Pernod Ricard agreed to buy a majority stake in Canada’s Ace Beverage Group as the maker of Absolut Vodka and Jameson Irish Whiskey looks to boost its position in the growing category of pre-mixed cocktails.
Pernod’s Canadian affiliate Corby Spirit and Wine will acquire a 90% stake in closely held Ace at an enterprise value of $165 million Canadian dollars ($123 million), Pernod said in a statement Tuesday.
Ace’s flagship brand Cottage Springs is the leading pre-mixed cocktail brand in Ontario, Pernod said, with products that include Cottage Springs Vodka Soda and Tequila Soda. The segment, which includes hard seltzers, is expected to grow by 8% between 2022 and 2026, an increase of $11.6 billion across major markets, according to analysis firm IWSR.
Canada has been one of the fastest growing markets for the canned cocktails, with annual growth of more than 20% between 2016 and 2021, according to Pernod. Ace will benefit from Corby’s distribution network, it said.
The French beverage company will have the right to acquire Ace’s remaining shares through two call options exercisable in 2025 and 2028.
(Corrects ready-to-drink market in third paragraph to show $11.6 billion is growth rather than value)
