Pernod Ricard (RI) Investor Update summary

Revenue growth management and pricing strategy

• Significant reset of pricing strategies over the past year, focusing on competitive positioning and agility in response to market dynamics.

• Enhanced revenue growth management capabilities with dedicated teams, advanced tools, and data-driven processes for sharper decision-making.

• Strategic focus on promotional intensity, ensuring spend is phased and targeted for key brands.

• Rev-Up RGM system now covers the full portfolio, providing detailed, data-driven insights.

Portfolio prioritization and wholesaler realignment

• Comprehensive review and realignment of wholesaler partnerships, prioritizing performance and resource allocation by state.

• Mainline and explode brands now account for 80% of net sales, with clear focus and resource dedication.

• Enhanced clarity on KPIs and commercial requirements, fostering stronger collaboration and engagement with wholesalers.

• Final stages of new wholesaler contracts, with positive feedback on portfolio prioritization and support.

Brand momentum and innovation

• Volume and value gaps to market have narrowed significantly, indicating positive momentum.

• Strong plans and innovation initiatives, including new sponsorships (e.g., Jameson as MLS whiskey sponsor) and targeted brand activations.

• Jameson recovery driven by increased investment in awareness, advocacy, and portfolio clarity, with household penetration still offering growth headroom.

• RTDs leveraged for recruitment, with partnerships like Absolut and Ocean Spray expanding reach.