Pernod sells wine portfolio to Accolade

Pernod Ricard has sold its international wine brands to Australian Wine Holdco Limited (AWL), a consortium of institutional investors and owner of Accolade Wines.

The transaction includes the sale of its portfolio of international wine brands owned and produced by Pernod Ricard Winemakers, with producers located in Australia, New Zealand and Spain, and follows months of speculation on a deal.

It includes Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus and Azpilicueta, with the wine portfolio also containing seven wineries.

According to Pernod, the deal will allow it to strengthen its premiumisation strategy and direct its resources to its portfolio of premium international spirits and Champagne brands that drive the growth of its business, it said.

Wine sales were only a small part of Pernod’s overall sales last year. In its latest quarterly figures, the French group reported wine sales falling by between 9% and 10% compared with last year, mainly driven by declines in USA and UK.

Overall, wine sales, including those sourced from Australia as well New Zealand, Spain and South America comprise just 4% of its turnover.

It remains to be seen how the deal will play out in terms of Pernod Ricard UK’s operation, especially where wine, including Brancott Estate, Campo Viejo and Jacob’s Creek have played a major role, alongside the spirits portfolio.

The closing of the transaction remains subject to the normal regulatory hurdles, and the firm stated that it expects the deal to be completed in the second half of 2025.

Accolade

AWL, which is the Bain-led consortium of international institutional investors that took over Accolade Wines earlier this year, said that the deal will provide a “more financially sustainable future” for the business.

The Pernod Ricard wine portfolio will complement Accolade’s portfolio which includes Hardys, Grant Burge, and Banrock Station. Previously it had been speculated in reports that Pernod Ricard was looking to dispose of its wine business in Australia because of the low return on capital invested it generated.

The Australian Financial Review had also previously reported that Pernod Ricard was in talks to sell its wine interests in the country to Accolade for AU$500 million (£265m), although the sum for this current deal is undisclosed. But it will give Pernod significant firepower moving forwards for growth.

AWL spokesperson Joshua Hartz said: “Both Accolade Wines and Pernod Ricard have a long, proud history as world-class wine producers.

“Combining Accolade Wines with the Pernod Ricard assets will create a more certain and financially sustainable future for the business, allowing us to better serve our customers, in more segments and more geographies.

“Backed by AWL, the combined business will be better able to adapt to changing consumer tastes and meet the structural challenges facing the global wine industry. AWL will work with relevant regulators to progress the combination, and if approved, support management to focus on a smooth future integration of the businesses.”

Sainte Marguerite

The deal will also help to explain why Pernod’s recent addition of a majority share in the family-owned Côtes-de-Provence rosé brand Château Sainte Marguerite has been integrated into the group’s Champagne portfolio — rather than its general wine portfolio.

The transaction for Sainte Marguerite, was described as the result of Pernod Ricard’s continuous assessment of its strategic opportunities, and was in line with its longstanding policy to deliver sustainable value for its shareholders, employees, clients and partners.

It would appear now that the move was also mainly about Pernod’s strategy towards premiumisation of its portfolio, with it identifying that Sainte Marguerite shared “the same strong quality and excellence,” as its Champagne brands, Perrier-Jouët and Mumm.

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