How Pernod Ricard Global Travel Retail is fulfilling global sustainable commitments while maintaining market share
We can safely say that sustainability has become more than just another trending topic. Many companies invest time and money in creating products that respect the environment and people, showing willingness and commitment to developing more responsible business models.
One of the companies dedicated to driving sustainable change is Pernod Ricard. Recognised as a UN Global Compact LEAD participant for their SDGs (Sustainable Development Goals), Pernod Ricard is currently the only wine and spirits company to receive this recognition. Through its four-pillar Sustainability & Responsibility global roadmap, Nurturing Terroir, Valuing People, Circular Making and Responsible Hosting, Pernod Ricard sets out ambitious goals and targets to drive innovation, brand differentiation, and employee attraction.
To support its global commitment to reduce carbon footprint and minimise waste, Pernod Ricard is developing more sustainable packaging solutions by reducing bottle weight, removing plastic from labels, caps and secondary packaging, increasing recycled content, and looking at ways of reducing carbon emissions in the making process.
Developing a new sustainable GWP
As a part of their corporate sustainability roadmap, one of the objectives is to create more sustainable GWPs (Gift With Purchase) distributed in the travel retail channel. Pernod Ricard Global Travel Retail wanted to create a sustainable version of the carry-on trolleys that consumers get as a gift after purchasing high-value Pernod Ricard whiskeys, like Chivas Regal, in duty-free shops. Hima Samani, Insight and Intelligence Manager at Pernod Ricard GTR and the team wanted to understand how to implement new GWPs without impacting the customer experience.
"Sustainability is a serious topic for many companies, as well as for Pernod Ricard. We're committed to being a leader in sustainability in the Wine & spirits industry. One of our goals is to ensure that our GWP items are 100% recyclable, reusable or compostable. By launching this project, we wanted to understand how consumers would react to the switch from our original carry–on trolleys to a more sustainable option. More importantly, we wanted to ensure that the same high-quality consumers expect from Pernod Ricard is still evident," explains Hima.
Following the success of previous projects, they turned to the boobook team for support with managing the research and providing clear, actionable insights.
"Because we had such great experience working with boobook before, I was confident to trust them entirely with this project and know that they would be able to deliver against our objectives," says Hima.
The research focused on Indian travellers who were questioned through two different stages, an online quantitative survey and extensive qualitative analysis. "We chose Indian travellers because they are an important consumer group who received the trolley bag as a gift with purchase. So, to get the optimal results, we wanted to make sure to choose the consumers who are familiar with GWP's having received them in the past, and therefore be more open and forthcoming with valid, honest feedback," continues Hima.
At the foundation of the research was an analysis of the current customers' opinions. Trolleys are the most liked GWP item, appreciated for their exclusivity and elevating the quality of the product.
"We compared our current trolley bag with several other options on the market, including the new proposition, a sustainable and foldable trolley bag. We wanted to see what impact this bag might have on potential brand value and analyse how we can improve and make it more desirable," reveals Hima.
Creating clear guidelines based on consumers' opinion
The new trolley bag received positive reactions across target groups from a design point of view, material impression and perceived user-friendliness. When choosing between current and new sustainable trolleys, the sustainable trolley was well-favoured.
"There were a couple of surprises throughout the process, which was great. Boobook helped us understand these insights and how they could impact our business. For example, sustainability might not be the biggest purchase driver, but it still leads to changes in behaviours," explains Hima.
Even though the project required several methodologies and cross-analysis, boobook confidently carried out the research.
"We chose to collaborate with boobook because this was a specific type of research based on conjoint analysis. We required a level of expertise that the boobook team has," shares Hima.
Moving forward
"The boobook team is incredibly thorough and knowledgeable. They understood our research objectives because they have an excellent understanding of our business needs. They bring much more than just data reporting. I rely on their ability to come up with solutions with minimal interference," says Hima.
Looking at the bigger picture, sustainability seems to attract attention but is not on top of consumers' minds yet, and it's still not a crucial purchase driver. Boobook's recommendations will allow Pernod Ricard to set the agenda on sustainability and promote its thought leadership position.
"We are pleased with the results as they give us more room for exploration; it sets a great foundation for us to define sustainable GWPs and understand how to communicate sustainability to our audience," concludes Hima
About Pernod Ricard Global Travel Retail
Pernod Ricard first gained presence in Travel Retail in the early 1980s and today Pernod Ricard Global Travel Retail is leading the value creation within the channel. Restructured in 2017, Pernod Ricard Global Travel Retail brings together the Asia Pacific, Americas and Europe, Middle East and Africa travel retail arms into one global retail hub supported by market-based businesses. Pernod Ricard Global Travel Retail has continued to grow in strength, with 2019 seeing +6% growth driven by all regions, cementing its position as the 2nd largest market in terms of profit within the Pernod Ricard Group.
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC.
About Pernod Ricard
Pernod Ricard is the No.2 worldwide producer of wines and spirits with consolidated sales of €8,824 million in FY21. Created in 1975 by the merger of Ricard and Pernod, the Group has developed through organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive brand portfolios in the industry, including Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, and Kenwood wines. Pernod Ricard’s brands are distributed across 160+ markets and by its own salesforce in 73 markets. The Group’s decentralised organisation empowers its 19,000 employees to be true on-the-ground ambassadors of its vision of “Créateurs de Convivialité.” As reaffirmed by the Group’s strategic plan, “Transform and Accelerate,” deployed in 2018, Pernod Ricard’s strategy focuses on investing in long-term, profitable growth for all stakeholders. The Group remains true to its three founding values: entrepreneurial spirit, mutual trust, and a strong sense of ethics, as illustrated by the 2030 Sustainability and Responsibility roadmap supporting the United Nations Sustainable Development Goals (SDGs), “Good times from a good place.” In recognition of Pernod Ricard’s strong commitment to sustainable development and responsible consumption, it has received a Gold rating from Ecovadis. Pernod Ricard is also a United Nations’ Global Compact LEAD company. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.
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