Pernod Ricard strengthens its partnership with sovereign brands, strengthens its exposure to the American market and boosts its pipeline of consumer-centric innovations


PARIS, October 13, 2022–(BUSINESS WIRE)–Regulatory news:

Pernod Ricard (Paris:RI) today announces the significant increase of its minority stake in Sovereign Brands’ portfolio of super premium wines and spirits brands. This additional investment will strengthen the already successful and ambitious long-term partnership initiated in September 2021.

Following this transaction, Pernod Ricard will fully consolidate Sovereign Brands in its financial statements due to various call options through which Pernod Ricard may consider further increasing its stake in the partnership in the future.

Sovereign Brands is a family business founded by brothers Brett and Brian Berish, who are among the industry’s most innovative and creative alcoholic beverage brand builders in the world’s largest spirits market, the United States. It is currently one of the fastest growing companies in the alcoholic beverage industry. The integration of the Sovereign Brands should be accretive to Pernod Ricard’s operating margin*.

Over the past 12 months, and as part of their long-term partnership, Pernod Ricard and Sovereign Brands have already significantly accelerated the growth of Sovereign’s portfolio of exciting brands, including super premium French sparkling wine Luc Belaire (about 1 million cases of 9L in 2021)a range of Caribbean rums sold under the brand bubu Mark (about 300K 9L cases in 2021), brazilian gin McQueen and the Purple Fog and French liquor Villon. The two companies have also launched a number of joint incubation projects, with a first brand slated for a large-scale launch in the coming months.

This additional investment is in line with Pernod Ricard’s strategic plan Transform and Accelerate and reflects its ambition to further enhance the development of its consumer-centric portfolio and to invest in anticipated growth categories. This partnership is a winning combination of like-minded companies committed to building global brands that tap into cultural trends and drive strong brand advocacy.

Closing, which is expected to occur in November 2022, remains subject to satisfaction of customary closing conditions, including regulatory clearances.

Our partnership with Sovereign Brands has already proven very successful, with brands such as Bumbu and Luc Belaire now reaching ever-growing numbers of consumers in the United States and abroad. I believe we are a perfect fit as two consumer-centric companies with a shared commitment to creativity, innovation and brand building.” says Alexandre Ricard, Chairman and CEO of Pernod Ricard.

Brett Berish, CEO of Sovereign Brands, said: “In the year that has passed since the announcement of our partnership with Pernod Ricard, everything we could have hoped for from this relationship has come true. With the upcoming launch of our first innovative joint brands, this is the perfect time to deepen our partnership. “.

*Accretive effect on Pernod Ricard’s current operating profit estimated at around +3% full year

About Pernod Ricard
Pernod Ricard is the world’s second largest producer of wines and spirits with consolidated sales of €10,701 million for the FY22 financial year. The Group, which owns 17 of the top 100 spirits brands, has one of the most prestigious and comprehensive portfolios in the industry with more than 240 premium brands spread over more than 160 markets. Pernod Ricard’s portfolio includes Absolut Vodka, pastis Ricard, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and even Mumm and Perrier-Jouët champagnes . The Group’s mission is to unleash the magic of human ties by bringing “Good Times from a Good Place”, in accordance with its Sustainable Development and Responsibility roadmap. Pernod Ricard’s decentralized organization enables its 19,480 employees to be ambassadors in the field of its culture of voluntary and inclusive conviviality, bringing people together in a meaningful, sustainable and responsible way to create long-term value. In executing its strategic plan, Transform & Accelerate, Pernod Ricard is now leveraging its “Conviviality Platform”, a new growth model based on data and artificial intelligence to meet ever-changing consumer demand. .
Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.

About Sovereign Marks
Sovereign Brands is a family-owned international wine and spirits company headquartered in the United States. The company is owned and operated by brothers Brett and Brian Berish. Sovereign has a portfolio of successful brands, including Luc Belaire, a range of successful French sparkling wines, which has gained global acclaim for its exquisite taste and striking packaging, and is available in over 80 countries worldwide. The company’s portfolio also includes McQueen and the Violet Fog, an extraordinary gin from Jundiaí, Brazil, and Bumbu, a critically acclaimed line of rum products. The latest release from Sovereign is Villon, an exquisite French liqueur. The company plans to launch new brands and extensions to its portfolio in 2023 and beyond.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20221013005753/en/

contacts

Contact Pernod Ricard

Investor Relations
Florence Tresarrieu / Global SVP Investor Relations and Treasury
+33 (0)1 70 93 17 03

Edward Mayle / Director of Investor Relations
+33 (0)1 70 93 17 13

Charly Montet / Head of Investor Relations
+33 (0)1 70 93 17 13

Media
Emmanuel Vouin / External Engagement Manager
+33 (0)1 70 93 16 34

Jessica Whyte / International Press Relations Manager
+33 (0)1 70 93 24 23

Contact Sovereign Brands:
Sophie Lawrence, Marketing & Communications Director
+1 212 343 8366

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