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SUSTAINABILITY & RESPONSIBILITY (S&R) PROMOTE RESPONSIBLE DRINKING

Transparency of Labelling 3.3.2.4 and Responsible Marketing Pernod Ricard has allocated significant resources to: ensure that the public is properly informed of potential risks linked to ● excessive or inappropriate consumption of its products; label its products in a transparent manner; ● disseminate its Code for Commercial Communications as well as its ● Internal Approval Panel procedures to employees and communication/marketing agencies; train sales and marketing staff on responsible marketing and ● commercial practices. With regard to the transparency of labelling, the Group and its employees are committed to the transparent labelling of its products. 100% of affiliates with a distribution business incorporate the ● “pregnant woman” warning logo on all bottles distributed in European Union countries. In 2013, the decision was taken to gradually extend the application of this logo to all bottles distributed by Pernod Ricard worldwide. To date, 99% of affiliates with a distribution business have already applied it (notwithstanding regulatory constraints). In 2015, Pernod Ricard decided to add the address of a ● responsible drinking website to the back labels on bottles across the whole of its brand portfolio as stocks are gradually replenished. To date, 90% of affiliates with a distribution business have already applied it. In most cases, the www.wise-drinking.com address redirects consumers to the responsible drinking site for the country they are in or, if there is no site for that country, to the IARD (International Alliance for Responsible Drinking) website at www.responsibledrinking.org. The website www.wise-drinking.com also allows them to download the application of the same name. In 2017, the Group gave consumers around the world access to ● nutritional information for its strategic brands (all global brands and major local brands) via the digital tool. A brand website, often together with a QR Code or barcode, that provides access to nutritional information is included or will gradually be included on the labels of all bottles. At Group level, 100% of these brand website pages have been online since 20 June 2017. Finally, 100% of affiliates include a responsible drinking message in the majority of their advertising and promotional material (new media, television, cinema, posters and press). The field of sponsorship is excluded, since this falls outside the traditional scope of advertising. The affiliates with local regulations prohibiting the advertising of alcohol are excluded from the calculation of this index.

In 2015, the Executive Committee appointed two of its members, Philippe Guettat and Anna Malmhake, to liaise with the RMP. In particular, they are consulted for advice in the event of an orange (approved subject to modification) or red (rejected and new campaign submission required) ruling being given. They are also consulted on any changes to the Code or the drafting of implementing guidelines. In 2017, the “Responsible Marketing Panel” digital platform was officially launched. Since this date, all campaigns submitted to the RMP via the inbox are downloaded onto the platform, where the Panel is able to discuss whether to issue a notice. The affiliate is then notified of the final decision via the platform. The campaigns and the reports to Executive Committee are now archived on this RMP platform. The RMP is independent from the Marketing Department and reports directly to the Pernod Ricard Executive Committee. A report on all advertising campaigns examined is submitted to the Executive Committee at each of its meetings. Nine such reports were submitted during FY18 financial year. Some affiliates, such as The Absolut Company or Pernod Ricard Mexico, have introduced similar control procedures locally. The implementation of such procedures, which are conducted prior to submission to the Panel, is strongly recommended. During FY18, the RMP examined 119 campaigns and product innovations. Of these campaigns, only one was the subject of a change request (orange notice) in order to be fully compliant with article 4 of the Code for Commercial Communications. The last scene in a video showed people drinking alcohol in a spa, thus associating alcohol consumption with a potentially dangerous activity. The video was modified accordingly. The Panel also gave confidential advice (copy advice procedure) for 116 campaign proposals and product innovations. In total, the Panel examined 235 advertising campaigns during FY18. Six complaints have been made in the current financial year, only two of which concerned campaigns reviewed by the Panel. Both complaints were rejected. Of the four not reviewed by the Panel, two complaints were upheld. One was a short video posted on Facebook and featured models who appeared to be under 25. The other complaint was filed in the United States against Pernod Ricard and 10 other companies. This complaint concerned the blog of a well-known whisky enthusiast who had featured some of our brands together with Star Wars figurines on his website test pages. Since the Panel was set up in 2005, only two of the 2,566 campaigns examined by the Panel have been cancelled following a complaint.

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