Alexandre Ricard, CEO of Pernod Ricard, has announced a major internal reorganization under the project name Tomorrow 2, aiming to streamline operations and enhance agility within the company. According to a memo cited by Reuters and obtained by several media outlets, the French spirits giant will divide its more than 240 brands into two newly created divisions: Gold and Crystal.
The Gold division will include high-end products such as champagne, Martell Cognac, and Jameson Irish Whiskey, while Crystal will incorporate brands like Havana Club, Absolut Vodka, and several French aperitifs. The reshuffle also involves consolidating administrative tasks rather than managing each brand independently. As a result, the company is expecting job cuts, including voluntary departures scheduled for the last quarter of 2025.
The restructuring is part of a broader effort to cut costs by 1 billion EUR by fiscal year 2029. This comes as Pernod Ricard struggles with declining sales, particularly in China, where punitive anti-dumping tariffs have hurt Martell exports. The company had already announced layoffs in the Chinese market earlier this year (inside.beer, 04.04.2025, https://www.inside.beer/news/detail/china-tariffs-hit-pernod-ricard-martell-sales).
Amid global economic headwinds and reduced consumer spending in key markets such as the USA and China, Pernod Ricard reported a 3% drop in sales in Q3 and continues to face pressure alongside competitors like Diageo and Rémy Cointreau. The wine and spirits division of LVMH also recently announced a 13% workforce reduction.
The restructuring announcement has not reassured investors. Shares of Pernod Ricard (ISIN FR0000120693) dropped by 0.45% to 88.02 EUR on the day of the announcement.
Update as of June 24, 2025: Subsequently, the share price of Pernod Ricard has hit a ten-year low of 87.14 EUR on June 24, marking a total decline of 56% since August 2023.
