Pernod Ricard to reduce number of SKUs by up to 30%

07 September, 2016

Pernod Ricard has outlined a global initiative to reduce ‘portfolio complexity’ by reducing the number of SKUs by up to 30% in some markets.

Chief financial officer Gilles Bogaert said it is hoped the 'operational excellence roadmap' initiative, that will be rolled out between fiscal year 2016 through 2020.

He said the reduction in SKUs will provide focus for improved sales opportunities and reduce inventories levels. "The operational roadmap we launched over a year ago is one of our key business priorities. We want to grow the top line but we want to be very serious and active about operational excellence." 

Bogaert also said the company is not going to shy away from selling off non-core brands. “When we have brands that are not core we are not afraid to sell them", he said. "We have a large whisky portfolio and we didn’t have a focus for Paddy’s so we sold it to Sazerac."

Denis O’Flynn, Pernod Ricard UK managing director said he doesn’t see the initiative having a huge impact in the UK. “We have a huge portfolio and what works in one market doesn’t necessarily work in others. Trying to be all things to all men is complex.

“We are the leading product in 11 categories. If I look at the core rationalistion of the grocery sector, we have been a core beneficiary. We don’t have a one in one out policy.” 

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