Pernod Ricard Global Travel Retail on the critical role of consumer insights in post-pandemic success

INTERNATIONAL. Earlier this month, Pernod Ricard Global Travel Retail (PR GTR) underlined its commitment to travel retail with its powerful presence at the Moodie Davitt Virtual Travel Retail Expo, where it was a Platinum Partner, fully embracing travel retail’s number one virtual event. PR GTR’s immersive and convivial Expo destination, The Island Bar, housed the Sustainability and Responsibility Sanctuary.

It highlighted key initiatives and commitments linked to the Pernod Ricard Group’s ‘Good Times from a Good Place’ roadmap and the Future of Retail Resort, showcasing key initiatives to engage shoppers with enhanced retail experiences.

Below, we review some of the content generated by PR GTR at the event. This feature is published early in ‘Buyers & Brands Bonanza Month’ at the Virtual Travel Retail Expo, which kicked off on Monday. Each working day of November The Moodie Davitt Report is profiling exhibitors, showcasing their innovations and encouraging visits to their respective virtual experience suites. Today we are featuring Pernod Ricard Global Travel Retail, with more content at this link

Pernod Ricard opened the first Martell boutique in global travel retail on Hainan Island in January this year

Pernod Ricard Global Travel Retail hosted two sessions in the Knowledge Hub during the Expo, including an interview with CEO Alexandre Ricard, who spoke to Martin Moodie about the Group’s long-term commitment to travel retail.

Ricard revealed why he’s optimistic about the channel, which remains a key market for the business: “Four years ago we identified, as part of our transform and accelerate strategic roadmap, four must-win markets. One was the US, one was China, one was India, and one was travel retail. And travel retail is still, despite this crisis, a must-win market for Pernod Ricard… we strongly believe in long-term value creation in that very strategic channel. Time after time, travel retail has demonstrated its resilience.”

Alexandre Ricard underlined Pernod Ricard’s commitment to the travel retail channel during his appearance in the Virtual Travel Retail Expo Knowledge Hub

While recognising the profound effect COVID-19 had on the global travel industry, Ricard shared how PR GTR maximised new duty free opportunities, tapping into momentum behind offshore duty free islands including Hainan and Jeju, to reinforce its leadership in the drinks sector. As reported, January 2021 saw the opening of the very first Martell boutique in global travel retail on Hainan Island, a milestone for Pernod Ricard.

The digitalisation of consumer behaviour, of which the global pandemic was a catalyst, has created tremendous opportunities within the channel. Pernod Ricard was already maximising these opportunities prior to the crisis with the Travel Trail strategy, which targets shoppers throughout their trip.

Reflecting on long-term prospects for the channel, Ricard said: “Digitisation allows companies such as Pernod Ricard, in partnership with our retailer partners and operators, to be much more efficient in terms of targeting travellers, our product offerings, promotions, and engaging shoppers at different stages of the travel trail.”

“Shoppers and travellers want to buy unique products when they are travelling… new products in terms of exclusives is still very important” – Pernod Ricard Global Travel Retail Strategy and Insights Director Anuj Roy

Later in the Expo, PR GTR executives took part in a panel discussion – titled From Insights to Actions, Shaping the Future of Retail – on how it is leading the way with consumer insights and providing shoppers with interactive, innovative and sustainable shopping experiences.

The session featured four of the PR GTR team: Anuj Roy, Strategy and Insights Director; Simon van Moppes, General Manager; Vanessa Wright, Chief Sustainability Officer; and Daniel Worboys, Head of Retail Design. They were joined by PIE Factory Sustainability Director Simon Evans.

At last year’s Virtual Travel Retail Expo, Roy shared his predictions on what the industry should expect from the next twelve months, in the height of the pandemic. Twelve months on, PR GTR has seen many trends emerge and with them, a change in the behaviour of shoppers.

Roy said: “People are wanting to buy high quality products when they are travelling because they don’t see the range in domestic markets. Basket size is increasing. There is a mindset of people maximising the opportunity to be in-store when they travel. And shoppers and travellers want to buy unique products when they are travelling. So, the importance of new products in terms of exclusives is still very important.”

Pernod Ricard Global Travel Retail highlighted the importance of sustainability initiatives for its brands at the Virtual Travel Retail Expo

As shoppers and travellers return, van Moppes discussed the importance of adapting retail presence to new consumer expectations. In the last year, PR GTR has elevated in-store theatre with digital-led experiences including the Martell robot bartender and AI ambassadors. He explained: “It’s about the whole shopper experience – from the moment consumers arrive instore, all the way through to a sampling opportunity and purchase occasion.

“It allows us to create a very personal connection with shoppers. It’s just the beginning of what we’re doing in retail to drive retail theatre which is vital for the future.”

Pernod Ricard asserted that it is fundamental that innovation does not come at the expense of sustainability. Speaking on the integration of sustainability within the business and innovation process, Wright said: “Sustainability and responsibility is not something new for us – we have a strong legacy and it’s an essential part of our business strategy. All our products come from nature, and we rely on these well-functioning ecosystems to produce and make our iconic brands, so it is our duty to protect these precious ecosystems.

“We’re doing this by having a long-term relationship with our partners and making sure we look at how we make and distribute our products. It’s important for the longevity of our business but also that those ecosystems are there for generations to follow.”

Exploiting digital opportunities is high on the Pernod Ricard Global Travel Retail agenda

Underlining its commitment to driving the channel’s sustainable change and improving the sustainability of its procedures, PR GTR has recently announced an industry-first Life Cycle Analysis (LCA) Tool, dedicated to retail merchandising.

The LCA Tool forms part of its focus on Circular Making, one of the four pillars constituting the Pernod Ricard Group’s global ‘Good Times From a Good Place’ Sustainability and Responsibility Strategy, with the objective of reducing its carbon footprint and minimising waste.

Worboys said this of the LCA tool: “It’s crucial our designs are aligned with sustainable objectives – our LCA tool is an industry-first tool which is data-driven and enables our design team to develop designs across our full estate and ensure they meet our sustainability targets. From the start of July this year, we’ve implemented the tool across all our projects to great success.”

To watch the Knowledge Hub session with Alexandre Ricard in full, click the video link below.

 

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