Pernod Ricard has confirmed the commencement of an “internal project” that Global Drinks Intel understands centres around bringing back-office operations together into two silos.
Citing an internal presentation, Reuters reported late yesterday that the move will “include bundling administrative tasks rather than having brands operate individually”. The article also cites unnamed sources claiming the redraw will result in “departures”.
Speaking to Global Drinks Intel today, a company spokesperson provided a statement explaining Pernod Ricard’s “work on an ongoing basis to adapt our organisation and ways of working to the fast-evolving business environment”.
“That is why we have announced to all our employees an internal project aimed to create a more agile and simplified organisation aligned with our strategic objectives and the current evolution of our business,” the statement continues. “These changes imply the launch of local consultation processes with our social partners and employees where necessary, therefore we cannot comment any further at this stage.”
The spokesperson declined to add more detail.
Global Drinks Intel understands, however, that the restructure will comprise two divisions, ‘crystal’ and ‘gold’. The pair will be split along unaged- and aged-brands lines. Per the statement, however, it is not yet clear what the approach will look like from a geographical or brand-company basis, nor what impact there will be on employee headcount.
As well as market-specific units, Pernod Ricard also consists of six subsidiaries that are each “responsible for developing the global brand strategy for their respective brands and categories” as well as their respective production and facilities management. Chivas Brothers, Irish Distillers, Martell Mumm Perrier-Jouët, The Absolut Group and Havana Club International were joined in July last year by North American Distillers.
Among the spirits brand owners undertaking similar projects this year are Brown-Forman, Campari Group and Moet Hennessy. The trio have reportedly set workforce reduction targets, while sources have told Global Drinks Intel that Pernod Ricard’s approach “will work the other way around”.
Further details are expected when the group announces its results for fiscal 2025 – to the end of June – on 28 August. For the nine months to the end of April, sales declined by 4% year-on-year, with Pernod Ricard expecting its full-year top line to come in down by low single digits.
