Major trends transforming our sector
The omnipresence of 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.
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 dehumanised, overly superficial and impersonal and the rise of artisanal brands.
Action: Promotion of the traditional nature and origins of our Brands, such as Jameson, Martell and Absolut, produced using recipes going back more than 100 years; Acquisition of artisanal brands, such as Monkey 47 dry gin and Del Maguey mezcal.
(1) 2017 Craft Spirits Data Project completed by the American Craft Spirits Association (ACSA), Park Street, and the IWSR.
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: Launch of Ricard Plantes Fraîches, made from anise grown in Haute-Provence; Launch of a low-alcohol wine by Jacob’s Creek and the low-alcohol Korean whisky Imperial 35; Promotion of responsible consumption amongst young people through our Responsible Party project.
(2) Nielsen Global Health & Wellness Report 2015.
Opportunities: Having fun, going off the beaten path and being creative! Playing on traditional blends of alcohols, encouraging consumers to discover new flavours and offering new experiences.
Key points: Reconsidering traditional production methods as well as the cost and pace of innovations.
Actions: Launch of Jameson Caskmates whiskey, aged in Irish craft beer-seasoned barrels; Launch of Beefeater Pink gin in the UK.
(3) The Pernod Ricard Market View, based on IWSR.
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 beverages adapted to drink at home, such as Absolut Mixt or the Espresso Martini Pack; Launch of Drinks & Co, offering home delivery.
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: Creation of the Institut Océanographique Paul Ricard, specialising in marine biology research, in 1966; Each year, Chivas Venture distributes £1 million to start-ups seeking to address social or environmental issues5.
(5) Chivas Venture (6) Mintel
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 exclusively on male consumers or a stereotyped segmentation of our offering or communications.
Actions: Establishment of the Better Balance initiative, which was awarded the Leadership in Gender and Cultural Balance prize; Promotion of brands such as Jacob’s Creek or Campo Viejo, Lillet or Ballantine’s Brasil.
(7) "The Third Billion", PwC
Excessive drinking is dangerous for the health; alcoholic beverages should be consumed with moderation.
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