Pernod invests in Chinese market through new fund
Absolut Vodka owner Pernod Ricard has partnered with luxury goods company Kering, cosmetics business L’Oreal and investment firm Cathay Capital to create a fund to incubate early-stage Chinese companies.
Together, the companies have founded the Cathay Consumer Co-Creation Fund, which will focus on seed to series A investments in consumer goods and retail businesses.
The firms said the Chinese consumer market has experienced a ‘radical transformation’ recently, and view it as an ‘attractive’ landscape for new brands due to its influential culture, supply chain capabilities, infrastructure and more.
“China’s booming consumer sector is breeding massive opportunities for future, global business leaders,” commented Ma Jun, partner at Cathay Capital.
The move is the latest in a wave of investments in the Chinese market from spirits firms. Pernod Ricard recently opened The Chuan Distillery, a US$150 million malt whisky facility in Emeishan, China; Diageo also revealed plans to build a single malt whisky distillery in Eryuan County.
Pernod Ricard posted 20% organic growth in the first quarter of fiscal 2022. In September, the French drinks group agreed to buy retailer The Whisky Exchange to grow its e-commerce presence.
Earlier this month, the spirits firm sold the majority stake in its Armagnac portfolio for an undisclosed sum.
Related news
Spot Whiskey campaign marks World Art Day
