FDBusiness.com

Irish Distillers Pernod Ricard has completed the sale of Paddy Irish Whiskey, the fourth largest Irish whiskey brand in the world, to Sazerac, a US-based family owned business. The value of the transaction is not being disclosed.

The deal involves Irish Distillers Pernod Ricard continuing to produce Paddy Irish Whiskey at its Midleton Distillery in County Cork.

“In the global market, Irish whiskey experienced the fastest volume growth in the last five years, outpacing all other spirits categories. Consumers worldwide are seeing it as an alternative to other whiskies,” says Mark Brown, president and chief executive of Sazerac. “We are confident that we will be able to take Paddy to the next level, building on its strong history and roots.”

The divestment of Paddy Irish Whiskey is in line with the Pernod Ricard strategy to simplify its portfolio for growth and could facilitate, among other things, targeted investment in other key Irish Distillers’ whiskey brands including Jameson and Powers to support continued growth.

Paddy Irish Whiskey sells 200,000 9-litre cases in 28 countries worldwide annually. As the Irish whiskey industry is projecting 100% growth by 2020, an acquisition of the Paddy brand by Sazerac would ensure that the brand is positioned for sizeable investment to support its future growth

Anna Malmhake, chairman and chief executive of Irish Distillers Pernod Ricard, comments: “At the heart of everything that Irish Distillers does is a desire to see Irish whiskey grow.”