Australian Wine Holdco Limited, owners of Accolade Wines, and Pernod Ricard have reached an agreement concerning the sale of 10 key wine brands. The deal, signed in Paris on Tuesday night, will see Australia’s second largest wine producer Accolade Wines acquire Pernod Ricard’s Australian, New Zealand, and Spanish wine brand portfolios.
“Both Accolade Wines and Pernod Ricard have a long, proud history as world-class wine producers,” said Joshua Hartz, spokesperson for Australian Wine Holdco Limited (AWL). AWL became the equity owners of Accolade Wines in February this year.
“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.”
The transaction includes the sale of Australian brands Jacob’s Creek, Orlando, and St Hugo, New Zealand brands Stoneleigh, Brancott Estate and Church Road, and Spanish brands Campo Viejo, Ysios, Tarsus and Azpilicueta. Accolade Wines will acquire all associated assets of each brand, which includes an integrated platform from vineyard to bottle alongside seven wineries.
The ten brands involved in the sale are responsible for producing more than 10 million 9 litre cases annually.
Today’s news follows more than two months of discussions between the two groups, with initial negotiations starting mid May. While a statement issued by the AWL to media today says “the transaction price for the Pernod Ricard assets is commercial in confidence,” the AFR reported in May that it believed the sale being discussed would surmount to a value of around $500 million.
The news also follows shortly behind Pernod Ricard’s establishment of a new global brand company, North American Distillers, reflecting a continuation of its developing investment in American whiskey over the past five years. According to the new CEO of North American Distillers Richard Black, “American whiskey is a dynamic spirits category, and our portfolio shows immense potential for future growth.”
In a press release issued today, Pernod Ricard reinforces that the sale represents a shift of resources away from wine to other focuses: “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,” it read.
“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. Its wine brands will benefit from the focus required to achieve their potential, reinforce their position, and seize new opportunities around the world.”
The move marks a significant step for Accolade Wines, which was taken over by now majority-shareholder AWL, a consortium of international institutional investors, in February this year to perform a recapitalisation plan to return the company to profit.
According to Hartz, “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.”
Following this and whilst reports of a potential Accolade Wines and Pernod Ricard deal were first emerging in early May, Accolade was still discussing a potential merger deal with Australian Vintage Limited. Shortly after on 22 May, Accolade said it was “not in a position to continue further discussions at this time,” leading Australian Vintage to temporarily suspend share trading and announce an emergency capital raise.
Australian Vintage has since successfully completed both parts of its $19.9 million equity raising, which saw its share value fall by more than 45% to their lowest level since July 2010. More recently, it has confirmed that it has successfully secured a purchaser for its Balranald vineyard in the Riverina, which is responsible for between 11,000 and 13,000 tonnes annually, and for its Lyndoch vineyard in the Barossa Valley, which was purchased last week by Seppeltsfield.
The Accolade Wines and Pernod Ricard transaction is currently awaiting final approval from the Australian Competition & Consumer Commission.
“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,” said Hartz.
If approved, Pernod Ricard has indicated that the sale will occur during H2 2025.
