Pernod Ricard has divested itself of another one of its non-core brands with the sale of South African rum Red Heart to domestic producer KWV. KWV, one of South Africa’s biggest wine and spirits producers, has purchased the rum brand from the French multinational for an undisclosed sum. Red Heart, which is available in original and spiced versions, has a strong presence in the South African market. The sale marks KWV’s entry into the rum category, adding to its spirits portfolio which includes Paddy Irish Whiskey, Ponchos Tequila and Cruxland Gin. KWV has said the acquisition is part of its strategic growth plan. The deal is set to be finalised on 22 August 2024, following the approval by the Competition Commission. Offloading assets Pernod Ricard’s sale of Red Heart is just the latest in a slew of sales of its non-core brands. The spirits giant sold a roster international wine brands to Australian Wine Holdco Limited (AWL), a consortium of institutional investors and owner of Accolade Wines, in July. Jacob’s Creek, Orlando, St Hugo, Stoneleigh, Brancott Estate, Church Road, Campo Viejo, Ysios, Tarsus and Azpilicueta were all included in the sale. According to Pernod, the deal will allow it to strengthen its premiumisation strategy and direct its resources to its portfolio of premium international spirits and Champagne brands that drive the growth of its business. African presence Pernod Ricard has operated in South Africa for 30 years. The company has expanded its presence in the continent over the past 12 years
This Article was originally published on The Drink Business - Wine
