Could Coca Cola try to buy Pernod Ricard’s wine brands?
Coca Cola is reportedly looking to acquire Pernod Ricard’s wine brands, alongside Accolade Wines’ owner Carlyle Group.
Pernod Ricard announced plans to sell its wine businesses, which include Jacobs Creek, based out of the Barossa Valley, and other labels including Brancott Estate, Kenwood and Campo Viejo, earlier this year.
Speaking at a press briefing in February this year, CEO and chairman Alexandre Ricard said he would continue to “dispose” of brands that “no longer fit” within the drinks giant’s portfolio, following the sale of Argentinian wine brand Graffigna to Chile’s VSPT in January.
Analysts estimate that the entire portfolio could be worth US500 million.
Now, the Australian claims that Coca Cola Amatil could join forces with private equity group Kohlberg Kravis Roberts in the contest to buy the wine operations of Pernod Ricard, pitting itself against Carlyle Group, which owns Accolade Wines.
It would be Coca Cola’s first foray into the wine business, but the company has already started to enter the alcohol market, with the launch of a fruit-flavoured alcopop in Japan.
The drinks giant continuesto make acquisitions in spirits, and in April Pernod Ricard signed a deal with Biggar & Leith to acquire its premium Italian gin brand, Malfy, for an undisclosed sum.
Neither Coca Cola Amatil nor Pernod Ricard immediately responded to the drinks business’ request for comment.