Pernod Ricard sells off Jacob’s Creek and other wines

Pernod Ricard is selling its international wine brands, including Jacob’s Creek and Campo Viejo. After disappointing quarterly figures, the drinks group wants to focus more on champagnes and spirits.

90 million litres of wine a year

The deal includes several wine brands known worldwide, like Jacob’s Creek, Kenwood Vineyards and Bodegas Campo Viejo. These are wines from Australia, New Zealand and Spain, for which Pernod Ricard owned the entire production chain: from the vineyards of the seven wineries to bottling, accounting for 90 million litres of wine a year.

The acquirer is the financial investment consortium Australian Wine Holdco Limited, which includes Bain Capital and Capital Four. The purchase price was not disclosed. The transaction comes at a time when the global wine market is under pressure from changing consumer preferences and increasing competition. Whereas consumers treated themselves to a bottle of fine wine during the Covid period, for example, they are now cutting back more.

For Pernod Ricard, the decision is part of a strategic review aimed at strengthening its core business and profitability. The group wants to focus more on premium brands, especially in the champagne and spirits categories, as sales stagnated unexpectedly last quarter, mainly due to more sluggish consumption in the United States and China.