Pernod Ricard Korea to bolster consumer engagement, offer products for Gen MZ

Pernod Ricard Korea Marketing Director Miguel A. Pascual Nombela poses with Ballantine's, Chivas Regal and other products at the company headquarters in Seoul. Courtesy of Pernod Ricard Korea

Company posts 32.5% sales increase for 2022

By Lee Hyo-sik

Korea's imported liquor market has seen a steady increase in sales over the past year as more and more young consumers here turn to whisky and other types of hard liquor. Pernod Ricard Korea (PRK) has been riding high on the trend, posting a 32.5 percent increase in sales last year from 2021.

The Korean unit of the French spirits maker plans to focus on marketing activities to engage directly with Korean consumers both online and offline, as well as offering a variety of products and services.

The Korea Times conducted an interview with PRK Marketing Director Miguel A. Pascual Nombela, a marketing expert who won Lions creativity awards at Cannes and a number of brand campaign prizes and marketing effectiveness awards. He was previously the marketing director of Hong Kong & Macau and Head of Digital and Communications in Spain before joining PRK. The following are excerpts.

Q: The demand for whisky has been increasing recently. When it comes to PRK, there are many representative whisky brands, such as Ballantine's and Royal Salute. What is the market's reaction?
A: PRK possesses a well-balanced brand portfolio in consolidation to our wide-range of whisky lineups. Based on our consumer-centric business model, we provide range of diversified selection in different categories for whiskies: scotch, non-scotch and single malts, and in prices and ratings. From July 2021 to June 2022, our sales reached 159 billion won ($122 million), up 32.5 percent from 120 billion won a year earlier. This indicates that PRK's strategy, plan and the brands are responding well to Korean consumers' needs. During the COVID-19 pandemic, the company did not stop at brand launches. When normal life restarted after the pandemic, we resumed investing in raising most effective touchpoints with our consumers by arranging variety of events that could provide brand experience, while increasing the consumer needs of whisky.

Q: Recently, PRK has been holding various consumer events such as brand pop-up stores. Above all, its investment in Korean consumers is noticeable. What events will it hold in the future?
A: Our objective is to provide memorable experiences to our consumers and clients in a meaningful and creative way. Various pop-up stores and brand events had and will be held at various locations this year to expand consumer base and love for the brand. Through these events, consumers can experience the brand story, heritage and responsibly enjoy our brands. In the last eight months, more than 50,000 consumers have experienced at least one of our events. We successfully launched Chivas Regal Gil, a two-month pop-up in southern Seoul, offering the best Korean street culture experiences to our consumers. Or Ballantine's Glenburgie at Gourmet 494 Hannam in Yongsan offered diverse premium lifestyle content. Its Jameson Irish Whiskey, for example, keeps increasing its awareness in Korea by being the protagonist in relevant territories and focusing on Highball as its key drive. We will organize more consumer events. Korea is a key market for Pernod Ricard and we will keep on providing memorable experiences to consumers to unlock the magic of human connections.

Q: As whisky drinkers are trending younger, the industry's preferred models are also changing. PRK's choice of model is also noticeable. How effective it was to hire younger models such as actor Ju Ji-hoon, Minho of SHINee and Lisa of BLACKPINK?
A: For a long time, whisky has been considered an exclusive drink for middle-aged men. However, as the trend of consumption of alcoholic beverages has changed, especially among Millennials and Gen Z (MZ) consumers, we have also joined hands with young adult models such as Ju Ji-hoon, Minho and Lisa. With the brand's trendy pop-up stores and digital campaigns, it seems to appeal to many young adult consumers for both males and females. Anyway, celebrity strategy is not only about younger models but how relevant they are to the shared brand values and messages. In terms of engagement, it is clear that relevant influencers have a significant impact. The question is how, and what is the return on investment. In PRK, we closely measure the efficiency and relevance of every touch point and how to build brand equity. We will keep pushing our efforts to establish a responsible drinking culture in Korea, as well as introducing ways for consumers to enjoy quality conviviality through our products, experiences and services.

Q: The MZ Generation is enthusiastic about whisky as Korean liquor trends change rapidly. How do you see these trends, and what are the prospects of the Korean market and PRK's plans in the future?
A: I think it's very positive. In fact, considering the growing number of Korean bars in Asia's top 50 bars, I feel that interest in whisky and bar culture is increasing not only for MZ consumers but also for the industry as a whole. Korea is an exciting country that is creating and influencing the rest of Asia and the whole globe. Gucci, Nike, Celine, Balenciaga, Adidas, The North Face and other top global brands are choosing Korea to build their image in the rest of the world. Korea is full of creativity, fashion and art, and brands must understand deeply what kind of experience should be delivered. PRK will continue to offer contents to further expand consumer touchpoints with Korean MZ Generation consumers, who enjoy brands according to their own preferences and values.

Q: Are there any products you are preparing to release this year?
A: We have recently launched a premium rose wine, Chateau Sainte Marguerite, one of the few Grands Crus de Provence. Absolut Vodka is also launching a new flavor, Absolut Passion Fruit, as you can see in its recent digital advertisement World of Absolut Cocktails. Those are just some examples. We are constantly seeking new opportunities that could fulfill consumers' needs and moments of consumption. Indeed, we will have more surprises to come that I cannot reveal at this stage.

Q: It is also known that PRK recently introduced various premium gin products, such as KI NO BI, MALFY and Monkey 47. Do you think new drinking trends such as Gin & Tonic will be expanded in the Korean market in addition to whisky highball?
A: Since the pandemic, the traditional "get-together" drinking culture has almost disappeared, while a home-drinking and self-indulgence, or drinking alone, trend was firmly established. In addition, as consumers have a short meal party during the day or early evening time, there is a growing preference for products that can be enjoyed lightly in late afternoon time with low alcohol by volume (ABV) or products that can be enjoyed in pairs with food. Reflecting this changed trend, we are accelerating on categories, moments of consumption and drinking rituals to drive on growth: after-work and pre-dinner, casual to fine dining and whisky highball, but also on emerging trends with Lillet Spritz, Gin & Tonic, malts, cocktails, liqueurs, rose wines and champagnes. Until recently, Korean consumers enjoyed liquor culture within the very limited range of traditional categories like Scotch whisky, soju and beer. But I am sure that Korean consumers will continue their journey towards finding ways to experience a variety of different selections through the diversified categories in the broader liquor market, and of course while enjoying responsibly.

Q: Previously, blended Scotch whisky was the main thing when it came to whisky, but recently consumer needs seem to be expanding to non-scotch whisky, such as Japanese whisky, Taiwanese whisky and to single malt. What is the marketing strategy of PRK, which is famous for having a diverse product range of representative blended Scotch whiskies?
A: Indeed, Korean consumers' preference and interest in whisky have been expanding from Scotch whisky to non-Scotch whisky and single malts. Reflecting on our consumers' journey in discovering a variety of whiskies, PRK has launched a wide selection of whiskies including non-Scotch whiskies and single malt whiskies. Irish whiskey Jameson Black Barrel, single-pot still whiskey Redbreast and bourbon whiskey Rabbit Hole, were also newly introduced to the market. Boutique single-malt whisky Aberlour benefited from significant listing improvement. Even within the same brand, PRK introduced a variety of products ranging from entry/premium products to high-end products. In case of Scotch Blended whisky, Royal Salute made an effort to secure a solid consumer base by adding lineups of Royal Salute 21Year Old Malts Blend, Royal Salute 21Year Old Blended Grain and Royal Salute 30 Year Old. We also launched premium gin brands such as Monkey 47.

Q: How is technology impacting PRK's business?
A: New technologies are only a small part of the digital revolution that we are experiencing. The impact is enormous because they convey the needs that we were not aware of and now it is impossible to live without them. It is true that it is radically transforming companies, but it is also affecting the society as a whole, where the impact changes the way we relate to each other. That is why I consider it is crucial to dedicate quality time to understand and quantify the impact of the new ecosystems on our business model in order to evolve and/or transform when necessary.

Q: What is the role of the marketing director in the current digital revolution?
A: Marketing has never been more important to drive growth and has never been so complex. The speed of change is dizzying, and the time it takes to adapt is becoming shorter and shorter, which makes it even more interesting. Today, in marketing, we have the responsibility of being the largest contributor on accelerating the business growth. This forces us to become more skilled and prepared than ever, and be fully transversal to the rest of the organization. It is obvious that just knowing about brand positioning, advertising campaigns and media strategies is not enough. We must be able to understand how our work impacts on sales forecast, how to manage inflation or raw material supply constraints and even how to retain and attract talent. Today everything is connected, and anticipation is a must.

Q: In the digital era, what is the role of creativity? Is it still effective?
A: I am a strong believer that creativity is one of the most powerful business accelerators. From my previous experience in working in different companies and countries, my observation is that we often lack the courage and are generally too afraid of peoples' reactions, by choosing not to take small risks even if this implies boldness. Poor creativity is a consequence of briefings without ambition and there is nothing worse for a brand than being irrelevant. We always work with the team in "Think Big mindset," or what I call "Play in Champions League" as a Real Madrid supporter.