Pernod Ricard completes the acquisition of Absolut vodka
Following the decision by the European Commission on 17 July 2008 to authorise Pernod Ricard to acquire all of the shares in V&S in accordance with the agreements concluded between the Kingdom of Sweden and Pernod Ricard on 30 March 2008, Pernod Ricard has completed the EUR 5.69 billion transaction, which brings the Absolut vodka brand into Pernod Ricard’s fold.
The acquisition of former state-owned V&S makes Pernod Ricard the second-largest player in the important U.S. market. In addition, the local brands V&S brings with it will add to Pernod Ricard’s critical mass in the Nordic markets.
In keeping with its decentralised structure, Pernod Ricard is putting in place two Swedish-based business units within V&S.
‘The Absolut Company’ has the worldwide responsibility of ABSOLUT including production. It becomes part of the brand-owner network, alongside Chivas Brothers, Martell Mumm Perrier-Jouët, Irish Distillers, Malibu-Kahlúa International, Pernod Ricard Pacific and the joint venture Havana Club International.
The other unit, ‘Pernod Ricard Nordic’, will market Pernod Ricard’s international and local brands in Sweden, Denmark, Finland, Norway, the Baltic States and Iceland. The company has been created by merging V&S Wine (the leading north-European wine producer and importer), V&S Distillers (the leading north-European producer and distributor of regional and local spirit brands) and Pernod Ricard Nordic Countries (the current Pernod Ricard distribution subsidiary in the Nordic region).
Bengt Baron, the current CEO of V&S, will assist with the integration of V&S into Pernod Ricard until 31 October 2008, when he will leave the Group.
A number of brands will be disposed of, such as the V&S brands Grönstedts Cognac, Red Port, Star Gin, Dry Anis and Lubuski Gin as well as the brand Serkova vodka, owned by Pernod Ricard.
In addition, the distribution agreements for Stolichnaya vodka outside Russia and for Royal Canadian whisky in Sweden will come to an end.
Commenting on the transaction’s success, Patrick Ricard, Chairman and CEO of Pernod Ricard, said: “After Seagram and Allied Domecq in 2001 and 2005, this is the third transformational acquisition for the Group. This operation will substantially accelerate the growth of both the ABSOLUT brand, which will benefit from the Group’s worldwide distribution network, and Pernod Ricard, which will strengthen its presence in the U.S. and in the Nordic markets.”
