General presentation of Pernod Ricard:
The Pernod Ricard group is currently one of the world leaders in the production and sale of wines and spirits. It owes its success to very large alcohol brands such as Absolut, Ricard, Ballantine's Whiskeys, Chivas Regal, Royal Salute, Jameson, Havana or the Mumm and Perrier-Jouët champagnes.
With a global workforce of 18,523 employees, Pernod Ricard is present worldwide.
Know the Pernod Ricard share competition:
Check out the main current competitors of the Pernod Ricard group that you should include in your analyses, taking into account their most important and influential news and publications:
- Diageo: This English company specializes in the alcoholic beverage sector. It's the largest company worldwide on the liquor and spirits market and was created by the merger between Grand Metropolitan and Guinness Plc.
- Brown-Forman Corporation is also a direct competitor and one of the largest US companies in the alcohol business. With nearly 3,350 employees, the company is listed on the New York Stock Exchange.
- Bacardi: This Company specializing in spirits and in the production of rum in particular is based in Cuba and has its headquarters in the United States. It's also the largest family business in this spirits industry.
- Fortune Brands: Finally, this American holding company is the last direct competitor of Pernod-Ricard. Established in 1969 under the name American Brands before being renamed in 2011. This company was, for a time, listed on the NYSE.
The strategic alliances set up by the Pernod Ricard group:
- Rabbit Hole Whiskey: In 2019, through its New Brand Ventures division in the USA, Pernod Ricard announced a majority stake in Rabbit Hole whiskey, whose production headquarters are based in Louisville, Kentucky.
- Erasmus: Also in 2019, Pernod Ricard renewed its partnership with the Erasmus Student Network aimed at continuing its commitment to responsible consumption and fighting binge drinking among young Europeans. The objective here is to make students aware of the importance of responsible consumption and to reduce alcohol-related accidents in student evenings.
- Jumia: Again in 2019, Pernod Ricard also strengthened its existing partnership with the Jumia e-commerce platform in order to continue to offer its products there. Thanks to this strengthened partnership, Pernod-Ricard will be able to offer its portfolio of premium brands to a greater number of consumers in Africa. The group announced its investment in this African e-commerce website in a press release, becoming a strategic shareholder of the company. This partnership between the two companies has existed since 2016.
Introduction and stock quote of the Pernod Ricard share:
The Pernod Ricard share price is listed on compartment A of the Euronext Paris market and is included in the calculation of the CAC 40 stock market index.
Stock market data
To complete this article, we suggest that you check out some general information about this share. This data essentially refers to Pernod Ricard's place on the stock market as well as the share's stock quote information and some technical specificities which you should know before you start out in its online negotiation:
- In 2017, the total market capitalization of Pernod Ricard amounted to EUR 31,916.95.
- The number of securities issued by Pernod Ricard and currently in circulation on the market is 265,421,592.
- The Pernod Ricard share price is currently listed on compartment A of the Euronext Paris market in France.
- The Pernod Ricard company is also part of the composition of the French national stock market index CAC 40 and therefore of the 40 French companies with the highest market capitalization.
- Pernod Ricard's shareholders are currently composed of 44.86% of floating assets, 13.20% of Société Paul Ricard shares, 9.95% of The Capital Group of Companies, 9.73% of MFS Investment Management, 7.49% of the Bruxelles Lambert Group, 3.16% of Le Delos Invest III, 1.50% of Norges Bank Investment Management and 0.93% of the Oppenheimer Funds investment fund.
To help you analyse the price history of the Pernod Ricard company, we suggest that you check out the historical events that have marked this group in recent decades.
- It was in 1975 that the Pernod Ricard group was established, following the merger of the Pernod and Ricard companies.
- In 2001, Pernod Ricard bought the spirits & wine business from Seagram sold by Vivendi Universal and sold its non-alcoholic beverage businesses such as Orangina and Pampryl.
- In 2005, the Penrod Ricard group finalized the acquisition of the world number 2 in spirits, Fortune Brands, and then became the second group in the wine and spirits sector worldwide with a turnover of over 5.6 billion euros.
- In 2006, the group also bought the Vin & Spirit Company, more importantly owner of the Absolut Vodka brand for 5.62 billion euros.
- In 2008, Pernod Ricard's turnover reached 6.58 billion euros and the group employed more than 12,000 people worldwide. It has risen to first place in this sector in many countries such as Japan, Mexico, China, Russia or Brazil and of course in Europe.
- In 2014, Pernod Ricard bought the American company Kenwood Vineyards. The same year, it cut 900 staff positions within a restructuring project due to declining results.
- In 2016, Pernod Ricard acquired a majority stake in the Monkey 47 group. Later that year, it announced the sale of Domecq brandies and wines.
By cross-checking these events with the major movements which impacted the price of Pernod Ricard shares over the same period, you'll be able to understand how this stock reacts to fundamental analysis and anticipate future variations.
The strengths and advantages of the Pernod-Ricard share as a stock market asset :
The first advantage of the Pernod-Ricard share is, of course, the very privileged positioning of this group in its sector of activity and internationally. Indeed, in the very specific field of wines and spirits, the group shares the leading position with the Diaego group, which gives it a certain stability in relation to its competitors and a strong reputation.
The Pernod-Ricard group is particularly well positioned in certain specific areas such as white spirits and rum with 38% of volumes, for which it is currently the world leader. Next come whiskies with 36% of volumes, for which it is number two in the world, and liqueurs with 20% of volumes, for which it is also number two in the world. It is also worth noting that the group ranks third in the world for cognacs and brandies, also third for bitters and is the international leader in the aniseed category.
Geographically speaking, the Pernod-Ricard group also shows a certain balance with activities well distributed between the European market, the American market (North and South America) and the Asian market with the rest of the world. It therefore has little exposure to local economic risks.
In recent years, the Pernod-Ricard group has implemented a new strategy based on upgrading its products.
Pernod-Ricard also benefits from a low level of dependence on household consumption.
The Pernod-Ricard group has always been able to impose its price level on its consumer customers because of its premium positioning and the low level of competition on some of its flagship products. As a result, investors benefit from good visibility in terms of increased profits and the group can guarantee the preservation of its margins in the future.
For some time now, Pernod-Ricard has of course benefited from the end of the US embargo on Cuba. The group, which is present in this country with its Havana Club brand, thus has the opportunity to target the US market, which is currently the third largest rum market in the world.
Finally, we also note of course the strength provided by the financial structure of Pernod-Ricard, which is particularly healthy. The cash flow generated by the group's activity very easily reaches one billion euros.
Weaknesses and disadvantages of the Pernod-Ricard share as a stock market asset :
Firstly, the nature of the sector in which Pernod-Ricard operates must be taken into account. Indeed, with a significant increase in alcohol consumption among young people in recent years, the group is faced with an image risk that it will have to learn to circumvent.
On the other hand, while the group was banking on organic growth in sales, this recovery appears to be more delicate than expected, in particular because of certain uncertainties arising from the European market, as with the French market, which accounts for more than 8% of sales. Elsewhere in the world, this growth is being hampered by a drop in revenues in China. Asia in general is the direct source of some of the Group's financial difficulties, largely due to China, which has been experiencing difficulties for the past four years and a significant drop in sales and margins in India, a market that accounts for more than 10% of the Group's sales.
As a result, the prospects for growth and development are considered a little too weak by investors, who are losing interest in this stock in favour of more promising securities. Finally, Pernod-Ricard shares are suffering from a rather low yield that is finally discouraging the most hesitant buyers.