Wine and spirits firm Pernod Ricard acquires stake in Jumia to grow footprint in Africa

AFRICA – French beverages distillery and the world’s second largest wine and spirits company has said that it has invested in Jumia, the leading ecommerce player for an unspecified stake to strengthen its position in spirits and wines on the continent.

The investment in Jumia strengthens their partnership and will see Pernod Ricard, which is present in 13 African countries become a strategic shareholder in the African online retail platform.

The two companies will develop innovative distribution strategies on the African continent.

Pernod Ricard is looking to leverage on Jumia’s muscle in digital platform solutions, products and services logistics, skills and online payment systems.

The funding from Pernod Ricard positions Jumia to consolidate its regional leadership, and will allow Pernod Ricard to benefit from new opportunities to distribute its products online on the continent.

 “We are very proud to welcome Pernod Ricard as a new strategic partner of Jumia.

This investment is an acknowledgement of the growth and innovation that Jumia has achieved since 2012,” said Sacha Poignonnec and Jérémy Hodara, co-CEOs of Jumia.

Founded in 2012, Jumia claims to be the leading Pan-African e-commerce platform active in 14 African countries.

“Pernod Ricard has made Africa its new frontier, as shown by the successive openings of subsidiaries over the last few years.

Our strategy is consumer-oriented and we strive to transform to strenghten our growth in this very promising continent.

Jumia is a partner of choice as digital and e-commerce represent real strategic accelerators in this Region for us,” said Gilles Bogaert, Pernod Ricard’s EMEA LATAM CEO.

Confident about Africa

The French spirits maker is banking on Africa for growth where it has increasingly expanded its footprint, motivated by growing middle class and economy.

South Africa, a country it debuted in 1993, has been a major contributor to company profits from the continent, where macroeconomic conditions, political instability and volatile economic conditions have proved unfavorable to businesses.

The group claims a spirits market share of 12% in value in South Africa, ranking number two behind British rival Diageo.

In 2012, it began a focus on Africa as a new growth area for its Jameson Irish whiskey, Absolut vodka and Martell cognac brands, when China started presenting a slow market demand.

Pernod is now present in Namibia, Kenya, Nigeria, Ghana, Angola and Mozambique, employing more than 500 people in Africa.

The group cites the African expansion is driven by favourable demographics, the potential for increased per-capita consumption as the economy improves, and a consumer desire for status that increases the lure of international brands.

According to research firm, Euromonitor, Pernod’s market share for spirits by volume in Africa plus the Middle East is 4% compared to 15.5% for Diageo.

The partnership comes after the two teamed up in Kenya and Ghana to launch a one-hour alcohol delivery service through an app called Jumia Party.

Pernod Ricard said it will be able to rely on this network to develop the presence of its brands in the out-of-home segment.

“Our business relationship with Jumia traces back to 2016 with the successful launch of Jumia-Party, Jumia’s e-commerce platform based on the catching idea ‘Wedeliver. You Party’, and centered on consumption moments.

This innovation has experienced solid growth in cities such as Lagos, Nairobi and Accra.

With this reinforced strategic partnership, Pernod Ricard will be able to offer its large portfolio of Premium brands to a greater number of consumers in Africa”, said Paul-Robert Bouhier, President of Pernod Ricard Sub Saharan Africa.

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