Pernod Ricard’s French model is based on two companies and two distribution subsidiaries (Pernod and Ricard), which has become ‘overly complex and lacks agility’. In response, the organisation is consolidating the two into a single company, Pernod Ricard France, with effect from July 1, 2020.
Over the last two years, group sales for Pernod Ricard in France have declined €60m ($65.5m). It attributes this to deflationary pressure, the impact of the Egalim Law (a French law seeking to balance trade relations in the agricultural sector and healthy and sustainable food) and the emergence of a new concept of ‘convivialité’ among consumers.
By creating Pernod Ricard France through a project named ‘Reconquer!’, Pernod Ricard believes it can win back consumers with a ‘unified and optimised portfolio