The long-running speculation surrounding Pernod Ricard’s wine assets has resurfaced once more, this time with a finer level of detail.
Australia’s Financial Review reported earlier today that the group’s wine businesses in Australia and New Zealand, which include the Jacob’s Creek and Brancott Estate brands, are the subject of a pending strategic review. The news article names investment banks Morgan Stanley and JPMorgan as having been “mandated … to conduct [the] review”.
Pernod Ricard has been challenged over the course of the last 20 years by industry observers – including media and investment analysts – about its need for wine brands, yet no sale has yet emerged.
In a statement, the company noted the report on what it called “its potential divestment” of the Australasian wine operations. “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 group added, describing this as “a usual process”.
As well as Jacob’s Creek and Brancott Estate, Pernod Ricard also owns Spanish Rioja Campo Viejo and Kenwood Vineyards in the US.
Brand portfolio consolidation has been rife among multinational beverage alcohol companies in recent years. Only three months ago, Brown-Forman confirmed the divestment of Finlandia vodka to Coca-Cola HBC, while Beam Suntory’s outgoing CEO, Albert Baladi, told Global Drinks Intel in July that the group is open to selling brands deemed surplus to requirements. Closer to home, Pernod Ricard found a buyer – Stock Spirits – for blended Scotch Clan Campbell earlier this summer, while Paddy Irish whiskey found a new home at Sazerac in 2016.
Why Finlandia is surplus to Brown-Forman’s requirements – Comment
