Source: A Sneak Peek from The Australian Financial Review
The Juice:
Pernod Ricard, the global wine and spirits behemoth, boldly moves in a dramatic wine saga twist. With plans now out in the open, they’ve enlisted two investment banking powerhouses to shape their Australia-New Zealand (ANZ) operations’ future, hinting at a leadership shuffle by year’s end.
Word on the vine is that this Paris-based giant has roped in Morgan Stanley and JPMorgan for this intriguing mission. Australia shines with renowned brands like Jacob’s Creek, St. Hugo, and George Wyndham, while New Zealand takes pride in Brancott Estate and Stoneleigh.
Come late October, expect sale alerts to buzz through inboxes, insiders hint.
Sound familiar? Flashback to 2019: Pernod Ricard showcased its Australian lineup, starring Jacob’s Creek, to eager bidders, with the same banking duo orchestrating the event. This segment then represented a 5% slice of global sales, with a sparkling $1 billion price tag. Heavyweights like The Carlyle Group’s Accolade Wines, PAI Partners, and Treasury Wine Estates were among the many who showed keen interest.
In the grand scheme, ANZ is a splash in Pernod Ricard’s vast treasure chest, especially with a 13% surge in net sales to a jaw-dropping €12.14 billion ($20.11 billion). Their royal vault houses legends: Chivas Regal, The Glenlivet, Jameson whiskey, Absolut, Wyborowa vodkas, and the trailblazing Pernod and Ricard pastis.
Jacob’s Creek, with its roots tracing back to 1847 in South Australia’s Barossa Valley, remains a crucial player in this tale, its global acclaim undeniable.
In related news, ASX-listed Australian Vintage, custodians of Tempus Two, McGuigan, and Nepenthe, navigate tumultuous wine waters, assessing their $100 million venture.
The Take From Our Cellar:
The wine world’s currents are unpredictable. Discerning buyers dominate, spirits thrive, and wine grapples with attracting the younger drinkers.
Luxury labels rise, and Jacob’s Creek sparkles in Pernod’s collection, leaving many to wonder if they’ll match their 2019 billion-dollar valuation.
For perspective, E. & J. Gallo spent $810 million in 2021 to acquire more than 30 Constellation wine brands and five wineries.
