Pernod Ricard (RI) Investor update summary

Market context and consumer trends

• U.S. spirits market softened, with value down about 5% year-to-date due to affordability pressures and evolving consumer behavior.

• Economic moderation, inflation, and consumer apprehension are key drivers of current softness.

• Health, wellness, moderation, and generational shifts are influencing consumption patterns, but overall spirits consumption and household penetration remain stable.

• Spirits maintain share against beer, aided by RTD growth.

Strategic priorities and organizational changes

• Focus on sharper portfolio prioritization, stronger execution, and a more focused organization.

• Resources concentrated behind key brands, with clear roles for each.

• Route to market reset, commercial leadership strengthened, and distributor partnerships optimized for sustainable growth.

• Organization simplified, accountability clarified, and teams empowered with data, AI, and technology.

Brand and portfolio execution

• Bold brand activations, RGM affordability, and smaller formats address economic pressures.

• RTDs and convenience formats meet demand for ease; experience-led activations and cultural partnerships foster connection.

• Innovation and wellness trends drive no/low-alcohol options and new formats.

• Power brands (Jameson, Absolut, Kahlúa, Malibu, The Glenlivet, Skrewball) represent 70% of net sales and are the focus for growth.