Speaking to media at a ’roundtable’ session in London today, CEO Alex Ricard explained the strategy behind purchases such as Skrewball flavoured whiskey and Código 1530 tequila as well as offloads including Clan Campbell blended Scotch and Becherovka bitters. Clan Campbell was sold to Stock Spirits in June last year, with Becherovka transitioning to Maspex in Poland in late December.
“Since 2015, we’ve acquired 24 brands and we’ve sold 13,” Ricard said at the event. “The brands we look to acquire are premium, have strong growth potential, and are present in both dynamic categories and in markets in which we want to increase our exposure.”
Ricard linked the 2022 purchase of Código 1530 to the company’s keenness to “raise our exposure in the fastest-growing [spirits] category outside RTDs in the US, which is tequila”. Meanwhile, Skrewball peanut butter-flavoured whiskey, which came on board 12 months ago, satisfied Pernod Ricard’s appetite to be part of the country’s second fastest-growing spirits category, as the acquisition just over four years ago of Castle Brands – and with it the Jefferson’s straight bourbon – helped to “grow our exposure in the third-fastest in the US”.
“Our financial policy is strictly prioritised,” Ricard added. “Number one is to fund our future growth through capital expenditure and investments. This financial year [to the end of June], we’ll invest around EUR800m. The second priority is inorganic growth through M&A. Then, we have dividends to our shareholders.
“Our fourth and final priority is, if there are any leftovers, then we do share buybacks.”
On the divestments, Ricard highlighted that Clan Campbell, which retails for around EUR18 (US$19) per bottle in its largest market of France, “isn’t premium, nor is it global”. Similarly, bitters brand Becherovka “is not [in] the most dynamic category in the region in which the brand operates”.
“Nor does it have international potential from our point of view.”
“We’re pragmatic,” he continued. “We revisit our portfolio on a regular basis. Sometimes, when we launch a sales process, we don’t sell if the offers we get aren’t in line with our expectations. We’re not in a must-sell situation, we just want to be efficient. If it creates value, we’ll sell it.”
Later in the meeting, Ricard said: “There are a few [spirits brand] acquisitions that we missed. We were happy to miss them, because we won’t overbid.”
Ricard declined to comment on the current situation regarding Pernod Ricard’s wine stable, which was rumoured – once again – last year to be up for sale. “Wine is around 2% to 3% of our group profits,” he said. “The rumours have been ongoing since 2018, but bear in mind we bought a wine brand [Château Sainte Marguerite in Provence] two years ago. “
