Pernod Ricard has agreed to sell the majority of its wine portfolio to the owners of Australia’s Accolade Wines to focus on its spirit business, it was announced on Wednesday.
The world’s number two Western spirits maker plans to sell its wine brands from Australia, New Zealand and Spain in an attempt to dispose of a dragging division.
It will sell well-known labels such as Jacobs Creek, Stoneleigh and Campo Viejo, subject to regulatory approval.
Pernod Ricard did not disclose a price.
Driving Growth
The move will see Pernod Richard hone its portfolio further towards spirits like Absolut Vodka and Martell Cognac, with special emphasis on spirits with a high price tag.
It will also continue to own champagne brands like Mumm and its US and French wine brands, as well as labels in Argentina and China.
Pernod Ricard said in a statement the deal would allow it to direct its resources to brands that drive growth, while its former wine brands would belong to a dedicated wine player with global sales.
The company said, ‘(they) will benefit from the focus required to achieve their potential, reinforce their position and seize opportunities around the world.’
Wine sales made up just 4% of Pernod Ricard’s sales in the financial year ending June 2023, when they declined by 2%.
The company has increasingly focused on expensive liquors as beer and spirits have grown in popularity in Western markets.
Globally, the wine industry is grappling with a supply glut, forcing some producers to destroy vines.
Recent years have also seen poor weather impact the grape harvest.
Consumption in China, a former high-growth wine market, is now shrinking.
'Financially Sustainable Future'
The consortium of investors that owns Accolade, Australian Wine Holdco Limited (AWL), consist of funds backed by US private equity giant Bain Capital and others.
AWL said it would combine Pernod’s assets with Accolade.
A spokesperson for the consortium Joshua Hart said, “(The deal) will create a more certain and financially sustainable future for the business.”
He added that the combined business would be better able to adapt to changing consumer tastes and meet the challenges facing the industry.
Pernod Ricard said it expects to close the transaction in the second half of 2025.
Last year, the drinks company said it was “continuously exploring” options, including divestments, in response to a report by the Australian Financial Review on a possible sale of some of its wine business.
In May, a newspaper cited an unnamed source when reporting that Pernod Ricard’s wine business could be worth about A$500 million.
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