PERNOD-RICARD - URD 2021-22 EN
Risk management Risk factors
2. Toxic contamination (1)
RISK IDENTIFICATION AND DESCRIPTION
POTENTIAL IMPACTS ON THE GROUP
The Group purchases most raw materials (grapes, cereals, agave, etc.) used in the manufacture of its wines & spirits from farmers or industrial producers (alcohol, sugar, flavourings, etc.). The presence of undesirable substances in these raw materials or a defect in the distillation, fermentation or bottling process could result in the presence of chemical (contaminant), biological (microorganism), physical (foreign body) or allergen contamination.
The Group’s reputation and image may be undermined at any time by one-off incidents at an industrial facility or relating to a specific product. For example, contamination, whether arising accidentally, or through an act of malice, could cause injury or intoxication to a consumer, thereby exposing the Group to litigation and causing reputational harm to brands.
RISK CONTROL AND MITIGATION
The Group has implemented protection and control systems to limit the risk of contamination. The control of this risk is based both on the application of the HACCP method, which aims at identifying the risks involved in the manufacturing process and to bring them under control, as well as on the implementation of specific internal guidelines. This approach is also accompanied by the implementation of management systems compliant with the ISO 22000 standard for food safety management, which is aimed specifically at controlling such risk. An operation to analyse contaminants, covering all Strategic International Brands and the most important Strategic Local Brands, is periodically conducted by the Group’s head office. It consists of an array of chemical analyses covering all the contaminants considered possible, and involves detection testing for around 40 unwanted molecules plus several hundred pesticides.
4.
Note that this risk is also covered in Subsection 3.4.1.1 of the Non-Financial Information Statement. (1)
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Pernod Ricard Universal Registration Document 2021-2022
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