Pernod Ricard has sold its international wine business to the owner of Accolade Wines for an undisclosed sum, creating a new global wine company named Vinarchy.
The successful completion of the sale to Australian Wine HoldCo sees both companies combining their wine assets, with Pernod’s portfolio of established wines from its vinyards and wineries across Australia, New Zealand and Spain – such as Jacob’s Creek, St Hugo and Kenwood – now sitting alongside Accolade brands including Hardys and Jam Shed.
All brands will now be fully owned and operated by new company Vinarchy, which describes itself as a “new global wine company and future industry leader”.
The deal, which was initially announced last year and teased last week, is effective immediately. However, Pernod will continue to distribute its wine portfolio for the immediate future, ensuring a smooth transition as the businesses merge over the coming months.
Vinarchy executive chairman Ben Clarke said Vinarchy would bring scale and innovation to global winemaking, offering an “exceptional portfolio of leading brands” as it looked to “redefine wine”.
“The global wine industry faces serious structural challenges,” he added.
“Global wine consumption has been declining for years, driven by changing consumer preferences and a shift to lower-alcohol drinks. Vinarchy will be bold and imaginative in meeting these challenges.”
The sale marks a significant downsizing of Pernod Ricard’s UK business, where its brands deliver combined off-trade sales of more than £160m [NIQ 52 w/e 24 April 2024].
Pernod has said that the sale will allow it to focus on its premium international spirits and champagne brands, “driving future growth” of its business as part of its move to become an entirely spirits-focused company. The Paris-headquartered group has also said it would be open to selling champagne label GH Mumm.
Alongside the sale of its wine business, Pernod Ricard is seeking cost savings of around €1bn to offset declining sales, after it reported a larger than expected sales decline in its latest trading update.
No comments yet