External growth

Pernod Ricard has implemented a policy of business development through external growth. In 1975, the Group had only 2 subsidiaries, in Switzerland and in Spain. The principle of regionalisation came into being in 1996 with the creation of Pernod Ricard Europe, Pernod Ricard Asia and Pernod Ricard Americas. With the takeovers of Seagram and Allied Domecq, the Group strengthened its position in the Americas and Asia. The acquisition of the Swedish group V&S in 2008 enabled Pernod Ricard to become n°2 in the US and consolidated its presence in Northern Europe.

Acquisitions and growth

Over the last 30 years, Pernod Ricard has acquired:
  • Campbell Distillers in 1975,
  • Austin Nichols Ltd in 1980,
  • SIAS MPA (the world’s n°1 producer of fruit preparations for the dairy industry) in 1982, sold in 2002, 
  • Orangina in 1984, sold in 2001,
  • Ramazotti in 1985,
  • Irish Distillers in 1988,
  • BWG (subsidiary of Irish Distillers, wholesale distributor) in 1988, sold in 2002
  • Orlando Wyndham in 1989,
  • Larios in 1997, sold in 2005,
  • Agros et Yerevan Brandy Company in 1999,
  • 38% of Seagram’s Wines and Spirits business in 2001,
  • Allied Domecq in 2005.
  • V&S in 2008


The acquisitions of Seagram’s in 2001, Allied Domecq in 2005 and V&S in 2008 have proven to be equally decisive moves for the Group.


SPOTLIGHT ON THE 2008 V&S ACQUISITION

Pernod Ricard acquired the Swedish group V&S in 2008 for €5.69 billion. Consequently, the Group has become one of the world leaders in the wine and spirits market. 
In particular, this ambitious initiative enables Pernod Ricard to :
  • acquire ABSOLUT VODKA, the leading international brand for Premium vodka and a real cult brand,  
  • complete its portfolio and diversify its Premium offer (Level Vodka, Aalborg Akvavit, Gammel Dansk, Luksusowa, Aussie, Blossa, California, Chill Out),
  • better distribute its portfolio geographically (especially in the United States and northern Europe), 
  • reinforce the Group’s capacity to generate cash flow. 
     

The integration of Vin & Sprit has been made more straightforward by the fact that the two companies share a similar culture. Synergies are expected to lead to cost savings of €150 million, with 50% due in the 2008-09 fiscal year. Following this transaction, ‘The Absolut Company’ was integrated into the Group’s Brand Owners network, and ‘Pernod Ricard Nordic’ has assumed responsibility for the distribution of international and local brands in northern European markets.

The current priority is to pay off the company’s debt. Once the level of debt returns to normal, Pernod Ricard will resume its active participation in the future consolidation of the industry.

 



- 1975: merger of the Pernod and Ricard companies
- 19,000 employees in more than 70 countries worldwide
- 113 production plants