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Pernod Ricard off-loads brandy to focus on spirits

Published:  02 December, 2016

Pernod Ricard is selling the Domecq brand and its related brandies and wines to Emperador Group and Gonzalez Byass.

Pernod Ricard have announced the signing of an agreement for the sale of the Domecq brandies and wines through its Mexican and Spanish subsidiaries, to Bodega Las Copas - a joint-venture owned by Grupo Emperador Spain and by González Byass.

The sale includes the brand portfolio of Mexican brandies Don Pedro, Presidente and Azteca de Oro as well as the winery related to the production of Mexican wines in Ensenada, together with the relevant inventories related to the Domecq brands in several markets, including Spain, United States, Belgium and the Netherlands, among others.

The disposal is part of Pernod Ricard's strategy to simplify its portfolio and focus on its priority on spirit brands such as Absolut vodka and Chivas Regal scotch and also wine. 

The closing of the transaction is expected to take place before the end of the fiscal year 2016/2017.

Bodega Las Copas grew from an agreement between Asia's Grupo Emperador and Spanish family company Gonzalez Byass to jointly distil wine and produce brandy and other quality spirits in Spain.

Grupo Emperador Spain is a subsidiary of Emperador, the largest brandy company in the world.

This time last year, the group announced plans to expand its brandy and sherry operations by buying up the Jerez-based Beam Suntory.

Emperador also acquired Whyte & Mackay Scotch whisky from United Spirits in 2014 for £430 million.