Powerhouse French drinks group Pernod Ricard retains its firm belief in travel retail as a “must win” channel. That was the emphatic message from the company’s Chairman and CEO Alexandre Ricard in an enlightening and outstanding Knowledge Hub session at the Virtual Travel Retail Expo today.
Ricard shared his views about the path ahead for the company, and the industry, in a conversation with The Moodie Davitt Report Chairman and Founder Martin Moodie.
Asked about the Pernod Ricard commitment to travel retail, Ricard said: “Travel retail has demonstrated time after time its resilience. It is a strategic, brand-building channel which still has huge potential. For us the whole experience starts with the booking of a journey and goes all the way through to the traveller’s return. It’s a 360-degree journey where the traveller is absolutely captive and we can engage and communicate through many touchpoints.”
Considering how the pandemic has affected the desire to travel, Ricard noted that 60% of travellers have indicated their hope to travel again as soon as it is practical and possible. “The desire is absolutely there”, he said, adding that “revenge travel” by those who are tired of restrictions will boost the travel retail channel.
“We believe that travel retail is in gradual recovery mode,” he said, with sales increased by domestic and regional travellers. “Phase three is international travel and we obviously welcomed the good news that the US is reopening in November for travel between the US and Europe.”
Ricard said the group is closely and pro-actively monitoring the situation in other regions and countries to develop its strategy for the future. “Will the traveller really want to be spending time in a shop? Will the consumer still want to taste products because of the whole sanitary environment? What will the average basket look like going forward?”
He predicted a short-term pick-up in trade and sales before the channel stabilises. “We need to understand how we can engage more efficiently with travellers as they return to the channel while at the same time developing tools to ensure that engagement.”
On the acceleration of “game-changing” digital tools and marketing in travel retail, Ricard commented: “I do not think the game has changed. The whole digital piece was already there.” He suggested rather that the pandemic has prompted more efficient promotions and collaborations, and noted that digital tools and platforms are leveraging travel retail as a showcase channel to a whole new level, with China helping to light the way.
Ricard also highlighted the critical strategic importance of Pernod Ricard’s ‘Good Times, Good Place’ CSR programme, which is based on four pillars: Nurturing Terroir, Valuing People, Responsible Hosting and Circular Making.
