Pernod Ricard Considers Sale of G.H. Mumm Champagne Brand

Pernod Ricard is considering selling its G.H. Mumm champagne brand to focus on premium spirits. Working with Rothschild & Co, they target a sale price over three times the brand's annual sales. The decision aligns with their strategy to streamline and enhance value amidst challenging market conditions.

Pernod Ricard, the French spirits giant known for Absolut Vodka and Jameson, is exploring the sale of its champagne brand G.H. Mumm. Sources reveal the decision is part of a strategy to concentrate on premium labels within its portfolio, with investment bank Rothschild & Co advising on the potential transaction.

The G.H. Mumm brand, a prestigious name in the French champagne world, will not be sold for less than three times its annual sales, estimated at 200 million euros. Despite the sale discussions, insiders caution that a transaction is not certain as Pernod Ricard remains selective about its asset sales.

Pernod Ricard's recent strategy included divesting a significant portfolio of wine brands to focus on spirits. Meanwhile, the company faces market challenges, including tariffs affecting sales in the U.S. and China. The outcome of selling G.H. Mumm will mark another step in Pernod Ricard's portfolio realignment.

(With inputs from agencies.)