Pernod ups stake in Sovereign Brands
French firm Pernod Ricard has ‘significantly’ increased its share in Sovereign Brands for an undisclosed sum.
Malibu Rum owner Pernod Ricard gained a stake in US-based Sovereign Brands in September 2021.
Sovereign Brands was founded by brothers Brett and Brian Berish in 2000, and has developed a portfolio that includes Caribbean rum brand Bumbu, French sparkling wine Luc Belaire, and Brazilian gin McQueen and the Violet Fog.
“Our partnership with Sovereign Brands has already proven to be very successful, with brands such as Bumbu and Luc Belaire now reaching an ever-growing number of consumers in the US and abroad,” said Alexandre Ricard, chairman and CEO of Pernod Ricard.
“I believe we are perfectly matched as two consumer-centric companies with a shared commitment of creativity, innovation and brand building.”
The family-owned company is said to be one of the fastest-growing firms in the beverage alcohol industry.
At the closing of the transaction between the two firms, expected to take place in November 2022, Pernod Ricard will ‘fully consolidate’ Sovereign Brands in its financial statements, due to various call options through which Pernod Ricard may look to further increase its stake in the partnership in the future.
In the last 12 months, the French drinks giant and Sovereign Brands have worked together to ‘significantly’ accelerate the growth of drinks companies including Bumbu, McQueen and the Violet Fog, and French liqueur Villon.
The partners have also planned for a ‘full-scale launch’ in the coming months.
The additional investment aligns with Pernod Ricard’s Transform & Accelerate plan.
Brett Berish, CEO of Sovereign Brands, said: “In the year since we first announced our partnership with Pernod Ricard, everything that we could have hoped for from the relationship has come to pass.
“With the upcoming launch of our innovative first joint brands together, it’s the perfect time to deepen our partnership.”
Pernod Ricard recently revealed it has a 4.2% share of the ready-to-drink (RTD) market in the UK, with “plenty of headroom to grow”, according to the company’s commercial director.