Alert, Pernod Looking to Sell Wine Division?
Pernod Ricard is reportedly considering selling its wine division, which includes the likes of Jacob’s Creek and Campo Viejo, according to sources familiar with the matter, reports Bloomberg.
Sources pegged Pernod’s wine business at roughly $500 million in sales. Those sources also described any deliberations to sell that end of the business as “preliminary.”
Pernod Ricard would not comment on the matter to the outlet.
According to Bloomberg, Pernod “began studying options for the division since before being targeted by Paul Singer’s Elliott Management Corp., one of the people said.” You’ll recall, Elliott has taken a 2.5% stake in Pernod, motivated by the belief that the company needs to make some changes to improve performance [see WSD 12-12-2018].
Pernod is not the only big supplier looking to potentially offload some of its wine business. We’ve reported previously that Constellation is also looking at some wine divestitures, particularly at the low end of the portfolio. At the CAGNY show in late February, we reported Constellation’s characterization that a sale is likely imminent [see WSD 02-21-2019].
We’ll be keeping our ears to the ground.
——- Sell Day Calendar ———
Today’s Sell Day: 9
Sell days this month: 21
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1