Pernod Ricard Eyes Ready-To-Drink Growth as It Buys Canada's ABG
June 13 2023 - 3:19AM
Dow Jones News
By Joshua Kirby
Pernod Ricard said Tuesday that it reached a deal to buy a
Canadian producer of canned drinks, as it looks to increase its
exposure to the rapidly-growing market in ready-to-drink, or
RTD.
The French distiller will take a 90% stake in Ace Beverage
Group, or ABG, which produces the Cottage Springs line of
ready-to-drink cocktails and mixed drinks, including vodka water
and tequila soda.
The acquisition via Pernod Ricard's majority-owned Canadian
subsidiary Corby Spirit and Wine gives ABG an enterprise value of
165 million Canadian dollars ($123.4 million), Pernod Ricard
said.
The group, which also makes RTD products at its brands including
Malibu coconut rum and Jameson whiskey, has the option to reach
100% ownership in ABG via two call options excercisable in 2025 and
2028, it said.
The acquisition will boost Pernod Ricard's RTD business, said
Fredrik Syren, the group's director of RTDs and convenience.
"With ABG, Corby becomes a key player in the Canadian RTD
market, giving the scale and synergies needed in this category,"
Syren said.
The deal will also allow ABG to access Corby's distribution
networks across Canada, Pernod Ricard said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
June 13, 2023 03:04 ET (07:04 GMT)
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