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The
purchase, for an undisclosed sum, follows the acquisition
earlier this year of a majority stake in super premium German
gin maker Monkey 47, in a bid to tap growing global demand for
craft spirits.
The investment made by Pernod Ricard's North America subsidiary
NBV Investments Inc also marks the return of the French spirits
maker to the American whiskey market following its sale of Wild
Turkey, the Kentucky bourbon, to Campari in 2009.
With small, independent distillers popping up and taking market
share worldwide, spirits giants such as Pernod Ricard and Diageo
<DGE.L> have responded with premium products that tout small
batch production and local credentials.
"This investment illustrates perfectly our strategy of
partnering with rising entrepreneurs sharing the same passion
for authentic, high-quality brands," Pernod Ricard CEO Alexandre
Ricard said in a statement.
"It represents a strong opportunity to enter the fast-growing,
high-end bourbon market extending even more our fantastic
portfolio of genuine brands in our number 1 market."
The deal will allow Smooth Ambler to boost its spirits
production, which currently stands at 10,000 cases of nine-liter
bottles per year. It is expected to close in early 2017, pending
regulatory approval.
Founded in 2009, Smooth Ambler Spirits Co.is located in the
Greenbrier Valley of West Virginia. It uses regional natural
resources and ingredients to produce gins, vodkas, rums and
whiskeys, including the Old Scout Single Barrel Bourbon, which
sells for $65 per bottle.
Pernod said earlier this week it was confident of hitting its
goal for "mid-single digit" sales growth this financial year in
its top U.S. market, thanks to main growth driver Jameson Irish
whiskey but also robust demand for brands such as Malibu rum,
Martell cognac and Altos tequila.
By 1034 GMT Pernod Ricard shares gained over 2 percent, at
100.40 euros, among the top gainers on the CAC-40 index of
French blue chips <.FCHI>.
(Reporting by Dominique Vidalon; Editing by Elaine Hardcastle)
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