Pernod Ricard considers sale of GH Mumm champagne amid portfolio shift
FRANCE – Pernod Ricard, the world’s second-largest premium drinks company, is reportedly exploring the sale of its champagne brand, GH Mumm, as part of a strategic move to refine its portfolio.
According to Reuters, the French company has engaged investment bank Rothschild & Co to assist with the potential divestiture.
The decision aligns with Pernod Ricard’s ongoing efforts to optimize its product offerings, following last year’s sale of several wine brands. The company continues to own Perrier-Jouët champagne brand, which is not being considered for sale.
According to sources familiar with the matter, GH Mumm’s potential sale could attract interest from major players in the beverage industry. The brand is valued at approximately three times its annual sales, with Pernod Ricard reportedly seeking no less than €600 million for the transaction.
In a statement to Reuters, Pernod Ricard confirmed that the process is a routine evaluation of its strategic options.
“Pernod Ricard regularly assesses and evaluates its strategic opportunities and is continuously exploring options, including divestments or the streamlining of businesses,” the company stated. However, it emphasized that no final decision has been made.
GH Mumm is one of the most recognized champagne brands, with a heritage dating back to 1827.
The brand owns 260 acres of grand and premier cru vineyards in France’s Champagne region and expanded to California in 1979 with the launch of Mumm Napa.
The brand is known for its “Only the Best” branding and its signature Cordon Rouge red ribbon label. Pernod Ricard acquired Mumm in 2005 as part of its joint takeover of Allied Lyons alongside Diageo.
The potential divestment comes amid broader challenges for the champagne sector. Economic pressures, including inflation in Europe, the United States, and China, have led to a decline in global demand for premium beverages.
Pernod Ricard has also faced financial headwinds, recently lowering its full-year sales forecast after reporting a 25 percent sales drop in China for the first half of its 2025 fiscal year.
The company now expects a low-single-digit decline in organic sales, adjusting its previous projection of a return to growth.
The decline was attributed to weak consumer demand, challenging macroeconomic conditions, and declining sales of Martell Cognac and Royal Salute Scotch whisky in China.
Pernod Ricard’s organic net sales fell by 4 percent to €6.176 billion during the quarter, with a 6 percent drop on a reported basis.
Additionally, the company has warned that trade tariffs between China and the United States could impact its business by an estimated €200 million (US$207 million) annually.
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