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Economic Moat

Pernod Ricard has no economic moat

Drinkers can choose competing spirits without paying a switching fee or losing anything they have already invested in. Pernod Ricard’s established brands and broad distribution help it compete, but do not prevent other large producers and smaller specialists from winning customers.

Why Pernod Ricard has no moat

Customers can switch easily

Scale is not exclusive

Markets support many competitors

The explanation behind each reason