Pernod Ricard acquired the New Zealand labels in 2010 when it took over Montana Wines, which was later renamed Brancott Estate (file image). Photo: Pixabay
One of the world's biggest drinks companies is reviewing ownership of its three New Zealand wine labels, according to a media report.
The Australia Financial Review's Street Talk column has reported that Pernod Ricard, the world's second-largest wine and spirits producer, has hired two investment banks to review its Australia and New Zealand business.
The New Zealand brands are Church Road, Brancott Estate and Stoneleigh, which sit alongside well known Australian brands including Jacob's Creek.
The AFR gave no source for the report but said investment firms Morgan Stanley and JPMorgan were doing the review, with inquiries for the businesses to be invited in late October.
Pernod Ricard acquired the New Zealand labels in 2010 when it took over Montana Wines, which was later renamed Brancott Estate. In the year to June 2022, the businesses reported a profit of $14.4 million on sales of $332m, compared to the previous year's $17.6m profit and slightly higher sales. The group assets were valued at $601m.
The Paris-listed Pernod, put its antipodean assets on the block in 2019 but no sale eventuated. A current price tag of more than $1 billion has been put on the businesses.
It recently reported a 13 percent rise in sales to €12.1b (NZ$22.8b) but warned of slowing sales, particularly in China. Its global brands include Chivas Regal, Glenlivet and Jameson whiskies, Absolut vodka and Mumm champagne.
However in June, Pernod, through a US subsidiary, picked up a 14 percent stake in Auckland based non-alcoholic drink maker AF Drinks for an undisclosed sum.