Pernod Ricard is weighing up the idea of offloading Champagne brand Mumm.
The French group and its advisers are running the rule over a possible disposal, Just Drinks understands.
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A source familiar with the matter said the deliberations centre only on the Mumm brand and do not include Perrier-Jouët, another Champagne label in the Pernod Ricard portfolio.
Earlier today, Reuters first reported the company is working with investment bank Rothschild & Co. on exploring the move.
Approached by Just Drinks for comment, Pernod Ricard provided a statement.
“Pernod Ricard notes the recent market rumours regarding its potential divestment of its Mumm brands. Pernod Ricard regularly assesses and evaluates its strategic opportunities and is continuously exploring options, including divestments or the streamlining of some or part of individual business units,” the group said.
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By GlobalData“This is a usual process in line with management’s mission of delivering value to shareholders, employees, clients and stakeholders. The group nonetheless highlights that, at this stage, no decision has been made regarding any particular action or involving one of these options.”
Last year, Pernod Ricard, one of the world’s largest distillers, struck a deal to sell a clutch of wine assets including the Jacob’s Creek, Brancott Estate and Campo Viejo brands.
At the time, the Jameson whiskey maker said the sale of the assets would help it hone in on its global spirits and Champagnes portfolio, which it said “drive the growth of its business”.
Pernod Ricard retains a presence in wine through assets including its Provence rosé, Sainte Marguerite, and Kenwood in California.
Earlier this week, the company cut its forecast for its annual net sales.
The Martell owner, which had forecast its full-year organic net sales would return to growth, now predicts a “low-single-digit” decline during its 2024/25 financial year, which runs to the end of June.
Pernod Ricard pointed to an “ongoing challenging macroeconomic environment” and “intense geopolitical uncertainties” it said are hitting the spirits sector.
The group retained its forecast of “sustaining” its organic operating margin.
