Product details

The France-based Pernod Ricard SA was a major player in alcoholic beverages but lagged behind the market leader Diageo in the wines and spirit market. Following the acquisition of Seagram in 2001 and Allied Domecq in 2005, Pernod Ricard grew from a local company to an international company. The stagnant domestic market and growing international demand, forced Pernod Ricard to make it big in the wines and spirit market. After the successful acquisition of Allied Domecq, Pernod Ricard aimed to become the number 1 player. Besides expanding into the growing markets like the UK and US with its premiumisation strategy, the company also aimed to explore the emerging markets of Asia with its decentralised approach. Despite a promising outlook, in terms of sales and market share, a shadow looms over Pernod''s future, with the retirement of Chairman Patrick Ricard in 2008 without an obvious family successor, the company faces a dilemma. The case traces the journey of Pernod Ricard and highlights the organic and inorganic growth strategies of the company. The case explores the various strategies the group had adopted for its growth with its opportunities and the challenges in store for the company. With all its efforts for expansion, will Pernod Ricard be able to realise its dream to be number 1 before Patrick Ricard retires in 2008?