thus, this
transformation is the result of a love story.
Martell Visitor Centre
Place Edouard-Martell / 16101 Cognac / Tel. : + 33 5 45 36 34 87
Open from 1 April to 31 October. Monday to Friday, 9:30 – 17:00.
Open Saturdays and Sundays, 11:00 – 17:00.
Admission: EUR 4
Private inside parking is available for visitors.
▼
The visit begins with the house of Jean
Martell, the founder of the maison
Martell. “It is the first house in Gâtebourse, and the entire company was developed around it.”
This house, now part of the supplementary inventory of buildings in France,
includes a kitchen, a room typical of the
Charente area, and a small wine cellar.
The archives dating from the foundation of Martell in 1715 are stored on the
first floor. Following the tour, visitors
arrive at reconstructed vineyards.
“It is very useful in order to show what
makes Martell a unique product.” The visitors discover the four finest growth
areas of the AOC (with a guarantee of
origin): Borderies (the smallest of the
AOC area, and predominant in Martell
cognac), Petite Champagne, Grande
Champagne, and Fins Bois.
“When they leave, the visitors should realise
that our region is unique in the world, and
that it is absolutely impossible to make
an identical cognac anywhere but here” continues Caroline Ricard-Frugier. Then, a
reconstructed distillery shows the special features of double distillation of
Charente eau-de-vie, the origin of
cognac. A storehouse in which the
products age has also been made available for viewing. There, visitors can see
the fine grained “Tronçais forest type”
oak casks that give Martell its particular
typicity. A new section, Blending of the
eaux-de-vie, has just been opened to visitors, and shows the role of the cellar
master.
“Finally, at the end of the visit, we reconstructed a “gabarre” from the 19th Century,
the Juste Edouard. The barge transported the
casks of cognac to Rochefort on the coast before
leaving for Great Britain, Scandinavia…This element reinforces the historical
guarantee and the image of authenticity of
the brand.”
www.martell.com/visit
[
V I S I T O R
C E N T R E S
]
Communicating what makes Martell a unique product.
Exceptional Quality
The visit lasts about one hour, and concludes with a tasting in the Martell boutique. This session allows visitors to discover the various ways of enjoying
cognac: in cocktails, or in long drinks
for the VS* or VSOP*, and pure for the
superior quality cognacs such as Cordon Bleu and XO*…The Martell boutique offers the entire range of Martell
cognacs, as well as various objects or
books so visitors can learn more about
cognac and its region of origin.
“The circuit is a good medium for us to communicate what makes Martell a unique
product; it is a good educational tool, no
matter what sort of public we are receiving
– tourists, customers, distributors, or the
press,” explains Eric Benoist, Marketing
Director of Martell & Co. “Through the
visits we want them to acquire a good
understanding of our cognacs, and to contribute to the reinforcement of Martell’s
image.”
“Martell is, indeed, a name associated with
luxury, and its price may seem high to some
people. When they leave, we hope our visitors are aware of this notion of quality and
prestige surrounding our products.”
■
Key figures
■ The Martell Visitor Centre receives
more than 30,000
visitors a year, including:
■
■
■
50% French
40% British
9% Belgians, Dutch,
Luxembourgians
and Germans
* V.S. (Very Special): the youngest eau-de-vie is at least two years
old, counting from 1 April of the year following the grape harvest (end of the distillation period).
V.S.O.P. (Very Superior Old Pale): the age of the youngest
eau-de-vie is at least four years.
X.O, Hors d'âge... the youngest eau-de-vie is at least more than
six years old.
(Source: Bureau National Interprofessionnel du Cognac)
To promote visits, various
partnerships have been created
with local hotels.
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[
Q U A L I T Y
-
S A F E T Y
-
E N V I R O N M E N T
]
Maintaining
the Group’s
commitment
“T
he Group must be irreproachable.” With these
words, Patrick Ricard
states the importance of the relationship of trust between consumers and
Pernod Ricard. Buying a product of the
Group must be synonymous with quality and respect for the environment in
its production. It is so much more
important for Pernod Ricard to produce high-end products, such as Martell
cognacs or Chivas Regal, The Glenlivet, or Royal Salute Scotch Whiskies.
This concern takes on various forms:
product quality control, of course, but
also employee safety, environmental
impact, increased competitiveness and
respect for quality standards.
“Without fail we must be able to maintain
the commitments made by our marketing
and communication teams concerning our
products”, explains Jean-Marc Roué,
pernod Ricard Quality-Safety-Environment Director.
As regards the principle of decentralisation, the key organisational principle of
the Group, the Pernod Ricard Quality
Safety Environment team encourages
every branch to establish processes, to
train and manage simultaneously the
expectations of consumers, the local
authorities, the people living close to
the production centres, or shareholders.
Their presence, at the centre of the
mechanism, is an essential element of
Pernod Ricard’s commitment.
A commitment that takes very specific
forms … ■
Environment
A pollution-free, reject-free
plant in India
At the Nasik site, in the west of India, Pernod Ricard produces various spirits
for the local market, such as Blenders Pride, Royal Stag, and Imperial Blue whisky. “The
distillery is ‘pollution-free, reject-free.’ All effluents are treated on site”, explains Nitin
Gathe, director of the plant. “It is unique in the country.” To obtain this result,
the most modern technologies were used, together with strict control and monitoring
systems. Thus, the water is recycled and used for irrigation on the site of the distillery.
All employees have been trained in these techniques of sustainable development.
This performance is recognised throughout the entire country. Last September,
the distillery obtained ISO 9001:2000, OHSAS 18001:1999, ISO 14001:1999, and HACCP
certification.
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Test carried out
in Lawrenceburg
(Pernod Ricard
USA).
Pernod Ricard
Research Centre
Assuring
constant
quality
Standards:
operating instructions
At the heart of the policy of sustainable development
are standards ISO* 9001, 14001, or OHSAS* 18001.
These internationally recognised standards are used
by all subsidiaries of Pernod Ricard to establish their
quality-assurance, safety and environmental systems.
The Group’s subsidiaries have these systems certified,
a process which consists of regular monitoring by an
external entity and of complete observation of the
standards.
If you appreciate one whisk(e)y,
one cognac, or one pastis more
than another, this is without a doubt
because you are attached to its
flavour, its aromas, or its colour,
which makes it different, and unique
for you. Thus, it is vital to guarantee
that our brands maintain their
characteristics over time. To this end,
there is close collaboration between
the Pernod Ricard Research Centre
and the Group’s subsidiaries.
“We must make sure that our loyal
consumers are never disappointed”,
explains Marie-Hélène GaudetSimchowitz, head of the formulation
and sensory analysis service.
“To that end, the role of the Research
Centre is twofold: on the one hand,
we evaluate the constancy
of the sensory profile twice a year for
the Group’s 26 worldwide best-selling
brands, and, on the other, we train
tasters in the subsidiaries of the
Group to improve quality control
of our products for every brand
owner.” This concern also gives rise
to the pursuit of research, in particular
to stabilise the ingredients.
* ISO: International Standards Organisation
OHSAS: Occupation Health and Safety Assessment Series
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[
N E W S
]
New Zealand
Australia
Acquisition
Launch of
of a New Zealand Jacob's Creek
wine company
Shiraz Rosé
Pernod Ricard is pursuing its development in the New
World wine sector, and has acquired the Framingham
company in New Zealand. Until that acquisition, the Group
had not owned any New Zealand wines.
Located on the southern island of New Zealand,
300 kilometres from the city of Christchurch, Framingham
has a modern winemaking domain in the heart of the
Wairau Valley in Marlborough.
The company, created in 1991, produces 30,000 nine-litre
cases of top-of-the-range Framingham brand Marlborough
and Tylers Stream wine.
The different types of wine cultivated there are Sauvignon
Blanc, Riesling, Pinot Noir, Pinot Grigio, Gewürztraminer
and Chardonnay.
The integration of Framingham wine into the Pernod
Ricard portfolio will allow for the development of their
sales on the large international markets.
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A Jacob’s Creek Shiraz Rosé was launched
in the United Kingdom, the brand’s first
market. In the mass market for wines,
the rosé segment is the most rapidly
growing area in the United Kingdom.
This introduction into the portfolio
of Jacob’s Creek aims to attract new
consumers and sustain growth.
A poster campaign in the streets and
in certain magazines supported the launch.
Jacob’s Creek Shiraz Rosé, now also
available in Australia, has already won
its first silver medal at the Queensland
Wine Show.
New websites:
www.havana-club.com
www.jameson.es
Disposals
Pernod Ricard concludes the sale
of Orangina
Pernod Ricard has sold its remaining interest in the Orangina soft drinks
business operated by its subsidiary, CFPO, which is conducted in the United
Kingdom, Eastern Europe, Africa/Middle East, South America and Asia,
to Cadbury Schweppes for an amount of around EUR 31 M.
This transaction completes the disposal process, in relation to Pernod Ricard’s
worldwide business interest in Orangina, which commenced in 2001.
Pernod Ricard Nederland B.V.
sells Koninklijke Cooymans B.V.
to Distilleerderij M. Dirkzwager B.V.
Pernod Ricard Nederland B.V. has sold its Dutch locally produced brands
such as Legner (Jenever), Millwood, Surfer’s and Koffiekaatje (cream/liqueurs),
advocaat and fruit wines brands to Distilleerderij M.Dirkzwager B.V..
Prize
Boursoscan Prize for
www.pernod-ricard.com
The corporate site of Pernod Ricard
was named the best web site in
the “Content” category by a panel
of web-surfing French shareholders made
up of Boursorama* and TLB.
The shareholders recognised that the site
gave a positive image of the Group,
its key strengths being the fact that
the site is constantly updated the clarity
of information and the section headings.
More generally, this study also
demonstrated that individual shareholders
in France use the Internet more and more
as a source of information.
* Boursorama is the first stock market information site
in France, and TLB specialises, among other things,
in the analysis of individual shareholder behaviour.
Survey conducted with 6,000 web surfers from 10 March
to 16 April 2004.
Entreprendre, The magazine for Pernod Ricard shareholders
12, place des États-Unis, 75116, Paris - Tel.: + 33 1 41 00 41 00 / [email protected]
Publication Director: Francisco de la Vega / Edition Officer: Nicolas Petteau / Design & Production: l’iroquois,
8, cité d’Hauteville, 75010 Paris / Photographic credits : Studio photo Pernod Ricard : Daniel Dewalle,
Marc-André Desanges. ISSN : 0757-3626
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