Pernod Ricard targets US growth

Pernod Ricard has set its sights on growth in the US after announcing the completion of the sale of Lindauer and several other wine brands from Gisborne and Hawke’s Bay to a consortium of buyers made up of Lion Nathan and Indevin for NZ$88 million.

Following clearance from the New Zealand Overseas Investment Office, the transaction was completed on 22 December 2010.

The company is now targeting growth in the US as part of its long-term strategy to overtake Diageo as the world’s leading spirits group.

Pernod Ricard currently claims a 7.6% share of the US market as opposed to Diageo’s 12% and chief executive Pierre Pringuet told The Financial Times: “One of our challenges is to increase the size of Pernod Ricard in the US.”

Pringuet added that the group is taking a proactive approach to catching up with Diageo.

He said: “Waiting is not a positive attitude so rather than wait until the day we become number one, we decided to adopt a leadership mindset – that means being innovative.”

However, Pringuet insisted the group would not be making any acquisitions until it has sufficiently reduced the debt incurred through its 2008 purchase of Absolut Vodka producer Vin & Sprit.

“Until we have obtained an investment-grade rating, we are not going to make acquisitions,” he said. “That’s very clear, we’ve said it before and we’ll say it again. We are bold but we are prudent as well.”

Alan Lodge, 05.01.2011