Sunday, December 07, 2003


Oligopoly brief: Pernod Ricard

Paris-based Pernod Ricard, the result of a 1975 merger between two French distillers, is the #3 distiller of spirits in the world, after Diageo and Allied Domecq. Unlike those companies, Pernod Ricard is purely a vendor of alcoholic beverages. In fact, it sold off its soft drink operations in 2001 to Cadbury-Schweppes, which thus acquired the brands Orangina, Pampryl, Champomy, and Yoo-Hoo. It's notable that the original deal was with Coca Cola, but that was shot down by the European antitrust commission.

Pernod Ricard is very strong in a number of areas It is the leading vendor of anise-based liquors, not a big deal in the US, but very popular in Europe. It is also #1 in alcoholic bitters. It's #2 in gin, and #3 in rum and cognac/brandy.

The company's brands are sold throughout the world. Pernod Ricard is #1 in Europe, #2 in Asia and in Central and South America, but only #6 in North America. It is the leading seller of spirits in Cuba, Argentina, France, Italy, and Ireland. In recent years, it's invested in distilleries in Armenia, Russia, Poland, Argentina, and other countries. It also has a growing wine business, particularly selling Australian wines.

The biggest recent move was the joint 2000 acquisition with Diageo of Seagram's liquor empire. Each company gained a number of new brands. And they beat out rivals Allied Domecq and Bacardi. This made Pernod Ricard a truly worldwide company, giving it a bigger foothold in the US and giving it top brands like Martell. Seagram's Gin, The Glenlivet, and Chivas Regal. The company has done well financially in the past few years.

It's remarkable that so much concentration has taken place in the distilled spirits market. After all, a liquor business is rather easy to start up, and traditionally there have been crowds of small distillers in every country. But in liquor as in other businesses, brands are important and a handful of companies have worked hard to collect brands. Marketing and distribution power is pushing local bands out of the way.                        

                            Pernod Ricard brands

Liquor type Brands
Scotch whiskey Aberlour, Chivas Regal, Clan Campbell, Glen Heath, Longmorn, Passport, Royal Salute, Something Special, Strathisla, The Glenlivet, The Heritage, 100 Pipers
Irish whiskey Black Bush, Bushmills, Jameson, Middleton, Paddy Powers, Redbreast, Gold Label
Bourbon Wild Turkey
Other whiskies Blenders Pride, Dunbar, Natu Nobilis, Royal Canadian, Royal Stag
Vodka Altaï, Huzzar, Lodowa, Orlof, Premium, Seagram's Vodka, Wyborowa, Zubrowka
Gin Boodles, Cork Dry Gin, Larios, Seagram´s Gin
Tequila Olmeca, Viuda de Romero
Rum Havana Club, Mojito Club, Montilla
Anise-based drinks Arak Razzouk, Henri-Louis Pernod, Ouzo Mini, Pastis, 51, Pacific, Pernod, Pernod with absinthe, Ricard, 8 Hermanos
Bitters Amaro Ramazzotti, Becherovka, Fernet Capri, Suze
Liqueurs Dita, Gabriel Boudier, Eoliki, Millwood, Rua Vieja, Soho, Zoco
Cognacs and Brandies Ararat, Bisquit, Busnel (calvados), Chateau de Ligneres, Fior di Viti, Macieira, Marquis de Montesquiou, Martell, Renault
Wines Alexis Lichine, Cafayate, Canei, Cruse, Etchart, Jacob´s Creek, Long Mountain, Palacio de la Vega, Pasquier Desvignes, Poet's Corner, Richmond Grove, Rio de Plata, Wyndham Estate
Sparkling wines Café de Paris, Carrington, Jacob´s Creek
Wine-based aperatives Ambassadeur, Bartisso, Dubonnet, Sandeman, Byrrh
Ready-to-Drink Two Dogs, Seagram's Coolers, Wild Turkey Coolers, Ricard Ready-to-Drink, West Coast

1:46:59 PM    
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