Pernod Ricard has announced that it has agreed to sell its portfolio of international wine brands to Australian Wine Holdco Limited (AWH), a consortium of international institutional investors and owner of Accolade Wines.
The portfolio of brands in the transaction includes 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. Pernod Ricard said the international wine brands produce over 10 million 9Lcs cases annually.
In a statement about the deal, Pernod Ricard said: “This disposal will allow Pernod Ricard to further strengthen its premiumisation strategy and to direct its resources to its portfolio of premium international spirits and champagne brands that drive the growth of its business.
“The transaction is the result of Pernod Ricard’s continuous assessment of its strategic opportunities, in line with its longstanding policy to deliver sustainable value for its shareholders, employees, clients and partners.”
AWL said that it plans to create a more efficient and more diversified global wine business by combining Accolade Wines with the Pernod Ricard wine businesses.
According to AWL the combined businesses will now offer a portfolio of old and new world wines with operations in every continent. This will enable the business to better meet the challenges facing the wine industry, providing a more certain and financially sustainable future for the business.
AWL spokesperson Joshua Hartz said: “Both Accolade Wines and Pernod Ricard have a long, proud history as world-class wine producers. Combining Accolade Wines with the Pernod Ricard assets will create a more certain and financially sustainable future for the business, allowing us to better serve our customers, in more segments and more geographies.
“Backed by AWL, the combined business will be better able to adapt to changing consumer tastes and meet the structural challenges facing the global wine industry.”
The transaction is subject to regulatory approvals.
“AWL will work with relevant regulators to progress the combination, and if approved, support management to focus on a smooth future integration of the businesses.”
The transaction price for the Pernod Ricard assets is commercial in confidence.