Paris (Reuters)-Pernod Ricard (EPA:PERP), a French spirits company, said on Wednesday that it was counting on digital initiatives, especially the use of data, and its portfolio of high-end brands to speed up sales growth in the next few years.
Pernod, the world’s second largest spirits group after Diageo (LON:DGE), stated that it would aim for organic sales growth of 4–7% per year in the medium term.
Pernod’s brands include Martell cognac, Mumm champagne, and Absolut vodka. The company stated once more that it hoped to increase its operating profit margin by 50–60 basis points per year as long as organic sales increased by 4–7% per year in the medium term.
It said that pricing will be important, and that using data to predict customer habits and industry trends will help make pricing even better.
Pernod Ricard also promised to increase operational efficiency and keep advertising and promotion spending at 16 percent of sales.
Pernod Ricard will talk about its plans at a Capital Market Day later on Wednesday.
“In the world we live in now, and for many businesses, the end goal is to use data.” “The end goal for us at Pernod Ricard is to spread conviviality by using data,” said Chairman and CEO Alexandre Ricard in a statement.
In the year ending June 30, 2021, Pernod Ricard’s organic sales grew by 9.7% and its operating profit margin went up by 213 bps. This was thanks to a rise in demand for its high-end spirits in the US and China after the COVID pandemic.
