Pernod Ricard (RI) Investor Update summary

Pricing and revenue growth management

• Significant pricing strategy reset over the past year, focusing on competitive positioning and agile promotional tactics.

• Expanded and resourced revenue growth management team, leveraging advanced tools and data-driven processes for timely market decisions.

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

• Promotional spend is more targeted, with careful phasing and analysis to maximize impact.

• Industry-wide caution on pricing due to consumer pressure, with focus on value and promotional depth rather than broad price increases.

Portfolio and wholesaler strategy

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

• Portfolio prioritization centers on six power brands and four 'explode' brands, representing 80% of net sales.

• Clear KPIs and commercial requirements established for wholesalers, fostering collaboration and clarity on success metrics.

• Enhanced engagement and support from wholesalers, with formalized governance and regular state-level reviews.

• Strategic partnerships and resource dedication tailored by state, sometimes involving collaboration with other suppliers.

Brand performance and innovation

• Jameson momentum rebuilt through targeted marketing, new sponsorships (e.g., MLS), and bartender advocacy programs.

• Portfolio architecture clarified, with innovations like Jameson Triple Triple and Black Barrel showing strong early traction.

• RTDs (ready-to-drink) represent about 2% of net sales, used as a recruitment tool for core brands, with partnerships like Absolut and Ocean Spray.

• Agave portfolio strengthened with Código and Del Maguey, supported by a dedicated field team focused on key states and on-premise accounts.

• Four 'explode' brands selected based on category dynamism and competitive advantage, with Jefferson's expected to become a power brand soon.