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Pernod Ricard to Restructure French Operations

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Pernod Ricard to Restructure French Operations

Pernod Ricard to Restructure French Operations
October 07
12:05 2019
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Pernod Ricard is to restructure its operations in France by merging its Pernod and Ricard businesses in line with the three-year strategic plan ‘Transform & Accelerate’, implemented by the group across all its markets worldwide. Successful restructuring has already been implemented in key markets such as the United States, China and Global Travel Retail.

The aim of the French project is to recreate conditions for value growth in an increasingly competitive market undergoing accelerated change. In two years, group sales in France have declined €60 million – equivalent to the sales of a European affiliate. In addition to deflationary pressure and the recent impact of the Egalim Law, which are in part the cause of these results, the Ricard and Pernod companies must also address the emergence of a ‘new’ type of consumer who is reinventing the meaning of convivialité.

The French model, based on two companies and two distribution networks, has become overly complex and lacks agility. This requires a structural response and therefore the total reshaping of the organisation of the two French distribution subsidiaries, Ricard and Pernod. This involves the creation of a single company, Pernod Ricard France, with effect from 1 July 2020. The head office of this new entity would be located in Marseille, in the new Docks business district.

The proposed merger of the two companies would lead to approximately 280 roles being open to voluntary redundancy. These would involve the sales and marketing departments affected by the new business combination. This organisation would also create new career development opportunities for employees with the planned creation of around 90 new roles to support this new strategy.

The project does not concern Pernod Ricard’s other operations in France.

Furthermore, as part of the group’s strategy of actively managing its brand portfolio, Pernod Ricard has announced the proposed disposal of the Café de Paris brand and the Cubzac production site to InVivo Wine, the wine division of the leading French agricultural co-operative. This project would be completed with a guarantee to safeguard the jobs of the site’s 29 employees. The two parties are in talks to establish a sub-contracting agreement for the brands not sold to InVivo.

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