Press Release Archives
Early Termination of the Distribution Agreement for Vin & Sprit Brands by Future Brands in the U.S., Effective October 1, 2008
Disposal of Cruzan rum brand to Fortune Brands
August 28, 2008 (Paris) – Pernod Ricard is pleased to announce the signing of an agreement with Fortune Brands for an early termination of the distribution by Future Brands of Vin & Sprit brands in the U.S., and in particular Absolut, effective October 1, 2008.
The initial contractual term of the distribution agreement for V&S brands by Future Brands, a joint venture company between V&S and Fortune Brands, was scheduled to end in February 2012. The joint venture partners have agreed to an early termination of this agreement on October 1, 2008, with Pernod Ricard paying to Fortune Brands a compensation of U.S. $230 million (¤156 million). Together with the termination of the distribution, V&S will also stop being a shareholder in Future Brands.
Absolut and the rest of the V&S portfolio will join Pernod Ricard USA’s portfolio of leading spirits and wines brands on October 1, 2008. The savings generated by stopping the payments of commissions to Future Brands, the quicker than anticipated implementation of cost synergies on our North American structures and the very positive impact of an immediate combination of our brand portfolios in the U.S. will more than offset the costs of exiting this distribution agreement.
Separately, and as part of the announced disposal plan, Pernod Ricard will sell the Cruzan rum brand and related assets to Fortune Brands for an amount of U.S. $100 million (¤68 million). Cruzan had been acquired in 2005 by V&S and has been since then a fast growing brand, reaching more than 750,000 9-liter cases in 2007 and a close to break even contribution after advertising and promotion costs.
Commenting on this agreement, Patrick Ricard stated:
“The immediate takeover of Absolut distribution in the U.S. by Pernod Ricard USA is excellent news for the Group. We will now market and distribute the leading imported spirit and premium vodka in the U.S., which greatly enhances our position. Through both our size and the quality of our portfolio, we are now the clear number two in the North American spirits market. These factors will allow us to strengthen our growth in this key market.
I also wish all the best and a continued success in the future for the Cruzan rum brand and the Cruzan teams within Fortune Brands.”
About Pernod Ricard
Created by the merger between Pernod and Ricard (1975), the Group has undergone sustained development, based on both organic growth and acquisitions. The purchase of part of Seagram (2001), the acquisitions of Allied Domecq (2005) and recently of Vin & Sprit (2008) have made Pernod Ricard the world’s co-leader in wines and spirits with sales of ¤ 6,589 billion in 2007/08.
Pernod Ricard holds one of the most prestigious brand portfolios in the sector: ABSOLUT Premium Vodka, Ricard pastis, Ballantine’s, Chivas Regal and The Glenlivet Scotch whiskies, Jameson Irish Whiskey, Martell cognac, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek and Brancott wines.
The Group favours a decentralised organisation, with comprise of 7 Brand Owners and 70 Distribution Companies established in each key market, and employs a workforce of more than 19,300.
In addition, Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption.
Pernod Ricard is listed on the NYSE Euronext exchange (Mnemo RI ; ISIN code FR0000120693) and is a member of the CAC 40 index.
About Pernod Ricard USA
Pernod Ricard USA is the premium spirits and wine supplier in the U.S., and the largest subsidiary of Paris, France-based Pernod Ricard SA, the co-leader of the global spirits and wine industry. The company is primarily focused on the high-margin segment of the industry, and has a leading premium brand in virtually all key spirits and wine categories. Our prestigious spirit brands include ABSOLUT® VODKA, Beefeater® Gin, Chivas Regal® Scotch, Hiram Walker® Liqueurs, Jameson® Irish Whiskey, Kahlúa® Coffee Liqueur, Malibu® Flavored Rum, Martell® Cognac, Seagram's® Extra Dry Gin, The Glenlivet® Single Malt Scotch Whisky and Wild Turkey® Bourbon. Our superior wine brands include Jacob's Creek® from Australia, Brancott Estate® from New Zealand, Campo Viejo® from Spain and Mumm Napa® from the United States. Our exquisite Champagne brands include G.H. Mumm™ and Perrier Jouët®.
Pernod Ricard USA invites you to visit our website www.pernod-ricard-usa.com, and reminds you to consume our products responsibly. The company has an active campaign to promote responsible drinking; for more information, please visit http://www.acceptresponsibility.org.