Article on Mr. Alexandre Ricard's conference and Q&A session given at Harvard Business School on Sept.4th,2018

1. New York City, September 14th, 2018
‘Make a new friend everyday’as Mr. Paul Ricard wouldsay. This motto voicedby PaulRicard was the
inspiration of the new tagline of the world’s second largest wines & spirits group, Pernod Ricard
‘Creatorsof Convivialité’.AsImetMr.AlexandreRicard,Chairman&CEOof PernodRicardatHarvard
Business School on September 4th, 2018, his welcoming attitude and his convivialspirit towards the
MBA students present at the conference reminded me of the true convivial values of the group’s
culture that Ihad the chance to experience during my six month internship at Martell Mumm Perrier-
Jouet.
Alexandre Ricard at Harvard Business School, Sept 4th.2018
Mr. Alexandre Ricard led a very intimate, friendly and interesting Q & A session in a relaxed
atmosphere as financial results of the FY 2017/2018 had just been published a week earlier. The
group announced an impressive 6% organic growth. Much speculation surrounds this report, as
current forecasts of future profit growth are estimated to reach 5% to 7% for the year ending June
30th, 2019. Will Pernod Ricard become the largest wines & spirits group in the world? It is surely on
the way to become the industry’s leader. However, as Mr. Ricard explained : ‘ To become N.1 in the
world is is not an ambition nor an objective , it is the consequence of the vision statement of being
‘Createurs de Convivialite’ .To be a leader is to become part of every moment of celebration of
consumers. When this vision is brought to reality and associated to togetherness around the world,
then PernodRicard willbea leader’. Thisvision of conviviality hassurely resonated withmy personal
experience with the group, it is not just a company you work for,it is a professional family in which
you can personally grow, develop your creative spirit and share your passion about unique brands
that bring people together. It is a Maison des Marques that allows consumers to be part of a
community and share experiences.

2. Pernod Ricard is the only CAC 40 group that offers a live chat and Q&A sessions with its employees.
This is how it works at Pernod Ricard: conviviality is key. Alexandre Ricard doesn’t need an office
with a view at the Paris Headquarters, Place des Etats-Unis. He has an open space office and often
interacts with employees, consumers through the corporation’s own communication tool: Chatter.
He also stresses the importance to go on the field. As he mentioned, Mr. Ricard often discusses with
bartenders, mixologists and clients in bars that he visits throughout his travels. It is one of the best
ways to be close with consumers, to identify trends early and accordingly innovate. Indeed,
innovation is key to the group: its brand portfoliois mainly composed of spirits that were founded a
long time ago but one of the key successes of the group is to leverage technology and incorporate
changes such as digitalization, IoT and AI to create new experiences for consumers: Mumm’s first
champagne connected bottle or Mumm’s Grand Cordon Stellar champagne to enjoy champagne in
zero gravity, Malibu smart bottle or the world’s 1st connected cocktail library among others.
Pernod Ricard strongly embodies a start-upmindset as well as an entrepreneurialspirit.Most
of the brands of the group’s portfolio were created by an entrepreneur: Jean Martell for the
Cognac Martell in 1715, John Jameson for the Jameson Whiskey or Paul Ricard with the
famous pastis Ricard in 1932, among many others.This spirit has remained intact throughout
the group as people and collaborators are empowered through the decentralized model of
the group. Pernod Ricard is divided between brand companies that overlook production and
set overall strategy (the Absolut Company, Havana Club International, Martell Mumm
Perrier-Jouet, Irish Distillers, Chivas Brothers and Pernod Ricard Winemakers) and Market
Companies (Pernod Ricard Asia, Pernod Ricard North America, Pernod SA, Pernod Ricard
Global Travel Retail, Pernod Ricard EMEA/LATAM) which are linked to regions, activate
brands locally and are in charge of distribution. As I interned as an Assistant Brand Manager
for Martell Brand Strategy US & China, I was working on projects for the China and the US,
the two biggest markets of the brand. As an intern, the ability to contribute on product
innovations suchas Martell Blue Swift or to helpcreate a new limited edition forChinese New
Year 2018 made me realize how the working culture is within the group. Managers empower
their peers and everyone works as a team to develop the best products while focusing on
customer’s needs. Ideas are always welcomed, talent development and training is key in all
the departments and the concept of test & learn is promoted. Mr. Ricard stressed how
important it is to not have a silo approach to projects and to rather work transversally in a
company as well as to take risks.
Finally, Pernod Ricard is currently building its growth through three growth drivers:
1) Organic growth, that is internal growth
2) External growth through transformational deals such as when the group sealed a €5.6bn
deal to buy the maker of Absolut Vodka, Swedish state-owned, Vin & Spirit.
3) Bold-on acquisitions such as the signing of the agreement for the acquisition of a majority
share of the dry-gin German brand Monkey 47 in 2016 or the acquired stakes in West
Virginia craft whiskey Smooth Ambler Spirits Co. Those brands are ‘incubated’ so as
to be built as brands such as Jameson or Havana Club.
When Pernod Ricard acquires a brand, the group makes sure to keep the culture and to let
the former management team to continue to steer the vision of the spirit. When the group

3. acquired a majority stake in Del Maguey Single Village Mezcal,a Mexican-made spirit, it made
sure that all operations of Del Maguey remained unchanged while providing support and
access to its extensive distribution network.
Pernod Ricard’s strategy, as Alexandre Ricard confirmed is to keep the entrepreneurial spirit
and to stay true to the vision and identity of a brand when it partners with smaller brands as
founders and the management team can propel the vision of the brand. PernodRicardUSAalso
created a new incubation division called ‘New Brand Ventures’ which aims at handling new brands
to help them in their young cycle and turn them into future growth brands.
The group adopted a strong consumer-centric approach and always gets insights from
consumers. This is one of the key factor success of the group as it manages to identify the
different moments of consumption:premium socializing and luxury (Martell),nightout (high
energy late night party are focused on Champagne such as Mumm, Absolut Vodka or Tequila),
get together, meal and aperitif occasion (eg: in France, Pastis 51, Ricard and Lillet are
strongly activated for l’Apero).
PernodRicard is a group that stands forstrong values, is responsible and committed to sustainability
and talent management. It is a group that embraces change and leverages technology (digitalization,
AI…) in order to bring the best products and experience to consumers all over the world.Each of the
brands owned by Pernod Ricard represents a moment of celebration and the vision that the brands
are associated with ‘togetherness’ and ‘Createurs de Convivialite’
As Mr. Alexandre Ricard mentioned, Pernod Ricard is all about sharing, conviviality and
togetherness. Pernod Ricard brings people together, transcends borders: so ‘Make a New Friend
Everyday’.