Corby and Pernod Ricard Renew Canadian Representation Agreement

TORONTO and PARIS, Sept. 25, 2020 /CNW/ - Corby Spirit and Wine Limited ("Corby") and Pernod Ricard S.A. ("Pernod Ricard") announced yesterday after the close of TSX trading the renewal of the representation of Pernod Ricard's brands by Corby in the Canadian market.

Pernod Ricard is the global number two player in spirits and wine, with iconic, premium, international brands, including Absolut vodka, Jameson Irish whiskey, The Glenlivet single malt Scotch whisky, Beefeater, Monkey 47 and Malfy gins, Malibu rum, Kahlúa liqueur, Ballantine's and Chivas Regal blended Scotch whiskies and Jacob's Creek, Stoneleigh and Campo Viejo wines. The continued representation of Pernod Ricard's brands by Corby reaffirms Corby's ranking as number two in the Canadian spirits market, providing Canadian consumers a world class offering of iconic Canadian and premium international brands.

"Since forging a mutually beneficial relationship in 2006, Corby successfully developed the Pernod Ricard portfolio, leveraging its scale, expertise and knowledge of Canadian consumers and market. Corby's success since then has enabled Canada to be one of the top ten markets worldwide for Pernod Ricard. I am pleased to reaffirm Pernod Ricard's commitment to Corby through this renewal and to continue our journey together as 'Creators of Convivialité'," said Alexandre Ricard, Chairman & Chief Executive Officer of Pernod Ricard.

Under the agreement, as of July 1, 2021, Corby's exclusive right to represent Pernod Ricard's brands in Canada will continue for five years and three months until September 29, 2026, with a potential for automatic renewal for a further three years thereafter, subject to the achievement of performance criteria.  The end of the term of the new Canadian representation agreement aligns with those of the existing production and administrative services agreements between the parties, renewed in 2016.

"Corby is very pleased that it will continue representing the Pernod Ricard brands in Canada for the next six, and potentially next nine, years," stated George McCarthy, Chair of the Corby Board of Directors. "Having agreed the renewal well in advance of the deadline is a good indication of Corby's strong relationship with Pernod Ricard and its recognition of Corby's solid performance growing the Pernod Ricard brands in Canada. I am convinced this agreement will create value for Corby," continued Mr. McCarthy.

Corby anticipates that the transaction will provide continuity and greater assurance with respect to earnings. "This renewal is a testimony of the strong relationship that Corby has had with Pernod Ricard for the last 14 years. We are delighted to continue to represent power brands like Absolut, Jameson and The Glenlivet in Canada," says Nicolas Krantz, recently appointed President and Chief Executive Officer of Corby. By continuing Canadian representation of the Pernod Ricard portfolio of brands, this renewal allows Corby to maintain annual commission income as an important revenue stream (CAN$31.5 million in fiscal year 2020) and will be secured through the payment of an upfront fee of CAN$54.45 million to Pernod Ricard by Corby from cash on hand.

As Pernod Ricard owns approximately 46% of the capital of Corby, the representation agreement was approved by the Independent Committee of the Corby Board of Directors, in accordance with Corby's related party transaction policy, following an extensive review of the agreement by the members of such committee, with external financial and legal advice. Based upon the expert advice received, the independent committee anticipates that the renewal of the agreement will be value accretive to Corby.

"I'm excited that the Pernod Ricard brands will continue to contribute to Corby's overall value growth for all shareholders, complementing Corby's owned iconic Canadian brands like J.P. Wisers Canadian whisky, Polar Ice vodka and Ungava gin," said Mr. Krantz. "I look forward to seeing our shareholders at our upcoming virtual AGM on November 12 and to starting this new chapter for Corby," continued Krantz.

About Corby
Corby Spirit and Wine Limited is a leading Canadian manufacturer, marketer and distributor of spirits and imported wines. Corby's portfolio of owned-brands includes some of the most renowned brands in Canada, including J.P. Wiser's®, Lot 40®, and Pike Creek® Canadian whiskies, Lamb's® rum, Polar Ice® vodka and McGuinness® liqueurs, as well as the Ungava® gin, Cabot Trail® maple-based liqueurs and Chic Choc® spiced rum and Foreign Affair® wines. Through its affiliation with Pernod Ricard S.A., a global leader in the spirits and wine industry, Corby also represents leading international brands such as ABSOLUT® vodka, Chivas Regal®, The Glenlivet® and Ballantine's® Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu® rum, Kahlúa® liqueur, Mumm® champagne, and Jacob's Creek®, Wyndham Estate®, Stoneleigh®, Campo Viejo®, and Kenwood® wines. Corby is a publicly traded company based in Toronto, Ontario, and is listed on the Toronto Stock Exchange under the trading symbols CSW.A and CSW.B.  For further information, please visit our website or follow us on LinkedIn.

About Pernod Ricard
Pernod Ricard is the no.2 worldwide producer of wines and spirits with consolidated sales of €8,448 million in FY20. Created in 1975 by the merger of Ricard and Pernod, the Group has developed through organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard, which owns 16 of the Top 100 Spirits Brands, holds one of the most prestigious and comprehensive brand portfolios in the industry, including: Absolut Vodka, Ricard pastis, Ballantine's, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob's Creek, Brancott Estate, Campo Viejo, and Kenwood wines. Pernod Ricard's brands are distributed across 160+ markets and by its own salesforce in 73 markets. The Group's decentralised organisation empowers its 19,000 employees to be true on-the-ground ambassadors of its vision of "Créateurs de Convivialité." As reaffirmed by the Group's strategic plan, "Transform and Accelerate," deployed in 2018, Pernod Ricard's strategy focuses on investing in long-term, profitable growth for all stakeholders. The Group remains true to its three founding values: entrepreneurial spirit, mutual trust, and a strong sense of ethics, as illustrated by the 2030 Sustainability and Responsibility roadmap supporting the United Nations Sustainable Development Goals (SDGs), "Good times from a good place." In recognition of Pernod Ricard's strong commitment to sustainable development and responsible consumption, it has received a Gold rating from Ecovadis. Pernod Ricard is also a United Nation's Global Compact LEAD company. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices.

This press release contains forward-looking statements, including statements concerning possible value creation for Corby, continuity and assurance of earnings, maintenance of commission income and possible or assumed future results of Corby's operations. Forward-looking statements typically are preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and, as such, actual results or expectations could differ materially from those anticipated in these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.

SOURCE Corby Spirit and Wine Limited