Major trends transforming our sector

The omnipresence of the new technologies in our daily lives has disrupted the wine & spirits industry. Characterised by moral and ethical awareness, millennials are no longer attached to a single brand. Instead, they choose from a range of brands depending on the moment of conviviality. To better understand these cultural changes and the needs of consumers, Pernod Ricard has identified six major trends.

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major trends

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Six major trends

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NOVEL EXPERIENCES
NOVEL EXPERIENCES

Consumers are looking for novelty and entertainment. They want to be surprised and step out of their comfort zone while maintaining certain points of reference. 

$80bn

Forecasted Immersive Augmented Reality and Virtual Reality market size by 20251

(1) Source: Goldman Sachs

Opportunities

Developing products from ingredients of the highest quality – whether natural, organic, vegan or gluten-free – but also low-alcohol or non-alcoholic beverages.

Key points

The negative perception of ‘industrial’ products, the lack of transparency on ingredients used or the absence of natural ingredients. Rejection and reduction of alcohol consumption by some consumers.

Actions

The success of Ricard’s ‘Plantes Fraîches’ (Fresh Plants) recipe, made from anise grown in Haute-Provence, France.
The launch of Absolut Juice, a new lower-alcohol spirit made from natural ingredients.
The UK launch of the non-alcoholic gin Ceder’s Alt Gin.

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HEALTH AND WELLNESS
HEALTH AND WELLNESS

In the face of environmental and health crises, consumers are looking for healthier, balanced and modest ways of consumption. 

80%

of global consumers believe food can be as effective as medicine in maintaining overall health2

(2) Source: Stylus. 

Opportunities

Developing products from ingredients of the highest quality – whether natural, organic, vegan or gluten-free – but also low-alcohol or non-alcoholic beverages.

Key points

The negative perception of ‘industrial’ products, the lack of transparency on ingredients used or the absence of natural ingredients. Rejection and reduction of alcohol consumption by some consumers.

Actions

The success of Ricard’s ‘Plantes Fraîches’ (Fresh Plants) recipe, made from anise grown in Haute-Provence, France.
The launch of Absolut Juice, a new lower-alcohol spirit made from natural ingredients.
The UK launch of the non-alcoholic gin Ceder’s Alt Gin.

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HUMAN AUTHENTICITY
HUMAN AUTHENTICITY

In search of transparency and authenticity, consumers are becoming more interested in production methods and ingredients used. They prefer beverages developed according to traditional and responsible practices. 

 

88%

of global drinkers pay special attention to on-package information that allows you to see where it was made3

(3) Source: Canadean. 

Opportunities

Showing transparency by explaining how our products are made, while sharing information about our history, terroirs and the expertise of our employees.

Key points

The perception of global brands as being dehumanised, overly superficial and impersonal and the rise of artisanal brands.

Actions

The Ruavieja campaign #WeHaveToSeeMoreOfEachOther highlighted the excess of screen-time in today’s society to the detriment of social interaction, notably with family and friends.
Adding the new Red Spot whiskey to the Mitchell & Son’s range of spot whiskies – whose name evokes the Mitchell family tradition of marking barrels with coloured spots.

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ON-THE-GO CONSUMPTION
ON-THE-GO CONSUMPTION

For economic, safety or simply comfort reasons, going out is no longer a preferred option for many consumers. The restaurant is gradually moving to their home, and the bar is following the same direction. This trend has been boosted by the emergence of delivery apps. 

 

$ 83bn

Market size of food delivery industry4 

(4) Source: McKinsey. 

Opportunities

Offering new beverages that are already prepared and ready to drink in new easily transported formats.

Key points

The disruption of traditional distribution channels and consumer habits in favour of ready-to-consume products.

Actions

Launch of Kahlúa Espresso Martini RTD, a new ready-to-drink product that facilitates enjoying quality cocktails at home.
Launch of Jacob’s Creek Cool Harvest slim line, wine available in a can.

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RESPONSIBLE CONSUMPTION
RESPONSIBLE CONSUMPTION

Today, consumers are looking for brands that are responsible and respectful of the environment and the communities in which they originated. 

 

75%

of worldwide consumers believe companies have an ethical obligation to avoid harming the environment2

(2) Source: Stylus. 

Opportunities

Strengthening the S&R policy – which is already firmly rooted in the Group’s DNA, promoting sustainable production processes and packaging, and supporting the social and cultural communities around us. Continuing our ethical and responsible commitment with our business partners (customers and suppliers).

Key points

The perception that large companies have opaque policies with a short-term vision focused on profit without trying to create long-term value for everyone.

Actions

Altos collaborated with the Huichol community in Mexico to produce special-edition bottles in support of local artisans.
Launch of the Green Hustle, a new initiative by Absolut in partnership with Trash Tiki, with the goal of reducing waste in bars.

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FEMININE IDENTITY
FEMININE IDENTITY

Around the world, the place of women is changing: their purchasing power is increasing and societies are moving towards greater gender equality. 

 

76%

of women say there’s never been a better time to be female2 

(2) Source: Stylus. 

Opportunities

Encourage the promotion of unisex brands without gender biases, promote gender equality and meet the expectations of our consumers who are more open to new choices and brands.

Key points

A strategy focused on male consumers or a stereotyped segmentation of our offering or communications.

Actions

The Glenlivet celebrated Mother’s Day with American actress, DJ and radio host La La Anthony
Launch of Les Ateliers Lillet, designed for women who desire to discover more about the brand while exploring their own personal passions with different artists and creators.

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DISCOVER OUR INTEGRATED ANNUAL REPORT FY19

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© Pernod Ricard 2020