Pernod Ricard has announced plans to significantly increase its stake in Sovereign Brands.
This additional investment will strengthen the two company’s long-term partnership and will enhance Pernod Ricard’s exposure to the US market.
The move comes after Pernod’s September 2021 announcement that it had acquired a minority stake in Sovereign Brands.
At the closing of this transaction, expected to close in November, Pernod said it will consolidate Sovereign Brands in its financial statements due to various call options through which Pernod Ricard may look to further increase its stake in the partnership in the future. Closing remains subject to fulfilment of customary closing conditions, including regulatory clearances.
During the last 12 months, the partnership has supported the growth of Sovereign’s exciting brand portfolio including French super-premium sparkling wine Luc Belaire (approximately 1 million 9L cases in 2021) and a range of Caribbean rums sold under the Bumbu brand (approximately 300,000 9l cases in 2021). Both companies have also initiated a number of joint incubation projects, with an initial brand planned for a full-scale launch in the coming months.
This additional investment is in line with the Pernod Ricard strategic plan Transform and Accelerate and reflects its ambition to further enhance its consumer-centric portfolio development and invest in anticipated growth categories.
“Our partnership with Sovereign Brands has already proven to be very successful, with brands such as Bumbu and Luc Belaire now reaching an ever-growing number of consumers in the US and abroad. I believe we are perfectly matched as two consumer-centric companies with a shared commitment to creativity, innovation and brand building,” said Alexandre Ricard, chairman and CEO of Pernod Ricard.
Brett Berish, CEO of Sovereign Brands, stated: “In the year since we first announced our partnership with Pernod Ricard, everything that we could have hoped for from the relationship has come to pass. With the upcoming launch of our innovative first joint brands together, it’s the perfect time to deepen our partnership.”
© FoodBev Media Ltd 2022
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