Pernod Ricard’s portfolio consolidation efforts could be stretching to include one of its ‘strategic international brands’, according to a report published today (7 February).
An article from Reuters cited “five sources familiar with the matter” claiming that champagne brand GH Mumm could be the next to leave the group’s portfolio. Pernod Ricard’s most-recent divestments have included mint liqueur Minttu to Royal Unibrew’s Hartwall in October, Red Heart rum to KWV in South Africa in August and, most notably, almost all of its wine operations to the owner of Accolade Wines in July.
The sources told Reuters that the group “is working with investment bank Rothschild & Co on the possible divestiture”. A value of ” (no) less than three times its annual sales of EUR200m (US$207.6m)” was put on a potential sale by one of the sources.
In a statement following the publication of the article, a spokesperson for the group noted the “recent market rumours” about Mumm.
“Pernod Ricard regularly assesses and evaluates its strategic opportunities and is continuously exploring options, including divestments or the streamlining of some or part of individual business units,” the spokesperson added. “This is a usual process in line with management’s mission of delivering value to shareholders, employees, clients and stakeholders.
“The group nonetheless highlights that, at this stage, no decision has been made regarding any particular action or involving one of these options.”
The speculation comes at the end of a trying week for the brand owner, which had to bring forward its half-year results announcement to Thursday, due to its downward revision of short-term guidance. Group sales in the six months to the end of December were down by 4% on the year-prior, with the forecast for the full year of fiscal 2025 (to the end of June) shifting from an expected return to top-line growth to a “low single-digit decline”.
Rival brand owner Diageo was up 1% in sales terms for the same period.
GH Mumm, which sits with champagne sibling Perrier-Jouët in Pernod Ricard’s ‘strategic international brands’ stable, has performed less than spectacularly in recent years. Barring the widely-experienced bust and boom years during and immediately after the worst of the Covid-19 pandemic in 2020 and 2021, annual sales have stuck at the single-digit increase-or-decrease level.
In the 12 months to the end of June last year, however, the brand slumped by 12% in sales by value. The latest figures, for the half-year to December-end, saw Mumm down 6%, while Perrier-Jouët dipped by 1%.
