 |
Glittering prize: This latest Absolut gift pack is now part of the Pernod Ricard stable. The acquisition of V&S enables Pernod Ricard to assume co-leadership of the global wine and spirits industry |
FRANCE. Pernod Ricard has completed the acquisition of V&S Vin & Sprit AB following the decision by the European Commission earlier this month to authorise the French drinks group to acquire 100% of the shares. The agreement to acquire the brand owner of Absolut vodka was originally concluded on 30 March 2008 between the Kingdom of Sweden and Pernod Ricard.
The transaction is valued at €5.69 billion, including debt. The acquisition of V&S enables Pernod Ricard to assume co-leadership of the global wine and spirits industry, the company said in a press release.
“Absolut, the number one premium vodka worldwide, is the ideal addition to complete Pernod Ricard’s brand portfolio and makes the group the second-largest player in the US,” Pernod Ricard said. “In addition, the local brands V&S brings with it will add to Pernod Ricard’s critical mass in the Nordic markets.”
In keeping with its decentralised structure, Pernod Ricard said it was putting in place two Swedish-based business units within V&S:
The Absolut Company assumes the worldwide responsibility for Absolut, including production. It becomes part of the brand-owner network, alongside Chivas Brothers, Martell, Mumm, Perrier-Jouët, Irish Distillers, Malibu-Kahlúa International, Pernod Ricard Pacific and the joint venture Havana Club International. Ketil Eriksen has been appointed CEO of The Absolut Company and reports to Thierry Billot, Deputy Managing Director of Pernod Ricard in charge of Brands.
Pernod Ricard Nordic will market Pernod Ricard’s international and local brands in Sweden, Denmark, Finland, Norway, the Baltic States and Iceland. The company has been created by merging V&S Wines (the leading North European wine producer and importer), V&S Distillers (the leading North European producer and distributor of regional and local spirit brands) and Pernod Ricard Nordic Countries (the current Pernod Ricard distribution subsidiary in the Nordic region).
Michel Mauran becomes Pernod Ricard Nordic’s Managing Director, reporting to Laurent Lacassagne, Chairman and CEO of Pernod Ricard Europe. In addition, Rolf Cassergren has been appointed Chief Operating Officer in charge of Finance, Marketing, Communications and Operations for Pernod Ricard Nordic. He reports to Michel Mauran.
Bengt Baron, the current CEO of V&S, will assist with the integration of V&S into Pernod Ricard until 31 October 2008, when he will leave the group.
In a statement, Pernod Ricard thanked Baron for his “outstanding contribution to the development of V&S over the years and to the remarkable success of Absolut”.
Anders Narvinger has agreed to continue his position as Chairman of the Board of V&S.
The V&S acquisition will result in the disposal of a number of assets, namely the V&S brands Grönstedts Cognac, Red Port, Star Gin, Dry Anis and Lubuski Gin, and Pernod Ricard-owned Serkova vodka.
In addition, the distribution agreements for Stolichnaya vodka outside Russia and for Royal Canadian whisky in Sweden will end.
Commenting on the transaction’s success, Pernod Ricard Chairman and CEO Patrick Ricard said: “After Seagram and Allied Domecq in 2001 and 2005, this is the third transformational acquisition for the group. This operation will substantially accelerate the growth of both the Absolut brand, which will benefit from the group’s worldwide distribution network, and Pernod Ricard, which will strengthen its presence in the US and in the Nordic markets.”
About the main players
Ketil Eriksen: Born in 1963, Eriksen holds a BSc in Economics from the Oslo School of Business Administration. From 1999 to 2005 he was General Manager of Colgate-Palmolive in Sweden and Finland, joining V&S Absolut Spirits as President in 2005. He sits on the board of Maxxium Future Brands.
Michel Mauran: Born in 1961, Mauran graduated from the Institut d’Etudes Politiques in Lyons and holds an MBA from ISG Paris. In 1995, he joined Pernod Ricard as successively Managing Director of the Taiwanese subsidiary and Pernod Ricard’s joint venture in China. In 2005, he became Chief Executive Officer of the Nordic markets and Pernod Ricard Denmark.
Rolf Cassergren: Born in 1958, Cassergren graduated from Stockholm University. He has worked for KPMG as an auditor and for Coop Sweden, where he was Chief Financial Officer. Rolf joined V&S in 1996 as Senior VP, Finance before being appointed Executive VP in 2001 and then President of V&S Distillers in 2004.
MORE STORIES ON PERNOD RICARD AND ABSOLUT
Pernod Ricard boosts management team – 26/06/08
Alex Ricard moves from Pernod Ricard Asia travel retail to head Irish Distillers – 20/06/08
[comments]
Your post will appear – once approved – in
The Moodie Forum on our home page
