Last Wednesday, more than 120 employees of Rowland Flat – the winery responsible for producing Pernod Ricard wine brands such as Jacob’s Creek and St Hugo – conducted a four hour strike to discuss the future of their jobs. The strike occurred just six days after Jacob’s Creek won three out of the available six Fan Favourite Brand Awards at the Australian Drinks Awards 2024, and exactly one week after Pernod Ricard announced that it had successfully reached an agreement with Wine Holdco Limited – the consortium of international institutional investors that owns Accolade Wines – concerning the sale of 10 of its wine brands.
This morning, Drinks Trade recently reached out to Kristy Rutherford, Marketing Director for Pernod Ricard Pacific, to discuss the brand’s recent successes and what trade should expect moving forwards.
Rutherford said, “we are definitely thrilled to have won three of these awards. I think that as a business we believe strongly in the quality and the taste of our wines, so I’d say it wasn’t a surprise but more of a proud validation that people and consumers see the wines the way we do.”
Jacob’s Creek was named Australia’s Fan Favourite White, Rosé and Sparkling wine producer for 2024. When asked how Jacob’s Creek successfully won awards across three very different categories, Rutherford mentioned the importance of its partnerships and its well-earned status as one of Australia’s most trusted wine brands.
“We had Jacob’s Creek this year as a partner of the FIFA Women’s World Cup, and that type of property is a really good opportunity to have an impact across a broad portfolio. You can activate in store across white, rosé, sparkling behind one property and get an impact that’s relevant for a very broad audience,” she said.
“[Also], in this current economic environment in particular, consumers are being reminded of just how important quality is. And trusted brands.”
The Jacob’s Creek brand is currently well positioned to cater to cost of living pressures currently being experienced by many Australian consumers.
“With the current economic condition we’re actually seeing a bit more swing back towards wine because people are seeing the value in wine propositions,” said Rutherford.
“You can you can go into a store and see a proliferation of wine bottles nowadays and it’s becoming more and more as time goes on. [Consumers] are looking for that that signal of quality and taste so they know they’re not going to be disappointed when they buy something.
“Interestingly, what we’ve seen with Jacob’s Creek is quite often it can attract a younger consumer because of that trust-base and because they’ve heard of the brand.”
The three recent Australian Drinks Awards accolades might be the last for Jacob’s Creek under Pernod Ricard’s ownership following last week’s sale to Wine Holdco Limited. On Wednesday, uncertainty surrounding the future for Rowland Flat winery workers led to a strike supported by the United Workers Union. Tim Kennedy, the Union’s National Secretary, cited the discrepancy between inflation, net profits, and wage growth as a key factor: “United Workers Union members around the country have had to push very hard for cost-of-living wage increases over the last two years,” he said.
The Union also cited Pernod Ricard’s $5.6 billion global net profit in 2023, however, it did not recognise the fact that wine only contributes to roughly 4% of the businesses revenue. Last week, Pernod Ricard said its exit from wine will help channel resources into the “premium international spirits and Champagne brands that drive the growth of its business.”
When Drinks Trade inquired about Wednesday’s protests, Pernod Ricard Winemakers provided the following statement: “we truly believe that we provided a fair and reasonable offer to our employees and are disappointed that we have been unable to reach an agreement at this stage. As a business, we are committed to maintaining an open dialogue with our employees to find a resolution that balances employee needs with the current industry and business requirements. This action will not affect production and will have no material impact on our business.”
When Drinks Trade asked what consumers and industry workers should expect following the transition, Rutherford said, “our business and all the teams involved will be working with retailers and our partners to ensure a seamless transition, so I think as far as retailers and consumers are concerned, the aim is that they can still access the great wines of quality that we currently have into the future.
“Regardless of who owns it in the future, it’s still a very special brand with great heritage that I think a lot of people within the Pernod Ricard business will think fondly of. It’s always going to be a great legacy brand for us.”
Pernod Ricard’s shift away from wine will allow the global company to double down on its spirits and Champagne portfolios. This includes its recently established North American Distillers global brand company, which marks the latest progression in a series of incremental increases in investment into the American whiskey sector.
In the Pacific region, Kristy Rutherford says “it is a real opportunity for us to put even more focus behind our premium spirits, our RTDs, and our Champagne portfolio… We’ve [recently] launched a new brand called Skrewball – it’s a peanut butter whiskey liqueur – that’s a big focus. Bumbu rum is another new one we’re very focused on.
“There’s a real growth in that flavoured whiskey and stronger tasting rum space, particularly with a younger consumer. We’re seeing an amazing response from the trade since we’ve launched these products.”
