A consortium plans to buy Perno Ricard's Australian, New Zealand and Spanish businesses. Photo / 123rf
A consortium plans to buy Perno Ricard's Australian, New Zealand and Spanish businesses. Photo / 123rf
An Australian consortium plans to combine its wholly-owned business Accolade Wines with international wine and spirits firm Pernod Ricard’s Australian, New Zealand and Spanish wine businesses.
The consortium of international institutional investors – dubbed Wine Holdco Ltd (AWL) – said it planned to create a more efficient andmore diversified global wine business.
AWL comprises comprises funds backed by Bain Capital, Intermediate Capital Group, Capital Four, Sona Asset Management, and Samuel Terry Asset Management.
Pernod Ricard’s New Zealand wine assets represent a “sizeable chunk” of the domestic wine industry, one industry analyst said.
The combined business will have a more diversified portfolio of highly complementary old and new world wine labels, operations in every continent, and be in a better position to meet the challenges facing the wine industry, providing a more certain and financially sustainable future for the business, AWL said.
Pernod Ricard assets to be included in the combined business comprise a wide portfolio of international brands operated with more than 10 million cases produced annually from three origins.
These included 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 assets were described as an integrated platform from vineyard to bottle including seven wineries.
AWL said Accolade Wines was a fully integrated business, managing the entire supply chain from grape to glass.
Church Road Winery chief winemaker Chris Scott in the Tukituki Valley vineyards which produce award-winning chardonnay.
Accolade’s portfolio included Hardys, Grant Burge, Banrock Station, St Hallett and Petaluma, as well as Mud House, Dolly Wines, Jam Shed, J-Harden and Wise Wolf by Banrock Station.
AWL spokesperson Joshua Hartz said Accolade Wines and Pernod Ricard had a long history as 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,” Hartz said in a statement.
“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,” he said.
The transaction is subject to regulatory approvals.
“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,” it said.
In a separate statement, Pernod Ricard said the move would strengthen its premiumisation strategy and direct its resources to its portfolio of premium international spirits and champagne brands.
“With this transaction, Pernod Ricard will sell its wine division to a player of global scale, with a route to market solely dedicated to the wine industry,” it said.
“Its wine brands will benefit from the focus required to achieve their potential, reinforce their position, and seize new opportunities around the world.”
The transaction is expected to occur in the first half of 2025.
Pernod Ricard’s portfolio of premium to luxury brands includes Absolut vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and Mumm and Perrier-Jouët champagnes.
Pernod Ricard’s consolidated sales amounted to €12,137 million ($21,185m) in 2023.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
