Thibault Lecerf (Pernod Ricard): "We are now ready to explore use cases more focused on financial aspects".

‍What motivated Pernod Ricard to embark on Web3?

Pernod Ricard was motivated by the opportunities offered by the new Web3 technology, which presents interesting new use cases. The company therefore felt it was crucial not to miss out on these potential new services and to anticipate rather than react. The hype surrounding 2021, marked by a bull run and the emergence of numerous NFT and metavers projects, has also prompted some of the Group's 240 brands to express their interest in this sector. To tackle these subjects in a structured and secure way, we formed an in-house multidisciplinary task force, having culminated in the creation of a Web3 factory: an in-house expertise service supporting Pernod Ricard brands in their blockchain / Web3 initiatives.

‍Can you outline the projects you've completed?

There have been a lot of projects over the past few months, but I'd particularly highlight The Whisky Exchange Cabinet and Ricard 3.0.

The Whisky Exchange Cabinet for the value proposition it offers customers. Indeed, the platform offers bottles of exceptional spirits for sale. Once sold, the bottle remains safe in a vault. The user has the NFT, the title of ownership of the spirit. This limits the risks of breakage, theft or poor storage, but above all facilitates resale on the secondary market (as the bottle has never left the safe, there is no need to have it appraised), and there are also royalties on future sales, in particular to reward the brand over time.

The second project I'll remember is the one run by teams from Pernod Ricard France and contemporary artist Neïl Beloufa. The artist created 6 service objects that incorporate Web3 technologies and offer an interactive way of serving Ricard. Users have the opportunity to create and personalise their own NFT Ricard 3.0, which is displayed in real time on the screen of the sculptures and comes to life when the right quantities of Ricard and water have been served. To launch the project, the 6 objects were presented at the NFT Paris trade fair. On this occasion, users had the opportunity to create their NFT and interact with the objects.

What struck me most was the public's enthusiasm around this activation: with the ability to change the NFT's metadata after it has been created, to monitor users' consumption, and to update the sculptures' screen in real time to show each user's NFT, the teams have come up with a really solid project from a tech point of view. NFT Paris brings together an audience of crypto-experts and digital artists, and I was delighted to see a brand that will soon be a hundred years old arouse so much interest in this community.

‍How was project development carried out internally?

To centralise best practice and minimise risks, we created a 'Web3 Factory'. This has enabled us to structure several key aspects of our various projects, such as the audit of smart contracts, the creation and management of wallets for our brands, as well as KYA (Know Your Address) and KYT (Know Your Transaction) compliance to ensure the origin and provenance of funds. We have also set up a brokerage service. To guarantee quality and security, we have worked with renowned partners. I'm thinking of Taurus, Chainalysis and also Ennea, whom I salute and thank in passing.

‍What made it a success?

In my opinion, the success lies in the skilful blend between the creative freedom left to the brands and the centralisation of Web3 skills in-house. We have put together a multidisciplinary team within our task force, including business, legal, technical, tax and marketing experts. Close coordination with our service providers, the Group's brands and the Web3 Factory was also essential. We adopted a practical and proactive approach, which enabled us to maintain visibility and a clear understanding of each stage in the value chain. The idea has always been to get our hands into the engine, without being directed by different players without knowing what it was all about.

Do you have any figures to share?

During NFT Paris, the Neil and Ricard France teams mined around 750 NFT for the Ricard 3.0 project. As for The Whisky Exchange, the teams sold a bottle for 14 ETH (or 40,000 euros at the then rate) in less than five minutes.

‍What did this experience bring to the group?

This experience allowed us to take our first steps in the Web3 sector in a measured way, integrating the subject internally rather than delegating to third parties. This has led to a great deal of evangelism and training of the various stakeholders within the company. We have also overcome major challenges related to auditing, as well as accounting and tax issues. The first marketing use cases have opened the way to new opportunities. We are now ready to explore use cases more focused on financial aspects and value transfers, in particular the tokenisation of assets, which could be very interesting for the spirits sector.

‍Based on this experience, what are the best practices to remember for large groups wishing to launch into Web3?

For large companies wishing to launch into Web3, it is already essential to dialogue with their peers to identify the Do's and Don'ts. The choice of service providers must also be made with care. It's also crucial, in my view, not to delegate everything: you need to get directly involved, develop in-house expertise and forge solid convictions. Finally, it's important to arbitrate with discernment and only adopt Web3 if it provides real added value, an economic reality and this use case cannot be achieved with Web2 technologies.

‍What are the most relevant Web3 use cases for a large group?

For the spirits sector, the example of The Whisky Exchange Cabinet is particularly relevant. In terms of customer experience, token gating is a promising device. In the future, tokenisation of assets such as casks could become commonplace. International transfers 24/7 and the payment of service providers via smart contracts offer considerable advantages. Finally, authentication. Although this is an interesting use case, it can sometimes be achieved effectively with Web2, as demonstrated by the example of what Martell's teams have achieved in China.