Pernod Ricard revises date for Seagram integration

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Liquor supplier Pernod Ricard has revised its internal deadline for the integration of the Seagram brands it acquired following the successful joint bid with Diageo. Pernod, which had hoped European, Canadian and US competition authorities would approve the purchase by the end of March, has now set a target date of May 1.

Pernod Ricard joint managing director Richard Burrows told TRW that even this date might prove to be optimistic. "But with this new internal deadline, we know that whatever the authorities decide, we will be ready to integrate the Seagram brands [including Chivas Regal Scotch whisky and Martell Cognac] into our portfolio."

Chairman Patrick Ricard said it was impossible to give a realistic date for the integration of the Seagram brands. "We know the European competition authorities take as long as they like to decide on these matters," he commented. "The decision is in their hands."
Burrows added that a Pernod task force was deciding how best to integrate the Seagram brands into the supplier's duty-free operation, run by travel-retail arm World Brands Duty Free (WBDF). He said that all options were under discussion--which could include incorporating the brands into WBDF's operation or creating an entirely new network to deal with Chivas and Martell. "We also want to exploit the distribution possibilities these new brands will give our existing brands in duty-free," continued Burrows.

Last week Pernod Ricard announced 6% year-on-year growth in its core liquor and wine operation, with total turnover reaching Eur4.4bn. The company's stated aims this year are to complete the Seagram acquisition; to continue the privatisation of Polish vodka producer Polmos Poznan; and to dispose of those Seagram brands deemed to be non-core. These include Passport Scotch whisky, Sandeman port and Four Roses Bourbon.