Specialist
Former EVP at Southern Glazer's Wine & Spirits LLC
Agenda
- Key trends and developments in the spirits industry including channel shifts and pricing dynamics
- Pernod Ricard's (PAR: RI) US portfolio and expansion opportunities
- US tariff implications for Pernod Ricard’s volumes and profitability
- Competitive landscape – Pernod Ricard vs Diageo (LON: DGE)
Questions
1.
Could you give an overview of the key trading dynamics in the US spirits market, including an estimate of its size and outline of the competitive landscape?
2.
How were spirits categories growing or declining prior to and amid coronavirus?
3.
Could you comment on shifts towards or away from on-trade prior to coronavirus? I know the pandemic will have massively impacted the channel mix.
4.
You mentioned the impact of stimulus cheques in the US, which is interesting given that another round may occur. Could you discuss the broader impact of the pandemic on the US spirits market and the trends within it? I imagine the craft segment took a larger hit than others.
5.
Did customers returning to core brands benefit players such as Pernod Ricard and Diageo?
6.
How could brand dynamics change as we exit the pandemic? Might consumers have regained their taste for core brands and continue to focus on them? Could there be pent-up demand for experimentation? Do you expect core brands to lose out as on-trade opens up?
7.
How do you assess Pernod’s growth through 2020 to today vs growth in the broader US spirits market?
8.
Would you say there’s scope for further geographical expansion for Jameson? Could you elaborate on the Black Barrel variant’s premiumisation and innovation potential?
9.
Do you think there’s any further risk of other Irish whiskies increasing the competition against Jameson? Is there more of a play around American whiskey taking share from the US Irish whiskey market?
10.
Do you expect Pernod’s whiskey category to evolve? Could the company acquire a bourbon brand given its weak positioning here? Could that be too cannibalistic to Jameson?
11.
Could you elaborate on Absolut and how Pernod turned this brand around?
12.
Does Absolut bring any scale to Pernod’s business, especially given many US states maintain a three-tier distribution system?
13.
Have you noticed any traction for Absolut’s brand repositioning and the new marketing message around consensual sex?
14.
Could you highlight any winners or losers across the rest of Pernod’s portfolio? Which brands could provide volume growth? Which do you expect Pernod to attempt to divest?
15.
How could growth play out between Pernod and Diageo given their US portfolios? Could you call a potential winner over the next 12-36 months? Pernod doesn’t have an American whiskey brand and is light on tequila, but it does have Malibu, which is exceptional in the flat rum market.
16.
Could you outline Pernod’s route-to-market strategy and why it lags Diageo’s strength here?
17.
Pernod has hired a lot of employees from Frito-Lay’s direct store distribution. Is there any evidence this has tightened Pernod’s relationship with distributors? Does this still need to play out?
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