Battleground #3: Funding the journey
FOR SUSTAINABLE AND DIVERSIFIED GROWTH
As conditions in the Wine & Spirits sector improve worldwide, the Group has set its sights on generating sustainable, diversified growth. To do so, we have made it a key priority to continuously work towards optimising our performance – a goal formalised with the launch of our Operational Excellence Plan in 2016 that targeted cost savings of 200 million euros, accompanied by a further 200 million euros in cash savings. Buying smarter, making use of programmatic media buying and working ever more efficiently, to name but a few of the measures put in place, have strongly contributed to building this firm financial footing.
Barely two years after the Plan’s implementation, we are well on the way to hitting our targets. We have already achieved approximately two-thirds of both our cost and cash savings, with approximately half of the cost savings reinvested behind our Brands.
DRINKS & CO: A BRAND IN SYNC WITH OUR CUSTOMERS
To carve out a key position for Pernod Ricard in the fast-growing e-commerce sector, the Group launched our very own digital brand, Drinks & Co. By providing a platform that brings together all of our Brands in one location, our aspiration is to not only boost Internet sales, but also to create a space in which our customers can explore the wide world of "convivialité".
Two years post launch, the Brand is present in more than 25 countries via local Pernod Ricard private sale sites and already has a steadily growing community of Facebook and Instagram fans.
Drinks & Co’s success is proof of the enterprising spirit of our people. Created entirely in house without external agency support, it has been the ultimate entrepreneurial adventure. Julie Laurens, Global Head of e-commerce, sums up the ambition that inspired its creation: “We wanted to do something radically different, while at the same time making things simpler and more efficient for everyone, and in doing so become the leader in the category.”
The Brand’s name is a nod to two fundamental elements of Pernod Ricard’s DNA. The “Co” refers both to "convivialité", that sense of togetherness encapsulated in the Pernod Ricard signature, and to community, because members of our private sale sites receive exclusive community-only offers.
To ensure that the Drinks & Co websites will continue to attract and retain an ever-increasing number of consumer, editorial content will continue to be expanded and enriched. As Julie explains, “We’ll be publishing the stories behind our Brands and products as well as more instructive information on different aspects of our business that interest consumers, such as the origins of the term ‘single malt.’ While we believe our products speak for themselves, we want to create a separate world for each Brand and, looking further ahead, deliver one-of-a-kind experiences that customers can enjoy wherever they are, no matter the occasion.” The gradual, organic introduction of new ideas and services will continue to transform the website into a fully-fledged brand experience.
The Brand maintains a resolutely local focus that keeps it agile enough to accommodate country-specific cultures. In Argentina, for instance, a Drinks & Co House provides a consumer experience that spans offline and online channels to bring people together. It perfectly illustrates the Brand’s signature “Good things come together” and its determination to share good times with its consumers.
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Excessive drinking is dangerous for the health; alcoholic beverages should be consumed with moderation.
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