Pernod Offloading 10-Million-Case Wine Business To Australia’s Accolade
July 17, 2024Pernod Ricard has agreed to sell its global wine business to Australian Wine Holdco, a consortium of institutional investors that owns Australian wine player Accolade Wines. Terms were undisclosed.
The business totals over 10 million 9-liter cases annually, and includes Jacob’s Creek, Orlando, and St Hugo from Australia; Stoneleigh, Brancott Estate, and Church Road from New Zealand; and Campo Viejo, Ysios, Tarsus, and Azpilicueta from Spain. The deal includes seven wineries around the world.
Pernod says the divestiture is meant to “further strengthen its premiumization strategy and to direct its resources to its portfolio of premium international spirits and Champagne brands that drive the growth of its business.” Pernod’s wine business accounts for around 4% of its total sales.
In the U.S., Pernod’s wine volume slipped to 1.4 million cases last year, according to Impact Databank, down from 1.8 million cases in 2019. Jacob’s Creek has been the largest still wine in the portfolio, down 16% to 271,000 cases last year, followed by Campo Viejo at 217,000 cases.
While volumes have been in decline, the deal will boost Accolade’s presence in the U.S., which has been limited up to now, despite its 34.5-million-case global volume, which ranks fifth among all wine marketers worldwide, according to Impact Databank. Accolade’s brands include Hardys, J-Harden, Banrock Station, Mud House, and House of Arras, among others.
Pernod is retaining its Champagne labels Mumm and Perrier-Jouet, which combine for 870,000 cases globally and 66,000 cases in the U.S., as well as California offshoot Mumm Napa and Sonoma’s Kenwood. Mumm Napa was at just under 380,000 cases in the U.S. last year, while Kenwood was at 134,000 cases.
The deal, which had been rumored to be progressing dating back to last fall, is subject to closing conditions and regulatory clearances and is expected to close in the second half of the year.—Daniel Marsteller
| Pernod Ricard – Top Six Wine Brands in the U.S. (thousands of 9-liter cases) |
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| Rank | Brand | Origin | 2022 | 2023 | Percent Change* |
|---|---|---|---|---|---|
| 1 | Mumm Napa | California Sparkling | 405 | 378 | -6.5% |
| 2 | Jacob’s Creek | Australia | 320 | 271 | -15.5% |
| 3 | Campo Viejo | Spain | 235 | 217 | -7.3% |
| 4 | Campo Viejo Cava | Spanish Sparkling | 171 | 163 | -5.0% |
| 5 | Brancott Estate | New Zealand | 136 | 138 | 1.5% |
| 6 | Kenwood | California | 189 | 134 | -29.1% |
| Total Top Six | 1,456 | 1,301 | -10.6% | ||
| * Based on unrounded data. Source: IMPACT DATABANK © 2024 |
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Tagged : Accolade, Campo Viejo, Jacob's Creek, Kenwood, Mumm, Mumm Napa, Orlando, Pernod Ricard, Perrier-Jouët, St Hugo
