Pernod Ricard to Sell FRÏS Vodka Brand to Sazerac

By Saabira Chaudhuri 

Pernod Ricard SA has agreed to sell its Danish vodka brand FRÏS to Sazerac Co. as the French spirits maker continues to refocus its portfolio.

The deal to sell FRÏS for an undisclosed amount marks Pernod's second sale to Sazerac: The company earlier this year sold its Paddy Irish whiskey brand to the New Orleans based Sazerac in a bid to focus resources on its flagship brand Jameson.

"The disposal is in line with the Pernod Ricard strategy to focus on its priority spirits and wines brands," said the company in a Friday statement.

The deal marks the latest for Sazerac, which earlier this year snapped up Brown-Forman Corp.'s Southern Comfort and Tuaca liqueur brands.

While mainstream vodka brands like Smirnoff and Absolut have struggled in the U.S., consumers have embraced brands they perceive as being "craft" vodka brands. FRÏS is made from whole wheat grain and spring water from wells in northern Denmark and is made using a patented freeze-distillation process. The brand sells 150,000 nine-liter cases a year in the U.S. according to Pernod.

Pernod has been focused on turning around its Absolut vodka brand in the U.S. -- its second largest there behind Jameson -- after last year taking a hefty write down on the brand. It has been pushing its high-end Absolut Elyx brand, investing in marketing campaigns and paring Absolut's range of flavors.

Write to Saabira Chaudhuri at [e-mail]

(END) Dow Jones Newswires

September 30, 2016 12:51 ET (16:51 GMT)

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