Australian Wine HoldCo Ltd (AWL) subsidiary Accolade has secured clearance from the Australian Competition and Consumer Commission (ACCC) for its proposed acquisition of Pernod Ricard Winemakers’ Australian, New Zealand and Spanish wine businesses.
The ACCC said it examined concerns about potential disadvantages the acquisition could bring to winemakers with regard to their access to processing or packaging services.
“Based on our investigation, we consider the proposed acquisition is unlikely to substantially lessen competition in wine processing and packaging services, and similarly is unlikely to substantially impact competition in the wholesale supply of wine,” said Philip Williams, ACCC commissioner.
“We found that the acquisition would not materially alter competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap.”
Accolade has welcomed the ACCC’s decision and said that the acquisition would result in a more efficient entity to weather the challenges in the wine industry.
“Combining Accolade Wines with the Pernod Ricard assets will create a more certain and financially sustainable future for the business, allowing us to better serve our customers in more segments and more geographies,” said Joshua Hartz, AWL spokesperson.
“Backed by AWL, the combined business will be better able to adapt to changing consumer tastes and meet the structural challenges facing the global wine industry.”
Pernod Ricard Winemakers’ brands include Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek, while Accolade’s brands include Berri Estates, Grant Burge, Petaluma, Hardys and St Hallett.
