FRANCE. Pernod Ricard and Corby Distilleries, in which the French drinks group has a 46% stake, have announced a combined strategic approach to the Canadian market.
The deal, expected to close on 2 July, covers the Canadian representation of Pernod Ricard’s brands, production of Corby’s owned brands, and an exchange of assets.
Corby’s owned brands include Wiser’s rye whiskies, Lamb’s rum and Polar Ice vodka. Through its affiliation with Pernod Ricard, Corby will continue to represent leading international brands such as Ballantine’s Scotch whisky, Beefeater gin, Malibu rum, Kahlúa liqueur and Mumm Champagne. As a result of the newly announced transaction, Corby will also represent global brands such as Chivas Regal and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Havana Club rum, Jacob’s Creek and Wyndham Estate wines.
Under the agreement, Corby will acquire the exclusive right to represent Pernod Ricard’s brands in Canada for
the next 15 years. As part of the transaction, Corby will also acquire from Pernod Ricard the international rights to Lamb’s rum (excluding the Canadian rights, which Corby already owns) and the Canadian rights to Seagram’s Coolers.
Corby will meet the C$105 million purchase price by selling its 45% interest in Tia Maria to Pernod Ricard.
The companies also agreed on the continuation of production of Corby`s owned-brands by Pernod Ricard at its production facility in Ontario for the next 15 years. Corby will manage Pernod Ricard’s business interests in Canada, including the Ontario facility.
Commenting on the deal, Pernod Ricard Americas Chairman and Chief Executive Officer Michel Bord said: “This transaction brings together the best of two extraordinary organisations to the benefit of liquor boards, licensees and consumers in every region of the country. This reorganisation reflects our corporate approach of having strong local roots combined with a global reach and is supported by our common commitment to excellence and more precisely to being the supplier of choice for all of our customers.”
Bord added that Pernod Ricard’s brands would be well served by Corby’s expertise, strong relationships and reputation in the Canadian market.
The transaction is expected to add approximately C$24 million to Corby’s revenue, in addition to the C$6 million of revenue that it maintains by continuing Canadian representation of the former Allied Domecq brands, now owned by Pernod Ricard.
Krystyna Hoeg, President and Chief Executive Officer of Corby, will continue to lead the reorganised company. André Hémard, previously Chief Operating Officer of Pernod Ricard Canada, is appointed to the position of Chief Operating Officer of Corby.
Armando de Medeiros, previously President and Chief Executive Officer of Pernod Ricard Canada, is expected to be promoted to Chief Executive Officer of another Pernod Ricard subsidiary.
Following last year’s acquisition of Allied Domecq, Pernod Ricard is the world’s second largest spirits and wine group and ranks second in the growing North American market (comprising Canada, the US and Mexico). The addition of Pernod Ricard’s brands solidifies Corby’s number-two ranking in the Canadian market, while further enhancing the company’s premium portfolio.
“We are pleased that discussions with Pernod Ricard have resulted in a combined strategic approach to the Canadian market,” said Corby’s Hoeg. “We now have responsibility for the management of every aspect of our business, from sales and marketing to production and supply chain management. And, most importantly, we have strengthened our portfolio in all categories – spirits, wine and coolers.”
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