US – French alcoholic beverage company Pernod Ricard has acquired a minority stake in wine and spirits company Sovereign Brands, starting off a long-term partnership aimed at creating business opportunities between Sovereign Brands and Pernod Ricard in the future.
Sovereign Brands creates new wine and spirits brands and boasts of an impressive portfolio of products including Luc Belaire sparkling wine and Bumbu rums. The company says it builds each of its brands “from the ground up”.
Following Pernod Ricard’s investment, the two groups will continue to operate independently as the agreement does not provide for changes in Sovereign’s day-to-day operations, management or distributor network.
“Sovereign Brands has demonstrated exceptional innovation and marketing skills. We are thrilled to partner with Brett and Brian Berish, two of the most innovative entrepreneurs of our industry,” said Alexandre Ricard, CEO of Pernod Ricard.
Sovereign Brands CEO Brett Berish, who co-founded the company with his brother Brian Berish, added: “Pernod Ricard is at the forefront of our industry for a reason: they are simply the best. We’re beyond excited to work with Alexandre Ricard and his talented team.”
Pernod confident about sales momentum this year
Meanwhile, the French spirits maker, has expressed confidence that its sales momentum would continue this year after a rebound in demand in China and the United States helped it to deliver stronger-than-expected annual profits.
Over the twelve months to June 30, Pernod Ricard’s sales reached 8.824 billion euros, an organic rise of 9.7%, reflecting a 16% jump in sales in the United States and a 14% rise in China.
In the fourth quarter, alone sales rose 57% from a year earlier, as bars and restaurants reopened in the United States and in Europe as COVID restrictions eased.
The spirit maker’s profits from recurring operations also jumped 18.3% to reach 2.423 billion euros ($2.86 billion).
With recurring cash flow at an historical high of 1.745 billion euros at end-June, Pernod Ricard said it would resume its 500 million euros ($590.60 million) buyback programme for the fiscal year 2021/22.
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