London CNN —Pernod Ricard is selling most of its wine brands, as wine consumption is falling globally, and will instead focus on growing its champagne and premium spirits labels, including in the United States.
The deal comes after wine consumption globally hit a 27-year low last year, according to an estimate by the International Organisation of Vine and Wine (OIV), an industry group.
“The divestment (by Pernod Ricard) makes sense as the segment has been underperforming for a while now and the global wine market is still challenging,” Sarah Barrett, the executive editor of Wine & Spirits Daily, a US-based trade publication, told CNN.
Pernod Ricard is also doubling down on American whiskey.
Falling wine consumption globally has collided with severe pressures on wine production, forcing many vineyards in Europe to close their doors.
Persons:
London CNN — Pernod Ricard, Jameson, Gin —, Pernod Ricard, St Hugo, Stoneleigh, ” Sarah Barrett, Barrett, ” Richard Black, Jordan Valinsky
Organizations:
London CNN, Wine Holdco, International Organisation of Vine, Campo Viejo, Consumers, Wine, Daily, CNN, distillers, Wine Estates, North American Distillers
Locations:
United States, Australia, New Zealand, Spain, Orlando, Brancott Estate, Campo Viejo, Ysios, Tarsus, India, Campo, China, US, Europe, New York