Bernstein: Why Pernod Should Sell its Wine Biz

Dear Client:Earlier this month, reports surfaced that Pernod Ricard is weighing a sale of its wine division, which includes the likes of Jacob's Creek and Campo Viejo [see WSD 03-13-2019]. In a recent note, Bernstein estimates Pernod's wine brands could fetch between $1.1 billion to more than $2.3 billion. Four of Pernod's wine brands are classified as Strategic brands - Jacob's Creek, Campo Viejo, Brancott and Kenwood. Those four account for about 65% of wine sales and 58% of wine