The ACCC will not oppose the proposed acquisition of Pernod Ricard Winemakers by Australian Wine HoldCo Limited, through its subsidiary Accolade.
Accolade’s acquisition relates to Pernod Ricard Winemakers’ BrandCo division, which owns and manages a portfolio of Australian, New Zealand and Spanish wines including Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek.
Accolade owns wine brands including Berri Estates, Grant Burge, Petaluma, Hardys and St Hallett.
“Based on our investigation, we consider the proposed acquisition is unlikely to substantially lessen competition in wine processing and packaging services, and similarly is unlikely to substantially impact competition in the wholesale supply of wine,” Dr Philip Williams said.
“We considered that if the acquisition went ahead, a number of other businesses will continue to offer competing processing services and also wine,” Dr Williams said.
Information and feedback gathered during the ACCC’s investigation also indicated that the acquisition is unlikely to substantially lessen competition in the market for the purchase of wine grapes.
“We found that the acquisition would not materially alter competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap,” Dr Williams said.
Concerns relating to whether Accolade, following the acquisition, could disadvantage rival winemakers’ access to processing or packaging services were also examined by the ACCC.
The ACCC concluded that Accolade is unlikely to have the incentive or ability to engage in this conduct, and that even if such conduct occurred it would be unlikely to substantially lessen competition in the wholesale supply of wine.
The ACCC heard from a range of market participants, including grape growers, competing winemakers, wine retailers, and industry bodies during its investigation.
Note
In considering the proposed acquisition, the ACCC applies the legal test set out in section 50 of the Competition and Consumer Act.
In general terms, section 50 prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Background
Accolade
Australian Wine Holdco seeks to acquire Pernod Ricard Winemakers Pty Ltd, through its subsidiary Accolade Wines Australia Limited (Accolade).
Australian Wine Holdco Limited is owned by a consortium of institutional investors, led by Bain Capital Special Situations.
Accolade is one of the largest acquirers of wine grapes in South Australia. Accolade owns large wine brands including Berri Estates, Grant Burge, Petaluma, Hardys and St Hallett. It also owns wine processing and packaging facilities in South Australia.
Pernod Ricard
Pernod Ricard is an international wine and spirits producer and wholesaler that owns wine brands through its subsidiaries, including Pernod Ricard Winemakers in Australia.
Pernod Ricard Winemakers supplies prominent wine brands including Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek. Pernod Ricard also supplies wine processing and packaging services in South Australia.
Grape acquisition regions
In assessing this acquisition, the ACCC examined the regions in which both parties have historically acquired grapes in South Australia. This included warm climate regions such as the Riverland, Murray Valley, and Riverina as well as cool climate regions such as the Adelaide Hills, Barossa Valley, and Langhorne Creek.
