One of the world’s biggest booze makers is ditching wine brands as the world drinks less

Pernod Ricard is selling most of its wine brands, as wine consumption is falling globally, and will instead focus on growing its champagne and premium spirits labels, including in the United States.

Pernod Ricard is selling most of its wine brands, as wine consumption is falling globally, and will instead focus on growing its champagne and premium spirits labels, including in the United States. The French group — which owns Absolut Vodka, Jameson Whiskey, Olmeca Tequila and Beefeater Gin — announced the sale of seven wineries in Australia, New Zealand and Spain Wednesday, saying it would allow the company to direct more resources to its premium spirits and champagne brands, which “drive the growth of its business.” The sale to Australian Wine Holdco Limited, a consortium of international investors, will see Pernod Ricard offload 10 wine brands: Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus, and Azpilicueta. No financial details were disclosed. The deal comes after wine consumption globally hit a 27-year low last year, according to an estimate by the International Organisation for Vine and Wine (OIV), an industry group. Pernod Ricard reported a 7% fall in sales for the wine brands it plans to sell in the first quarter of this year, mainly as a result of a decline in popularity of Jacob’s Creek in India and Campo Viejo in the US. Wine drinking has been on a steady downward trajectory since 2018, driven by a decrease in consumption in China and as high inflation has eroded disposable incomes worldwide. Consumers have also been opting for beer and spirits instead, or choosing to forego alcohol altogether due to health considerations.