Pernod Ricard has said the sale of its wine business to Accolade Wines owner Australian Wine Holdco Limited (AWL) is likely to complete “in the next week”.
“Our expectation is that it will happen this spring,” CFO Hélène de Tissot told investors earlier today (17 April). “Now, spring started two days ago. We are very confident it is very likely this will happen in the next week but [definitely] before the end of the fiscal year.”
The offload of brands including Brancott Estate, Jacob’s Creek and Campo Viejo was announced last July. It is part of a drive by Pernod Ricard to become an entirely-spirits focused company – the Paris-headquartered group is also open to selling champagne label GH Mumm.
The disposal represents a significant downsizing of Pernod Ricard’s business in the UK, where Campo Viejo, Brancott Estate and Jacob’s Creek deliver combined off-trade sales of more than £160m [NIQ 52 w/e 24 April 2024].
Read more: Why Pernod Ricard’s wine disposal will diminish its UK presence
Alongside the sale of its wine business, Pernod RIcard is seeking to find cost savings of around €1bn to offset declining sales.
Over half of the savings at a global level would be realised this financial year, de Tissot revealed.
“That’s why we have confidence of sustaining operating margin without compromising in terms of investment,” she added.
De Tissot’s comments came after Pernod Ricard reported an organic net sales decline of 3% in its fiscal third quarter, slightly below expectations of a 2% dip.
Performance was affected by “new customs clearance procedures” and a temporary halt to production in India, as well as weakness on cognac, driven by the suspension of duty-free sales in China, Pernod Ricard said.
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