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French wine and spirits group Pernod Ricard<\/strong> has announced a crucial step in its premiumization strategy by signing a sale agreement with Australian Wine Holdco Limited (AWL)<\/strong>, a consortium of international institutional investors.<\/p>\n <\/p>\n The sale, the financial details of which remain confidential, is expected to be finalized in the first half of 2025<\/strong>.<\/p>\n <\/p>\n The transaction involves a significant portfolio of Australian, New Zealand and Spanish wine brands. It includes well-known brands such as Jacob’s Creek, Orlando and St Hugo (Australia), Stoneleigh, Brancott Estate and Church Road (New Zealand), as well as Campo Viejo, Ysios, Tarsus and Azpilicueta (Spain).<\/strong><\/p>\n <\/p>\n This \u201cportfolio of well-established international brands, owned and produced by Pernod Ricard Winemakers\u201d,<\/em> represents \u201can annual volume of 10 million 9-litre cases\u201d.<\/em><\/p>\n <\/p>\n \u201cThe whole constitutes a complete integrated platform from vine to bottle, comprising seven wineries\u201d<\/em>, the group said.<\/p>\n <\/p>\n <\/p>\n The group, which owns such iconic brands as Ricard, Ballantine’s, Absolut and Mumm,<\/strong> sees the sale as an opportunity to strengthen its position in the most profitable segments of the alcoholic beverages market.<\/p>\n <\/p>\n\n <\/p>\n \u201cThis sale will enable Pernod Ricard to strengthen its premiumization strategy and focus on its portfolio of Premium spirits and champagne brands, the driving force behind its growth,\u201d<\/em> said the group in a statement.<\/p>\n <\/p>\n This decision comes after a period of slow growth for Pernod Ricard. In the third quarter of its fiscal year, sales fell by 2% to 2.35 billion euros<\/strong>, due in particular to the normalization of the post-Covid spirits market.<\/p>\n <\/p>\n The key markets of the United States and China<\/strong> performed less well, with organic declines of 11% and 12%<\/strong> respectively, due to inventory adjustments and a \u201cdifficult macroeconomic context\u201d.<\/em><\/p>\n <\/p>\n <\/p>\n CEO Alexandre Ricard<\/strong> expressed his ambition to maintain growth at the top end of the 4% to 7%<\/strong> range over the medium term.<\/p>\n <\/p>\n To achieve this, he continues to focus on targeted acquisitions and strategic divestments. In 2023, the Group acquired Codigo 1530 tequila, Skrewball whisky and alcoholic beverages from Canada’s Ace Beverage Group<\/strong>, while divesting brands such as Czech bitter Becherovka and Clan Campbell blended scotch whisky.<\/strong><\/p>\n <\/p>\n The sale of this wine portfolio, representing around 4% of the Group’s sales, or some 480 million euros,<\/strong> is part of a drive to refocus on higher value-added products. By strengthening its premiumization strategy, Pernod Ricard aims to solidify its future growth and adapt to the changing dynamics of the global spirits market.<\/p>\n <\/p>\nFocus on luxury<\/h2>\n
Strategic objectives<\/h2>\n
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