Pernod Ricard close to Glendronach sale

Published on Saturday 12 July 2008 14:24

PERNOD Ricard, the French drinks giant, is understood to be in final negotiations to sell its Glendronach malt whisky distillery.

Industry sources say the owner of Chivas Brothers has received a first round of bids for the Highland malt and is close to sealing a 30m price tag for the Huntly-based distillery.

In a deal shrouded in secrecy, it is believed two potential suitors have emerged, including the South African consortium behind the BenRiach distillery company.

The deal comes just weeks after the Paris-based luxury goods giant LVMH Mot Hennessy announced it was putting Glen Moray, the Elgin-based distillery and single malt Scotch whisky brand, on the market as part of a wider restructuring of its Glenmorangie business.

One source said: "Pernod has received a first round of bids and is now in final negotiations with a preferred bidder. Quite frankly, though, I am shocked by this move as it is favoured by many whisky enthusiasts and it is a very pretty distillery. The decision is unbelievable."

Pernod inherited Glendronach as part of the portfolio of malts it received when it completed the 7.6bn acquisition of UK rival Allied Domecq in 2005.

At the time of the deal, there was speculation that the distillery would be surplus to requirements. The distillery, near Forgue, was mothballed in 1996 in an attempt to cut whisky stocks.

Allied had hoped at the time to reopen it in 1998, but stocks lasted longer than expected. It eventually reopened it in 2002.

Last night a spokesman for Pernod Ricard declined to comment, but it is understood that following the expansion of its Glenlivet distillery and the reopening of its Allt a' Bhainne distillery, Glendronach is surplus to requirements.

One source said: "They are probably trying to cash in while whisky prices are riding high."

The Glendronach has a long and distinguished history, having been established in 1826 by one of the original whisky entrepreneurs, James Allardice.