Pernod Ricard made a minority investment in the New York headquartered company in September 2021.
Launches set for 2023
Sovereign Brands is a family company founded by brothers Brett and Brian Berish, who are ‘among the industry’s most innovative and creative beverage alcohol brand builders in the world’s leading spirits market’, according to Pernod Ricard.
Over the last 12 months, Pernod Ricard and Sovereign Brands have already accelerated the growth of Sovereign’s brand portfolio including French super-premium sparkling wine Luc Belaire (circa 1 million 9L cases in 2021), a range of Caribbean rums sold under the Bumbu brand (circa 300K 9L cases in 2021), the Brazilian gin McQueen and the Violet Fog and the French liqueur Villon.
Both companies have also initiated a number of joint incubation projects, with an initial brand planned for a full scale launch in the coming months.
Pernod Ricard says the increased investment is in line with its strategic plan ‘Transform & Accelerate’, increasing its focus on consumer-centric portfolio development and growth categories.
Closing, which is expected to occur in November 2022, remains subject to customary closing conditions, including regulatory clearances.
“Our partnership with Sovereign Brands has already proven to be very successful, with brands such as Bumbu and Luc Belaire now reaching an ever-growing number of consumers in the US and abroad. I believe we are perfectly matched as two consumer-centric companies with a shared commitment of creativity, innovation and brand building” says Alexandre Ricard, Chairman and CEO of Pernod Ricard.
At the closing of this transaction, Pernod Ricard will fully consolidate Sovereign Brands in its financial statements due to various call options through which Pernod Ricard may look to further increase its stake in the partnership in the future.