Pernod CEO quiet over acquisition prospects

Following Pernod Ricard’s acquisition of independent German gin brand Monkey 47, the group’s CEO has remained tight-lipped over his future M&A plans.

Alexandre Ricard (left) and Alexander Stein (right) have signed a deal for Pernod to acquire a majority stake in Monkey 47

In January this year, French drinks firm Pernod Ricard purchased a majority stake in Monkey 47, a dry gin produced in the Black Forest region of Germany that has gained a cult following around the world.

The move signifies Pernod’s ambition to capitalise on the booming “craft” gin market and follows Alexandre Ricard’s revelation in February 2015 that the group was “looking very closely” at acquiring a craft spirits brand.

Pernod Ricard also produces the Beefeater, Plymouth and Seagram gin labels.

Speaking at a roundtable press conference yesterday, Alexandre Ricard said that while the group has a “dynamic approach” to building its portfolio, he was loath to reveal any “white spaces” in his stable of products.

“[W]e always seek out opportunities at the right price that create value for us,” he said.

“The one thing we always say is that we want to remain investment grade. We know our white spaces but we are not keen on sharing these.”

Despite the rapid growth of American whiskey, Pernod Ricard is still without a presence in this segment. Last year, Alexandre Ricard said its brown spirits portfolio was so comprehensive, it didn’t need to own an American whiskey brand.

When asked whether he expected Pernod’s acquisition of Monkey 47 to be admonished due to the brand’s popular ‘craft’ status, Ricard said: “I am a strong believer that a brand that has substance and real purpose is a craft brand. For me, Chivas with its 200-year-old history is a craft brand.

“I don’t like to refer to this as an acquisition, it’s a partnership.”

The price of the takeover has not yet been disclosed, nor has the percentage shareholding between both Pernod and Monkey 47 producer Black Forest Distillers.