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Accolade Wines eyes deal with Pernod Ricard

Published:  13 May, 2024

Accolade Wines is currently in negotiations with Pernod Ricard regarding the sale of some of its assets, Harpers has learned.

The deal would potentially include the sale of Accolade’s Australian brands after the business struggled to balance the books during the fallout from China.

According to the Australian Financial Review’s Street Talk, Accolade – which is Australia’s second-largest wine group – is seeking terms with the Paris-listed company to the tune of approximately AU$500 million.

Accolade has been through several structural changes of late. In February, the producer and brand owner was taken over by a consortium of investors led by US-based management consulting company Bain & Co.

Bain is now the largest stakeholder in Accolade after agreeing to buy the company’s debt and take control, after Accolade struggled to adapt to Chinese tariffs and a consumer shift away from lower-priced brands.

Also in February, the company announced it was in talks with Australian Vintage on a separate deal. According to The Australian, the current discussions with Pernod Ricard are not related to the ongoing discussions with Australian Vintage and instead are part of a “dual-track process” for the company.

Both Accolade and Australian Vintage have been feeling the strain of Australia’s ongoing wine crisis. Accolade recently offered to purchase grape supply contracts via a $4,000 per ha buyout offer in order to combat oversupply in the Riverland region. Meanwhile Australian Vintage has just cancelled a lease on a Riverina vineyard seven years ahead of its scheduled expiry date.

Both Accolade and Pernod declined to comment regarding ongoing negotiations, though more information is expected to be announced soon.