Pernod Ricard sells Domecq as it “simplifies portfolio for growth”

Pernod_Ricard_logos_270x270Pernod Ricard has sold its Domecq brandies and wines brand to Bodega Las Copas, a 50/50 joint venture between Grupo Emperador Spain and González Byass.

The French drinks company said the disposal was in line with its strategy “to simplify its portfolio for growth and focus on its priority spirits and wines brands”.

The transaction includes the brand portfolio of Mexican brandies Don Pedro, Presidente and Azteca de Oro as well as the winery related to the production of Mexican wines in Ensenada. It also includes the relevant inventories of the Domecq brands in several markets, including Spain, the USA, Belgium and the Netherlands, among others.

Bodega Las Copas said the acquisition reinforced its position in the global brandy category. Grupo Emperador Spain is a wholly owned subsidiary of Asia-based brandy company Emperador.

The closing of the transaction is subject to customary conditions, including clearance by the Mexican anti-trust authorities. It is expected to be finalised before the end of the fiscal year 2016/2017.

Pernod Ricard was advised in the transaction by BBVA bank and Spanish law firm Cuatrecasas. Bodega Las Copas was advised by Uría Menéndez, another Spanish law firm, and Galicia Abogados, a Mexican law firm.

Food & Beverage The Magazine eZine