Pernod Ricard has confirmed a major organisational restructure as it looks to simplify operations and respond to softening global demand for premium spirits. The French company, owner of brands including Absolut, Jameson and Martell, will consolidate its portfolio into two new divisions: Gold and Crystal, as part of a project dubbed Tomorrow 2.
According to a staff memo seen by Reuters, the restructuring aims to create “a more agile and simplified organisation” follows declining sales in key markets such as China and the US. The slump has been compounded by inflationary pressure, shifting consumer spending patterns and punitive tariffs on Cognac exports.
The Gold division will house Mumm and Perrier-Jouët Champagnes, Martell Cognac and Jameson Irish Whiskey. Crystal will include Havana Club, Absolut Vodka and French aperitif labels.
The changes are set to be implemented in the final quarter of 2025, with back-office functions bundled together across the newly defined divisions, rather than brands operating independently. In a video address to staff, chairman and CEO Alexandre Ricard said the new structure would inevitably lead to “departures”, though no specific job loss figures have yet been confirmed.
“These changes imply the launch of local consultation processes with our social partners and employees where necessary,” the company said in a statement.
The restructure comes against a backdrop of wider cutbacks across the global spirits industry. Pernod Ricard had already announced job reductions in China following steep anti-dumping duties on its Martell Cognac brand. At the same time, it is targeting €1bn in cost savings by the end of its 2029 financial year.
In the UK, further job losses are anticipated following Pernod Ricard’s sale of its wine portfolio, including names like Campo Viejo and Brancott Estate, to Vinarchy in April. Wine previously accounted for around a quarter of the company’s UK sales.
The structural overhaul also reflects changing fortunes post-Covid. While premium spirits enjoyed a pandemic-era boom, that momentum has since reversed. Pernod Ricard reported a 3% drop in third-quarter sales in April, with shares down around 50% since the beginning of 2023. Analysts cite lower consumer confidence, a resurgence in moderation, and increased competitive pressure as key factors behind the slowdown.
Rival drinks giants are taking similar steps. LVMH’s Moët Hennessy recently announced plans to cut nearly 13% of its workforce, Brown-Forman has reduced headcount by 12%, and Diageo is aiming for £500m in cost savings alongside significant asset disposals by 2028.
Industry observers will be watching closely when Pernod Ricard reports its annual results in the coming weeks. With just days left in the financial year, expectations remain muted not just for the company, but for the broader premium spirits category.
