Abstract
Created by Paul Ricard in 1939, the Ricard company, subsidiary of the Group Pernod Ricard since 1975, is a major player in the sector of drinks. It occupies the first rank in France on the market of the whisky with Clan Campbell, of premium Scotch whisky with Chivas, of Irish whiskey with Jameson. It also has brands like Four Pinks, the number 2 of the bourbons in France; Wyborowa, which the top ranked among Polish Vodkas, and Larios, the bestselling gin in Europe, etc.
To market its various brands, Ricard has several industrial centers and important commercial structures everywhere in France and around the world. Nearly two billion bottles have been sold since the creation of the brand in 1932.
These performances are explained by constant superior quality and the single-minded savor of Ricard, appreciated by three quarters of the French (survey Matem- November 1998). They also find their force in a strategy of conquest which animates the company and which appears on all spots of sale, thanks to marketing and commercial innovation.
Allied Domecq
Allied Domecq was an English group primarily specialized in the spirits, but also in the fast-food industry. It was repurchased by French Pernod-Ricard and American Fortune Brands.
Allied Domecq was historically created by bringing together the English group Allied Lyons and Spanish Domecq.Allied Lyons evens the result of fusion between Allied Breweries and the group J. Lyons and Co.
Condition of the offer
At the time of its repurchase, Allied Domecq was approached in a friendly way by Pernod Ricard. The target was too large, and also due to competitive reasons, the French group sought a partner group, associating in the same diagram at the time of the repurchase of Seagram in 2004 (then Pernod-Ricard with Diageo).
Diageo being itself a time interested in Allied Domecq, an agreement was settled upon with Pernod-Ricard; Diageo with the group in exchange of some retrocessions, namely Bushmills Irish Whisky and Montana Wines. Finally, Diageo will give up the latter.
Finally, other groups did not overbid on the friendly offer. It is the case of Brands Constellation
Allied Domecq also had chains of quick service restaurant businesses of world famous brands and a participation in Britvic, a British soft drinks company. These last activities except alcohol will be quickly sold by the consortium, not forming part of the core activity of the purchasers.
Some spirit brands of Allied Domecq were sold to other purchasers, because they did not interest the two groups of the consortium.
