Pernod Ricard sells wine brands to Accolade Wines owner
The disposal allows Pernod to strengthen its premiumisation strategy, directing resources to the premium spirits and Champagne brands that drive its growth, a statement from the company said.
According to the spirits and wine business, the transaction was the result of its continuous assessment of its strategic opportunities, in line with its longstanding policy to deliver sustainable value for its shareholders, employees, clients and partners.
The deal includes the sale of a wide portfolio of international wine brands, owned and produced by Pernod Ricard Winemakers.
Closing conditions
These include Jacob’s Creek, Orlando and St Hugo from Australia, Stoneleigh, Brancott Estate and Church Road from New Zealand, and Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain. The business is an integrated platform from vineyard to bottle and includes seven wineries.
With the transaction, the Paris-based organisation will sell its wine division to a player of global scale, with a route to market dedicated to the wine industry.
Closure is subject to fulfilment of customary closing conditions, including regulatory clearances, and is expected to happen next year. Financial details were not disclosed in the announcement.
Australian Wine Holdco is a consortium of international institutional investors, comprising funds backed by Bain Capital, Intermediate Capital Group, Capital Four, Sona Asset Management and Samuel Terry Asset Management.
Wine sales
Earlier this year (April), Pernod Ricard reported a ‘robust performance’ in its third quarter results, which it said illustrated the strength of its diversified portfolio and broad-based geographic footprint.
Volumes grew by 1% in the period with growth resuming after four consecutive quarters of decline.
Meanwhile, the latest CGA Drinks Recovery figures last month (June), showed the wine category outperformed all other drinks segments in the week to Saturday 15 June, with wine seeing a 4% sales rise year on year.
However, the statistics also found soft drinks and spirits were 5% and 14% behind last year respectively.
