Pernod Ricard is looking to sell wine assets… or is it?
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Pernod Ricard is looking to sell wine assets… or is it?

In the latter half of this week, rumours spread like wildfire throughout the media that spirits giant Pernod Ricard was looking to sell its wine assets. The “news” started with an article on Bloomberg, which asserted that the company was “considering a sale of its wine division, which includes Australia’s Jacob Creek and Spain’s Campo Viejo labels.” The article attributed these rumours to anonymous sources that were “familiar with the matter.” However, according to industry publication Just Drinks, the chances that the rumour is true are low at best.

Pernod Ricard’s share price has risen by 11% year to date

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Source: Yahoo Finance

In a reply article on its website, the publication stated: "Well-placed sources who just-drinks spoke to this morning were unconvinced of Pernod's reported exit from wine, highlighting the full buyout of Helan Mountain in China's Ningxia province six years ago, as well as the purchase of Kenwood Vineyards in California in 2014.” Although it did add that the company had, more recently, “offloaded three wine brands, one winery and two vineyards in Argentina.”

Pernod Ricard itself is staying tight-lipped on the matter for now. In an email to Bloomberg, the company said: “As a matter of policy, the company doesn’t comment on rumour or speculation. The group is under no external pressure and has already mentioned several times that it intends to continue the dynamic management of its portfolio.”

According to the original article, the potential sale is still in its earliest stages. As we learn more, we’ll keep you informed.

Disclosure
Dominion holds Pernod Ricard in its Global Trends Luxury Fund.


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