Wine and Spirits Giant Pernod Ricard Uncorks Digital Treasury Transformation with Kyriba

Pernod Ricard, the world's second-largest wines and spirits group, boasts an impressive portfolio with 17 of the world's top 100 spirit brands and over 240 premium brands distributed across more than 160 markets. Faithful to its motto, "Good Time From a Good Place" Pernod Ricard's mission is to cultivate the magic of human relationships in a sustainable, responsible, and long-term value-creating approach. Its decentralized organizational structure empowers its 20,000 employees to act as ambassadors of inclusive and meaningful conviviality.

As the company evolved, its existing treasury management system (TMS), which had been in place for 20 years, became outdated and cumbersome. The old TMS was overly customized and difficult to manage, hindering the transformation of the treasury function. This bottleneck prompted a change in their TMS. Florence Tresarrieu, Pernod Ricard’s Global SVP, Investor Relations & Treasury, described this project as “an opportunity for a more holistic reflection on the mission of treasury for the group, as a true business partner in performance management and transformation of the group. The mission is structured around three simple but critical issues: ensure the visibility, mobility, and security of cash within the group.”

A Neat Solution: Kyriba's SaaS Treasury Solution

The need for new treasury technology was not just about replacing an outdated system; it was an opportunity to standardize processes and support a more agile, less siloed team structure. The goal was to focus on tasks that add the highest value for finance and the group. Additionally, the desire for a Software-as-a-Service (SaaS) treasury solution was driven by the painful experience of lengthy and costly updates with the previous system.

Kyriba, already in use for banking communication and cash management at Pernod Ricard, was the natural choice for the new project. The familiarity with Kyriba's platform, combined with its SaaS treasury solution, made it possible to simplify maintenance, harmonize processes, and meet the objective of using a single tool for the entire treasury function. Isabelle Colin, Pernod Ricard’s Treasury Control Director, noted, "Kyriba is in a dynamic stage of development and innovation which perfectly corresponds to our ambitions. We wanted a solution that evolves with us and meets the challenges of tomorrow’s treasurer."

Since the implementation of Kyriba, Pernod Ricard has managed all of its foreign exchange and commodity derivatives, as well as the group’s internal and external financing, in a single tool. The system automates the receipt of foreign exchange and internal financing requests from subsidiaries, limiting operational risk and ensuring autonomy in managing their needs directly in Kyriba.

A major achievement was the integration of the netting process for currency hedging of intra-group invoicing. Developed through a dedicated module in Kyriba, this process allows Pernod Ricard to consolidate several thousand invoices each month and effectively manage the associated exchange risk.

Toward a more ambitious future

Florence Tresarrieu sees this treasury technology project as the first step in a broader strategy. She stated, “After having deployed a central treasury, we are working on the deployment of a global treasury, and Kyriba is the perfect tool to support this, through its simplicity, versatility, and robustness.”

Pernod Ricard aims to expand the use of Kyriba for cash management and banking communication to all its subsidiaries, ensuring the visibility, mobility, and security of its cash. With Kyriba, Pernod Ricard completes its digital transformation journey, enhancing agility and efficiency across its global operations.