Pernod Ricard restructuring to create two main brand divisions following decline in net sales

From Yahoo Finance: 2025-06-19 10:53:00

Pernod Ricard is restructuring to create a more agile organization, with plans to group brands into two main divisions called “Gold” and “Crystal”. The move follows a decline in net sales, impacted by trade tensions and slowing demand in key markets like the US and China.

CEO Alexandre Ricard announced the internal project, Tomorrow 2, aimed at simplifying the organization. The restructuring is expected to lead to departures among staff. LVMH’s Moët Hennessy also revealed plans to lay off thousands of employees, reflecting industry challenges.

The new business divisions at Pernod Ricard will include iconic brands like Martell Cognac and Absolut vodka. The changes are expected to be implemented in the last three months of the year. Despite declining sales, the company’s volumes were up 1% in the nine-month period.

In the US, Pernod Ricard saw a 2% increase in net sales, but in China, sales dipped 5% in the third quarter and 22% in the first nine months. CFO Hélène de Tissot expressed concern about China’s impact on the company’s annual performance due to tariff challenges.

Read more: Pernod Ricard launches reorganisation plan