French Spirits Giant Pernod Ricard Sells Majority of Wine Portfolio as It Pivots to Premium Offerings

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On Wednesday, the global alcohol firm Pernod Ricard — famous for brands like Jameson Irish Whiskey and Absolut Vodka —announced the sale of nearly a dozen international wine brands to Australian Wine Holdco Limited. The move represents the latest in an industry-wide trend as major players offload assets to focus on smaller rosters of premium spirits. The deal, which is expected to close by the end of 2025, will see AWL take control of 10 brands and seven wineries. Pernod is selling the following brands to AWL: Jacob’s Creek, Orlando and St Hugo from Australia; Stoneleigh, Brancott Estate and Church Road from New Zealand and Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain. The exact financials of the deal were not disclosed, though Pernod claims that the 10 brands collectively sell 10 million 9-liter cases per year. Wines still owned by Pernod following the acquisition include Perrier-Jouët champagne, Mumm and Kenwood.

"The transaction is the result of Pernod Ricard’s continuous assessment of its strategic opportunities, in line with its longstanding policy to deliver sustainable value for its shareholders, employees, clients and partners," the company stated in a news release. "This disposal will allow Pernod Ricard to further strengthen its premiumization strategy and to direct its resources to its portfolio of premium international spirits and champagne brands that drive the growth of its business."

Insiders weren't surprised by the deal. Though the company may be based in France, Reuters reported that wine sales comprised only 4% of Pernod Ricard's total sales in 2023. Its more lucrative ventures include Beefeater Gin, Chivas Regal Whisky, Havana Club Rum and various agave imprints including Del Maguey, Codigo 1530, Avion and Olmeca Altos. Pernod's sell-off strategy has picked up traction with other heavy hitters. Earlier this week, British alcohol giant Diageo followed up the back-to-back sales of Guinness Nigeria and Safari Liqueur with the offloading of Pampero Rum; similar to Pernod, Diageo's stated goal for the acquisitions was to focus on premiumization. The trend coincides with a discouraging bear market for the international spirits industry. Pernod, Diageo and rivals like Remy Cointreau all experienced a stock surge at the onset of COVID-19 thanks to a rise in at-home spending. The boom has since cooled down as discussions of rising interest rates and global trade tensions grip the market. Instead of focusing on a larger spread of cheaper brands, industry leaders are betting on a trim selection of expensive price tags to overcome the sales slump. [newsletter-promo]