Pernod Ricard sells four brands to Norwegian drinks group

The transaction should be completed early in 2009 after obtaining the agreement of the relevant competition authorities, namely including approval by the European Commission.

Under the agreement, Arcus Gruppen will acquire the brands Grönstedts

Cognac, Star Gin, Red Port and Dry Anis, which together had combined

sales of approximately SEK 54 million (EUR 5 million) in 2007, it was reported.

“These four brands will give Arcus Gruppen a stronger presence in Sweden as well as an opportunity to grow in Finland. The deal will also generate significant synergy gains in the Norwegian product portfolio," Jan Tore Fosund, CEO of Arcus Gruppen was reported as saying.

Financial details of the deal were not disclosed.

Arcus Gruppen is a Norwegian company and an 83 percent subsidiary of the Swedish investment company Ratos. Arcus Gruppen is Norway’s leading wine and spirits producer. The company was formed in 1996 on the initiative of the Norwegian government and privatised in 2001. The group’s best-known brands include Braastad Cognac, Vikingfjord Vodka, Løiten and Linie Aquavit. Its pre-tax profit in 2007 was NOK 108 million (EUR 11.5 million).

Compared with Pernod Ricard, Arcus Gruppen is a lightweight company.

Pernod Ricard, which was created by the merger of Pernod and Ricard in 1975, has undergone rapid development since, both through organic growth and acquisitions. The purchase of part of Seagram (2001), the acquisitions of Allied Domecq (2005) and Vin & Sprit (2008) have made Pernod Ricard the world’s number two drinks company with consolidated sales of EUR 6.6 billion in 2007/08.

Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut vodka, Ricard pastis, Ballantine’s, Chivas Regal and The Glenlivet Scotch whiskies, Jameson’s Irish Whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well as Jacob’s Creek and Montana wines.

The group also owns 70 distribution companies in key market and employs a workforce of more than 19,300 people.

Caption (below): Pernod Ricard has 15 global brands alone. So it will not miss four Nordic brands all that much. Photo: Pernod Ricard