Pernod Ricard Cuts Ties: A Risky Move or a Tactical Shift

Pernod Ricard Cuts Ties: A Risky Move or a Tactical Shift

2024-09-05 17:18:29

After days of controversy, Pernod Ricard said on Thursday it was abandoning its partnership with Paris Saint-Germain. “For more than 90 years, Ricard’s history has been intertwined with Marseille, where he was born, grew up and inspired him. This link is stronger than anything,” said Alexandre Ricard, the group’s chief executive. We recommend you (re)read the article published on Wednesday, before this change.

Marseille sounded the alarm for “treason”. One of the city’s icons, Pernod Ricard, has signed a partnership with arch-rivals Paris Saint-Germain. In the eyes of many OM supporters, this is an unnatural marriage, and they have expressed their anger, especially through the hashtag #BoycotPernodRicard. Has the group made a serious marketing mistake?

The alcohol giant has long marketed its sides and local menus with the slogan “It’s Marseille, baby”. In May 2024, the anise boss launched a “Born in Marseille” advertising campaign, adopting the city’s codes and recalling the group’s historical roots. “The attachment to a geographical area makes it possible to tell stories, giving meaning and value to the brand,” recalls Hervé Remaud, senior professor of marketing at Kedge Business School. “But the collaboration with Paris Saint-Germain is much more than that.”

Pair with Champagne instead of Anisette

Although the ads mix a bit of yellow with cicadas, good mothers and the rolling ball of the Marseille ego, in fact, “the group is a global player that goes far beyond the world of football and OM… Pernod Ricard’s headquarters are in Paris, not in Marseille, and the portfolio includes many other alcohols produced around the world,” recalls the expert.

If the controversy that emerged on social networks “is not surprising in today’s world, it is also not a problem” because it provides a kind of right of reply for the Pernod Ricard group. Faced with such serious anger, the group defended itself on Tuesday, saying that Paris Saint-Germain did not “have a contract with Pernod Ricard, but with 240 of the group’s brands”, such as Chivas Regal, Malibu, Mumm champagne…

“Surprisingly, the group was surprised”

Because yes, the marriage between football and the alcohol giant does not involve anisette. The goal is to become the “sole supplier of champagne and spirits to the club” and is limited to international events. In France, the Evin law strictly restricts the promotion of alcoholic beverages. So we assure the Marseilles that tomorrow you will not see Bradley Baquera making dry anisette next to the logo of the capital club.

Faced with such excitement, Pernod Ricard regrets the “lack of understanding”. “It is surprising that the group was taken by surprise and did not anticipate the controversy that would ensue”, says Géraldine Michel, professor at the IAE and director of the Brands and Values ​​Chair at the Sorbonne University in Paris. “Even if the agreement concerns spirits, when we see the agreement between Paris Saint-Germain and the Pernod Ricard Group, we inevitably think of … Pernod Ricard. We cannot blame consumers for this association, on the contrary we must be happy to see their capacity for protest, their local attachment to the brand. The group has communicated poorly and should have directly cited very specific brands. »

“The Right Way to Market”

“Does a group this big now risk being associated with it in order to keep ‘Ricard’ in its name? Obviously, with such an iconic word, the collective imagination is back,” asks the expert. Especially since the brand plays up this identity: “Hence the contradiction”.

Although the mayor of Marseille announced that he would meet with the group’s CEO to demand an “explanation” for the partnership, our experts believe that the error is not obvious. “The number of people buying wines and spirits in France is decreasing, and those who do tend to consume less,” recalls Hervé Remaud. Brands must therefore expand their potential customer base, which can be done more easily with a partnership with PSG, which can reach more individuals and potential customers than any other club in France. Still, the challenge grows. »

“It’s good marketing,” insists Géraldine Michel, “but there are mistakes in communication and branding. We have to take into account our community; we can’t distort the identity of this brand, which at its core remains Marseille. If some Champagne still needs to be linked to PSG to achieve growth, why not develop other drinks with OM, and especially Ricard?”.

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Pernod Ricard and Paris Saint-Germain: A​ Controversial Partnership that Ends in Abandonment

In a shocking turn‌ of events, French beverage giant Pernod Ricard has announced that it is abandoning its partnership with Paris Saint-Germain (PSG) football club, just days after the news‍ sparked widespread outrage among Marseille fans. The controversy has raised questions about the company’s marketing strategy and its connection ⁤to its hometown of Marseille.

A “Treasonous” Partnership

The news of the partnership between Pernod​ Ricard and PSG, arch-rivals of Olympique‌ de Marseille (OM),‍ was met ⁢with fury⁤ from OM supporters, who ‌labeled it as an “unnatural marriage” and expressed their anger ‍on social media ​using the hashtag #BoycotPernodRicard. The company has ⁤long been associated ​with Marseille, and its marketing campaigns have emphasized its roots in the ‍city. The partnership with PSG was seen as a betrayal of this heritage.

A Marketing Mistake?

According to marketing experts, Pernod Ricard’s partnership with PSG was a misstep. Hervé Remaud, senior professor of marketing at Kedge Business School, notes that while the company’s attachment to Marseille‍ is an ⁢important part of its brand ‌identity, the ‌collaboration with PSG ⁣went​ beyond that. “The group is⁣ a global player that goes far beyond the world of football and OM,” he said.

Global⁤ Ambitions

Pernod Ricard’s partnership with PSG was part⁢ of its strategy to expand its brand globally. The‍ company has a portfolio of international brands,⁤ including Chivas Regal, Malibu, and Mumm champagne, which are⁣ not necessarily associated with⁣ Marseille. However,‌ the controversy highlighted the importance of considering local sensitivities ⁢when making marketing decisions.

Defense and Abandonment

In response to the backlash, Pernod Ricard initially defended ‍its partnership with ​PSG, stating that it was not a contract with the football club, but with 240 of its brands. However, faced with mounting pressure, the company has since‌ abandoned the partnership. Alexandre Ricard, the company’s CEO, said that the link between Ricard and Marseille is “stronger than anything.”

Lessons Learned

The controversy has highlighted the importance ⁤of effective⁣ communication and understanding local cultural sensitivities in marketing. Géraldine Michel, professor at the IAE and director of the Brands‍ and Values ⁢​​Chair‍ at the Sorbonne University in Paris, notes that Pernod ‍Ricard’s poor communication contributed to the controversy. “The group ⁤has communicated poorly and should have directly cited⁣ very specific brands,” she said.

Moving Forward

The abandonment of the partnership is a ​lesson for companies ‍to be mindful of their branding and marketing strategies, particularly when it ‌comes to local sensitivities. Pernod Ricard will need to rebuild trust with its customers and fans, who are fiercely loyal to the brand. As the company looks ⁣to the⁣ future, it​ will need to balance its global ambitions with its roots in Marseille.

Keyword Research:

Pernod Ricard

Paris Saint-Germain

Marseille

​ Olympique ​de Marseille

‍Marketing strategy

Branding

Local sensitivities

Global ambitions

Partnership

Controversy

* Boycott

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Pernod Ricard Abandons Controversial Partnership with Paris Saint-Germain Amid Backlash ​from Marseille Fans

Meta Description:

Pernod Ricard has⁢ ended its partnership with Paris Saint-Germain football⁣ club following⁣ outrage from Marseille fans. What went wrong,‍ and what lessons can be learned from this⁣ marketing misstep?

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