Pernod adds vodka to portfolio

French drinks giant Pernod Ricard today agreed a £4.6bn (€5.7bn) deal to buy Absolut vodka maker Vin & Sprit.

Pernod, which is behind brands such as Jacob’s Creek wine and Jameson whiskey, has concluded a deal with the Swedish government for the state-owned company.

The buyout ends months of speculation over the firm’s ownership after the Swedish government announced plans for a sale as part of a privatisation move.

Managing Director Pierre Pringuet said the acquisition will fill a gap for Pernod Ricard, which did not have any premium vodka brands in its portfolio.

“We wanted to bolster our presence in the US and Absolut, with its 5 million cases will definitely do that,” Mr Pringuet said.

The government selected Pernod Ricard’s bid on Sunday over three other offers, by liquor groups Fortune Brands and Bacardi and an investment group controlled by Sweden’s Wallenberg family.

The government said the French company – owner of brands such as Chivas Regal whisky, Mumm champagne and Beefeater gin – intends to keep Vin & Sprit and Absolut vodka based in Sweden.

“There is no written contract about that but the value of the brand is because it is Swedish,” Pernod Ricard Chairman Patrick Ricard said. “A Swedish brand must be produced in Sweden.”

Absolut is the premium brand in Vin & Sprit’s product range. Its other brands include Cruzan rum, Plymouth gin, a handful of Scandinavian aquavits and bitters and hundreds of wines.

Pernod Ricard acquired UK-based wine and spirits business Allied Domecq in partnership with Fortune Brands in 2005.