Pernod Ricard sharpens US route to market
The US arm of Pernod Ricard has established two commercial divisions, RTD and Gem, as part of its new route-to-market (RTM) strategy.
The company’s reimagined RTM strategy aims to sharpen the group’s portfolio to ‘maximise potential’ and ‘deepen’ its distribution partnerships.
Paul Basford, who joined Pernod Ricard USA as chief commercial officer in December last year, said the new strategy could “unlock all opportunities for growth”.
Pernod Ricard USA has partnered with several new distributors, including Reyes Beverage Group and Crescent Crown, in seven key states, and Johnson Brothers.
They join the company’s existing US distribution partners: Southern Glazer’s Wine & Spirits, Republic National Distributing Company (RNDC), Martignetti Companies, Breakthru, Empire Distributors, Fedway Associates, and Georgia/Tennessee Crown Distributing.
As part of the new strategy, Absolut owner Pernod Ricard has given the divisions dedicated teams to complement the company’s existing distribution network.
The new RTD (ready-to-drink) division will focus on Pernod Ricard’s brands in this segment, helped by Reyes and Crescent Crown, which together bring ‘extensive market experience’.
Alongside existing partners such as Southern Glazer’s and RNDC, the distributors will work to ‘amplify and accelerate ambitious growth plans’ for the group’s RTD business, which includes the recently launched Absolut and Ocean Spray range.
This new division was established on 1 May.
Effective from today (1 September), the Gem division will aim to ‘incubate and scale the next generation of high-potential brands’.
This division will follow a state-by-state distribution approach with tailored support from new partners such as Crescent Crown and Johnson Brothers, and existing distributors.
Johnson Brothers will represent Pernod Ricard’s Gem portfolio across 11 states: Hawaii, Indiana, Iowa, Minnesota, Nebraska, North Carolina, North Dakota, South Dakota, Texas, Virginia, and West Virginia.
In addition, Pernod Ricard has expanded its on-premise division, enhanced its revenue growth management through the use of advanced analytics and post-event analysis, and invested in its commercial team.
Basford added: “We are a building a commercial organisation that is not only fit for today but future-ready. This is about more than structure – it’s about world class execution, winning mindset, clear accountability, and meaningful partnerships.”
The new strategy comes just several months after Pernod Ricard announced its plan to restructure into a “more agile and simplified organisation”, and group its business into two divisions, Gold and Crystal.
In other Pernod Ricard brand news, Malibu recently joined forces with juice producer Dole on a range of canned cocktails, which will be released early next year.
Last week, the French firm reported a full-year sales decline of 6% in the US, dragged down by ‘subdued consumer confidence and economic moderation’.
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