Friday 31 March 2017

31.3.17 González Byass and Fundador Close Domecq Deal

Control of the names Domecq and Pedro Domecq has returned to Jerez, where they began. González Byass and Fundador announced yesterday the completion of the 81 million euro deal with Pernod Ricard for the purchase of all Domecq brands and installations by Bodegas Las Copas, a 50/50 joint venture. The deal had been agreed back in November, but needed the green light from the Mexican competition authorities which has now been given.

The deal comprises the Mexican brandy distillery and the Casa Pedro Domecq wine bodega in Baja California as well as business interests in the United States, Brazil and Benelux. Just the three brandies produced in Mexico, Presidente, Don Pedro and Azteca de Oro, account for 50% (1.2 million cases) of the Mexican brandy market.


Back in 1994 Allied Lyons bought the Domecq business for a whopping 600 million euros, renaming itself Allied Domecq, but before long the vultures were circling in the form of Pernod Ricard and Fortune Brands who jointly bought the business and shared out its parts. PR got the brand name and the business in Mexico while Fortune (in the name of its subsidiary Beam) got the Sherry, brandy, bodegas and vineyards in Jerez. By the time Beam was taken over by Suntory it had divested itself of some of its principal assets: the La Ina range (to Lustau), the VOS and VORS Sherries and the Carlos brandies (to Osborne) as well as the Palacio Domecq and the Gallo Azul.


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