Pernod sells off Bushmills brand
Pernod Ricard, the French drinks giant that owns the Midleton Jameson distillery, has sold off its Bushmills whiskey brand to Diageo for €298m.
Diageo is the parent of Guinness and the world’s largest drinks group, which also produces such big brand names as Baileys, Johnnie Walker Scotch Whisky, Smirnoff Vodka and Gordon’s Gin.
The sell-off means that Diageo is backing the €11bn takeover of Allied Domecq by French rival Pernod Ricard after being allowed to cherry-pick key brands.
Diageo will also secure an exclusive option to buy most of the New Zealand Montana wine business of Allied for about €475m — on condition that Pernod successfully lands control of Allied.
Both deals are expected to close in late 2005 or early 2006.
Bushmills is the oldest Irish whiskey brand and the second biggest seller well behind Jameson which is produced in Midleton, east Cork. Other brands in the Jameson stable include Paddy and Powers.
Paul Walsh, chief executive of Diageo, said: “Bushmills is a particularly pleasing opportunity. This is one of the industry’s oldest Irish whiskey brands and gives Diageo, for the first time, an important presence in this growing category.
“Montana is one of the leading New Zealand wine brands and the number one New Zealand export brand.”
Diageo does not have an Irish whiskey in its portfolio at the moment.
Whiskey has been distilled at the Old Bushmills Distillery since 1608, when Sir Thomas Phillips, having received a liquor licence from King James I, chose the site near the village of Bushmills in County Antrim, Northern Ireland for its production.
