Analyst praises innovation work at Pernod Ricard
Pernod Ricard held a conference on the theme of innovation at La Maison Rouge art gallery in Paris this week reviewing twenty of its key launches over the past year.
New Ricard bottle
The French company timed the event to coincide with the launch of the new Ricard bottle that is due to roll off production lines in Bordeaux, Lille and Bessan from February. Described as a “daring metamorphosis” by the Ricard company chairman Philippe Savinel, the new design aims to refresh the heritage pastis brand.
In a note to investors, Nomura analyst Ian Shackleton was full of praise for the innovation work on show at the event in Paris.
“Company innovation day contained a strong message that the company has accelerated focus on brand development and creativity and that this could lead to stronger growth going forward, especially from high-end extensions of existing brands.”
Brand extensions
For example, over the past year Pernod Ricard has launched a number of extensions to the Absolut brand. These include the super-premium Absolut Elyx, currently on test in Greece, Canada and Mexico as well as Absolut Wild tea and Absolut Watkins.
Shackletonsaid: “Continuing investment in a brand such as Absolut vodka appears to have helped bring renewed growth in the key US market.”
The analyst was also impressed that the innovation is being supported without the need for a big hike in spending on marketing. “The company does not expect this to materially increase marketing spend/net sales (just under 18 per cent in FY10); company is now targeting that 15-20 per cent of marketing will be digital, which we believe could be a more efficient medium.”
