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
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.
Dominion holds Pernod Ricard in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.