Australian Wine Holdco Limited (AWL) – which owns Accolade Wines – has agreed to buy Jacob’s Creek and other wine assets from French-based drinks group Pernod Ricard.
AWL – owned by a consortium of international institutional investors – says it wants to create a “more efficient and more diversified” global wine business by combining wholly-owned Accolade with Pernod Ricard’s Australian, New Zealand and Spanish wine businesses.
“The combined business will have a more diversified portfolio of highly complementary old and new world wine labels, operations in every continent, and be in a better position to meet the challenges facing the wine industry, providing a more certain and financially sustainable future for the business,” AWL says in a statement.
“The Pernod Ricard assets to be included in the combined business comprise a wide portfolio of well-known and loved international brands operated by Pernod Ricard Winemakers with over 10 million nine-litre cases produced annually from three origins.”
These include Jacob’s Creek, Orlando and St Hugo from Australia, Stoneleigh, Brancott Estate and Church Road from New Zealand and Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain.
Pernod Ricard has owned Jacob’s Creek since 1989.
“The assets are an integrated platform from vineyard to bottle including seven wineries,” the statement says. “Accolade Wines is a fully integrated business, managing the entire supply chain from grape to glass.”
Accolade’s existing portfolio includes Hardys, Grant Burge, Banrock Station, St Hallett, Petaluma, Mud House, Dolly Wines, Jam Shed, J-Harden and Wise Wolf by Banrock Station.
Pernod Ricard – whose famous spirits brands include Absolut, Chivas Regal, Ballantine’s, Malibu and Beefeater London – says, “This disposal will allow Pernod Ricard to further strengthen its premiumisation strategy and to direct its resources to its portfolio of premium international spirits and Champagne brands that drive the growth of its business.
“The transaction is the result of Pernod Ricard’s continuous assessment of its strategic opportunities, in line with its longstanding policy to deliver sustainable value for its shareholders, employees, clients and partners.
“With this transaction, Pernod Ricard will sell its wine division to a player of global scale, with a route to market solely dedicated to the wine industry.
“Its wine brands will benefit from the focus required to achieve their potential, reinforce their position, and seize new opportunities around the world.
“Closing of the transaction remains subject to fulfilment of customary closing conditions, including regulatory clearances, and is expected to occur early next year.”
Accolade was in talks with the struggling Australian Vintage but eventually walked away.
The Carlyle Group paid $1 billion for Accolade in 2018 but the company is now controlled by US-based company Bain Capital.
The deal will need approval from the Australian Competition & Consumer Commission.
In May members of the CCW Cooperative in the Riverland voted to reject a proposal from Accolade to buy out red wine contracts.
Jacob’s Creek began in 1847 when Johann Gramp planted his first vineyard on the banks of Jacob’s Creek at Rowland Flat and founded the Gramp & Sons winery.
The first Jacob’s Creek wine was released in 1976 and the brand soon became an international hit.