Pernod Ricard has made another M&A move in the RTD category, this time in Canada with majority-owned affiliate Corby Spirit and Wine buying into Ace Beverage Group.
The group, which holds majority control of Corby, said the Toronto-based unit has bought a 90% stake in Ace Beverage. The transaction values the RTD business, which produces the Cottage Springs spirits-based RTD brand, at CAD165m [US$123.6m].
As well as Cottage Springs, whose Vodka Soda, Vodka Water and Tequila Soda variants are on sale in its home province of Ontario, Ace Beverage also owns the Ace Hill, Cabana Coast and Liberty Village RTD brands.
“With ABG, Corby becomes a key player in the Canadian RTD market, giving the scale and synergies
needed in this category,” said Pernod Ricard’s global MD of RTD & convenience, Fredrik Syrén. “It is well aligned with our ambition of building a global RTD business and capture our fair share.”
The group also cited data from IWSR Drinks Market Analysis showing the RTD category increasing sales between 2016 and 2021 in Canada at a compound annual growth rate [CAGR] of 20%.
Late last year, the Absolut brand owner spent an undisclosed sum on taking a majority holding in France-based premix start-up Cockorico.
