French drinks giant Pernod buys Californian vineyard

France’s Rémy Cointreau also last week reported a 10.7pc drop in annual revenue fuelled by a major slump in cognac sales in China.

On an organic basis, sales at Pernod’s business which covers Asia and the rest of the world, apart from Europe and the Americas, fell 3pc in the first nine months. Organic growth in the Americas was up 4pc while its European business is 2pc ahead of the previous year, helped by a strong performance in Eastern Europe.

Pierre Pringuet, chief executive of Pernod Ricard, said: “In an environment that remains challenging, our performance over the nine months was in line with the half-year and with our annual guidance.”

Financial details of the Kenwood Vineyards acquisition, from F. Korbel & Bros, were not disclosed but Pernod said the Californian wine-maker produces a number of premium wines, which are predominantly sold in the US and Canada.

The deal for Kenwood, which was set up in 1970 in a winery that dated back to 1906, is expected to close before the end of June.

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