PERNOD RICARD Connected Objects: The Experience of Pernod Ricard Mathieu PROT, Group IP Director 1
Who We Are International Growth 1975 2000 2001 Purchase 39,1% of Seagram's Wines & Spirits businesses. 2005 Acquisition of Allied Domecq 2008 Acquisition of Vin&Sprit 2
Who We Are Key Figures No. 1 worldwide in Premium and Prestige Spirits 8 BN in net sales 2 BN in Group net profit 18,000 employees 80 Market Companies covering 3 Regions 2012/2013 net sales: 39% 35% Americas Europe 26% Asia/Pacific 70% OF PROFITS FROM RECURRING OPERATIONS RESULT FROM REGIONS OUT OF EUROPE 3
Our Brands Our strategic assets The Pernod Ricard House of Brands 2 global icons 7 strategic Premium spirits brands 5 strategic Prestige spirits and champagne brands 4 Priority Premium wine brands 18 key local brands 4
Tradition and Innovation Tradition: the roots of our wines and spirits 1715 2015 300 th anniversary 1932: invention of the recipe 2014: the recipe remains unchanged 5
Tradition and Innovation Tradition: the roots of our wines and spirits 200 years and only 7 cellar masters Aging process from 21 to 38 years 6
Tradition and Innovation Innovative companies What first comes to mind? 7
Tradition and Innovation Innovation: a driver for Pernod Ricard 2012 # 15 Pernod Ricard # 24 Google # 26 Apple 8
Tradition and Innovation Innovation: a driver for Pernod Ricard 2014 product launch overview 9
Tradition and Innovation Innovation: a driver for Pernod Ricard The advent of the connected consumer 10
Tradition and Innovation Innovation: a driver for Pernod Ricard Taking part in the change 3 experiences of Pernod Ricard with connected objects 11
Enabling consumers to protect their favourite brands: The Connected Bottle 12
The Connected Bottle Our initial problem China is the world s largest spirits market but it is also plagued by counterfeit products. Counterfeiting leads to: 1. Millions of Euros in loss of revenues 2. Lack of consumer trust in the brand 3. Consumer health hazards 14
The Connected Bottle Pernod Ricard s response 15
The Connected Bottle 16
The Connected Bottle A unique digital authentication Enter the 8-caracter code above the QR code OR If the code is valid, you will be directed to an authentication page Scan the QR code with your smartphone 17
The Connected Bottle A unique digital authentication Enter the 8-caracter code above the QR code OR If the code is invalid, an automated message will appear and be sent to Pernod Ricard Scan the QR code with your smartphone 18
The Connected Bottle The intellectual property of the connected bottle Trademark, copyright, design patent, know-how: Owned by Pernod Ricard QR Code: Used by consumers to authenticate bottles Free of any licence Unfounded patent troll threat Seal Vector : Used by Pernod Ricard teams to authenticate bottles Licensed by ATT 19
Changing the relationship between consumers and brands: tshirtos 2.0 by Ballantine s 20
tshirtos 2.0 by Ballantine s What is tshirtos 2.0? The world s first scrunchable and wearable t-shirt A reinvention of the t-shirt using modern technology A canvas of self-expression The True You 21
tshirtos 2.0 by Ballantine s What s inside? A battery Bluetooth e-broidery 22
tshirtos 2.0 by Ballantine s How will you use tshirtos 2.0? Be creative Express yourself Share 23
tshirtos 2.0 by Ballantine s Inception and development Idea for a connected t-shirt Collaboration with a first agency Evolution of the concept Collaboration with a second agency tshirtos Technology under licence Ownership of trademarks and domain name No transfer of rights tshirtos 2.0 Technology developed from scratch Technology under licence Ownership of trademarks and domain name No transfer of rights 24
tshirtos 2.0 by Ballantine s Intellectual property rights strategy Ownership of trademark tshirtos Ownership of domain name tshirtos.com Outsourcing of the development and production No ownership of the technology 25
tshirtos 2.0 by Ballantine s Latest news No commercialization at present www.tshirtos.com website First run of 20 tshirtos 2.0 across various markets Worn by DJs, musicians, actors at public events 26
Project Gutenberg Inception and development Redefining the cocktail experience Commitment to the conviviality of the future: An experience that is connected, entertaining, tailored and responsible 28
Project Gutenberg Brought to you by The start-up of Pernod Ricard Activating global scale breakthrough innovation to invent the future of conviviality 29
Project Gutenberg Connection to a service platform Mixology tutorials Personalised suggestions Content level indicator 30
Project Gutenberg Non-refillable book containers Recyclable packaging At-home delivery by postal service 31
Design patents Copyright Domain names Trademarks Patents 32
Project Gutenberg Accompanying the revolution Business incentive to publicly promote innovations Necessity to ensure legal protection 33
Project Gutenberg Communication timeline Collaboration + n years Priority year NDA and R&D contracts Patent filing Design patent filing External communication 34
Project Gutenberg R&D Patent filing strategy Complex patent applications R&D Divisional applications 35
Project Gutenberg Trademark registration 3 to 5 years to use the trademark* Product inception Trademark registration Commercial launch * Depending on the country 36
Data privacy Copyright Design patents Domain names Trademarks Patents 37
New issues raised by connected objects: The question of data privacy 38
Data Privacy Data privacy rules Regional rules in the E.U. only Data Protection Directive 95/46/EC Regulation set for 2015 Global impact Different rules in each country e.g. In France, Law No. 78 17 of 6 January 1978 Common concerns worldwide Consent of the individual Purpose limitation Data transfer 39
Data Privacy Data privacy issues raised by connected objects Data retention limitation Security and confidentiality Third-party transfer Connected Objects Interconnection of databases International transfer Transparency 40
Data Privacy Implication Privacy by design Embeddingprivacy into the design of technologies Benefits Building and securing consumer trust Anticipatingthe long-term changes in data protection rules Implementation at Pernod Ricard Cooperation reinforced between the different departments Data privacy policy Globalprivacy compliance audit 41
Conclusion For different connected objects, there are different purposes and different legal needs And yet, many concerns are the same: Contractual security: NDA and R&D contracts. IP rights strategy: filing deadlines, length of procedures, licence agreements, dealing with patent trolls, etc. Internal strategy: emphasis on confidentiality, privacy by design, cooperation between different departments. 42