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Pernod Ricard offloads Red Heart rum
Pernod Ricard has divested itself of another one of its non-core brands with the sale of South African rum Red Heart to domestic producer KWV.
KWV, one of South Africa’s biggest wine and spirits producers, has purchased the rum brand from the French multinational for an undisclosed sum.
Red Heart, which is available in original and spiced versions, has a strong presence in the South African market.
The sale marks KWV’s entry into the rum category, adding to its spirits portfolio which includes Paddy Irish Whiskey, Ponchos Tequila and Cruxland Gin.
KWV has said the acquisition is part of its strategic growth plan. The deal is set to be finalised on 22 August 2024, following the approval by the Competition Commission.
Offloading assets
Pernod Ricard’s sale of Red Heart is just the latest in a slew of sales of its non-core brands. The spirits giant sold a roster international wine brands to Australian Wine Holdco Limited (AWL), a consortium of institutional investors and owner of Accolade Wines, in July.
Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus and Azpilicueta were all included in the sale.
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.
African presence
Pernod Ricard has operated in South Africa for 30 years. The company has expanded its presence in the continent over the past 12 years to establish affiliates in Namibia, Kenya, Nigeria, Ghana, Angola, and Mozambique. The relocation of its head offices from Cape Town to Johannesburg in January 2020 united Pernod Ricard South Africa with Pernod Ricard Sub-Saharan Africa to establish the Pernod Ricard Sub-Saharan Africa Management Entity. The company employs just under 500 people across Africa, with around 300 employees based in South Africa.
Its Africa division also announced the appointment of Sola Oke as its new managing director for Africa, effective March 2024.
Last week, news outlet Tech in Africa reported that the French multinational had increased its stake in African e-commerce company Jumia. Pernod Ricard reportedly purchased 1.27 million shares, meaning it now owns a 7.5% stake in the company. Jumia is a Berlin-based technology company that is a marketplace, logistics service and payment service, operating throughout Africa. The logistics service enables the delivery of packages through local partners while the payment services facilitate the payments of online transactions.
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