DIAGEO AND PERNOD'S BID FOR SEAGRAM APPROVED

Published: 23 July, 2008

Pernod Ricard will become one of the world's three largest wine and spirits companies, doubling the size of its core business, following authorisation on 21 December by the US Federal Trade Commission of the acquisition of Seagram by Pernod Ricard (paying US$3.2 billion) and Diageo (US$4.95 billion). The following Seagram assets will be sold: Oddbins (to Castel Frres of France), Sandeman Port (to Sogrape of Portugal), Mumm Sekt (to Rotkappchen Sektkellerei of Germany) and Four Roses Bourbon (to Kirin Brewery Company, of Japan). Brands owned and marketed by Pernod Ricard will represent an annual volume of approximately 46 million cases for spirits and 17 million cases for wine and wine-based aperitifs. The group will have major brands in all categories of spirits, with 11 brands currently selling more than one million cases. Whisky (13 million cases) becomes the group's primary sector, with three brands selling more than one million cases: Chivas Regal (the leading premium Scotch), Clan Campbell (the leading Scotch in France) and Jameson (the leading Irish whiskey). Pernod Ricard will have three white spirits brands selling more than one million cases: the gins Larios and Seagram's, and Polish wodka' Wyborowa. Total sales of white spirits will be 10.5 million cases. In its original core business - anise-based spirits (nine million cases) - the group was already number one worldwide, with brands Ricard (ranked fifth in the overall spirits category), Pastis 51 (a million-case brand), Pernod and Ouzo Mini. It is also number one in the bitters market, with almost three million cases (Amaro Ramazzotti, Becherovka, Suze), and will become number two in the Cognac market, having acquired Martell - another million-case brand. In the rum sector (3.5 million cases) it will own two one million-case brands: Havana Club and Montilla. Pernod Ricard forecasts a total turnover of approximately e3.6 billion, excluding duties and taxes.

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