Pernod Ricard Selling Off Bulk of International Wine Portfolio
Pernod Ricard is offloading a significant portion of its portfolio of international wine brands, including those owned and produced by Pernod Ricard Winemakers. Australian Wine Holdco Limited (AWL) has agreed to purchase the brands.
The company said the move will help strengthen its premiumization strategy, allowing Pernod Ricard to focus its efforts and resources on its premium international spirits and champagne brands.
Over 10 million 9-liter cases are produced annually from three origins, including Australia-based Jacob’s Creek, Orlando, and St Hugo; New Zealand-based Stoneleigh, Brancott Estate, and Church Road; and Spain-based Campo Viejo, Ysios, Tarsus, and Azpilicueta.
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Pernod said in a statement that the sale of the wine portfolio, to a global player with a route to market solely dedicated to the wine industry, will benefit the brands with "the focus required to achieve their potential, reinforce their position, and seize new opportunities around the world.”
A Refocused Portfolio Strategy
Wine sales accounted for about 4% of Pernod's sales in the financial year ending June 2023, and had declined to just 2% growth, with soft performance driven mainly by Jacob’s Creek and Campo Viejo in the UK and North America.
The sale is a result of the company’s strategic assessment of its portfolio to drive growth in strong-performing categories. It follows a recent business restructure for its American whiskey category, which will be run under a separate global brand company under the Pernod Ricard umbrella. Richard Black has taken on the role of CEO for the new company, North American Distillers.
The sale is expected to finalize early next year, with the company retaining its U.S. and French wine brands, and labels in Argentina and China; however, a majority of its wine brands will be sold off in the transaction, according to multiple sources.
Pernod Ricard, a global, French-based liqueur and alcoholic beverage company with products across the whiskey, brandy, gin, rum, champagne, tequila, liquor, and non-alcoholic spirits categories, includes such brands as Absolute, Glenlivet, Jameson, Beefeater, Kahlua, and Malibu, among others. AWL is an investor-owned firm and owner of Accolade Wines.
