Pernod Ricard has upped its holding in US-based Sovereign Brands just over a year after first connecting with the Luc Belaire sparkling wine and Bumbu rum owner.
Back in September last year, Pernod acquired a minority stake in Sovereign. The transaction, for an undisclosed size or fee, was presented at the time as being the “first step of a long-term partnership aimed at creating business opportunities … in the future, such as exploring potential common industrial and commercial projects”.
The group has followed the purchase this week with a “significant increase” in its stake, again for an undisclosed size or fee, While a spokesperson declined to provide further details, Global Drinks Intel understands Pernod remains a minority stakeholder.
At the same time, Sovereign will be factored into Pernod’s results going forward, with the unit expected to contribute around 3% to the group’s operating profits on a full-year basis.
“Over the last 12 months,” today’s statement noted, “Pernod Ricard and Sovereign Brands have already significantly accelerated the growth of Sovereign’s … portfolio including French super-premium sparkling wine Luc Belaire (circa 1m nine-litre cases in 2021), a range of Caribbean rums sold under the Bumbu brand (circa 300,000 nine-litre cases in 2021), the Brazilian gin McQueen and the Violet Fog and the French liqueur Villon.
“Both companies have also initiated a number of joint incubation projects, with an initial brand planned for a full-scale launch in the coming months.”
Earlier this week, Global Drinks Intel published an exclusive interview with Pernod’s chief digital officer, Pierre-Yves Calloc’h.
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