Pernod Ricard Launches Group Restructure Amid Sales Decline

Pernod Ricard has initiated an internal project called Tomorrow 2 aimed at simplifying and streamlining its organization by grouping its brands into two main divisions, dubbed 'Gold' and 'Crystal'. The 'Gold' division will include Champagne and brands such as Martell Cognac and Jameson whiskey, while the 'Crystal' division will feature Havana Club rum, Absolut vodka, and French aperitifs. CEO Alexandre Ricard has communicated to staff that the restructuring will involve departures, though the number of affected employees remains unclear. This move comes amid challenges faced by major distillers, including slowing demand in key markets like the US and China, trade tensions, and supply chain disruptions. The company is conducting local consultations with social partners and employees as part of the process, with the changes expected to take effect in the latter part of the year. Similar restructuring efforts have been reported at other spirits companies, such as LVMH’s Moët Hennessy, which plans layoffs due to market pressures.