French spirits group Pernod Ricard has said it is banking on digital initiatives, notably the use of data, and its portfolio of high-end brands to accelerate sales growth over the mid-term.
The world's second-biggest spirits group behind Diageo, Pernod Ricard said it would aim to deliver annual organic sales growth at the upper end of a 4% to 7% growth range over the mid-term.
Operating Profit Targets
Pernod, whose brands include Martell cognac, Mumm champagne and Absolut vodka, reiterated it aimed to lift its operating profit margin by 50 to 60 basis points per year, provided it could deliver annual organic sales growth of 4% to 7% for the medium term.
Pricing will be a key, further enhanced by the use of data to predict customers' habits and industry trends, it said. Last year, it acquired the online Whisky Exchange platform.
Pernod Ricard also vowed to improve operational efficiency and keep advertising and promotional spending at 16% of sales.
The group's 'Conviviality' strategy about leveraging the power of data, its portfolio of brands and its distribution network to 'further stretch Pernod Ricard’s profitable and sustainable growth', it said in a statement.
“In today's world and for many companies, the end goal is to leverage data," said chief executive Alexandre Ricard. "For us, at Pernod Ricard, the end goal is to spread convivialité… by leveraging data.”
In the year to June 30, 2021, Pernod Ricard delivered organic sales growth of 9.7% and lifted its operating profit margin by 213 bps buoyed by a rebound in demand for its high-end spirits in the United States and China in the aftermath of the COVID pandemic.