Pernod Ricard has decided to divest itself of its international wine brands. This strategic move includes renowned labels such as Jacob’s Creek and Campo Viejo, with the company aiming to concentrate on its premium spirits portfolio, including its famed champagne selection.
The esteemed Paris-based enterprise, recognized for its vodka offerings like Absolut and gin brands Beefeater, will part ways with wine labels from Australia, Spain, and New Zealand under the stewardship of a prominent entity in Australian viticulture.
While Pernod Ricard has not disclosed the sum garnered from this transaction with Accolade Wines Ltd., it is noted that these wine brands typically generate sales of around 10 million cases annually.
Anticipated to be finalized by mid-2025, the sale will allow Pernod Ricard to refocus its investments and efforts on enhancing its spirits and champagne lines. As one of the world's significant players in the wine and spirits market, alongside competitors like Diageo from the UK, Pernod has a diverse portfolio including Havana Club rum and Jameson Irish whiskey under its belt.
The company reported sales surpassing £10 billion last year with an operating profit of £2.8 billion, yet wine accounts for only 4% of this revenue—a slight decrease from the previous fiscal year.
The transaction will encompass several renowned wine brands internationally such as Orlando and St Hugo in Australia; Stoneleigh, Brancott Estate, and Church Road in New Zealand; Ysios, Tarsus, and Azpilicueta from Spain.
Pernod Ricard will continue to manage its US and French wine brands along with labels found in Argentina and China. Accolade Wines Ltd., the prospective buyer of these international wine assets, is a consortium supported by influential investors including Bain Capital, an esteemed private equity firm.
In response, AWL's representative, Joshua Hartz, expressed confidence in leveraging this opportunity to better adapt to evolving consumer preferences and address the industry-wide challenges facing wine producers globally.
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