Pernod Ricard acquires majority stake in Código 1530 Tequila
Pernod Ricard has acquired a majority stake in Código 1530 Ultra Premium and Prestige Tequila to “strengthen its agave portfolio”.
The drinks giant revealed the agreement for the acquisition of a majority shareholding of Código 1530 Tequila, was “mainly driven by the US market” and “complements the group’s very comprehensive portfolio across price points and occasions”.
Código Tequila, which is produced in Jalisco, Mexico was founded in 2016 by Ron Snyder, Federico Vaughan and George Strait and is based on the transmission of an ancestral Tequila recipe following Los Códigos, “the codes” in English and is already available within 50 states across the US and over 30 markets.
The strengthening of the agave portfolio follows Pernod’s recent investment in the sotol category through its acquisition of a minority stake in the ultra-premium Nocheluna brand as well as upping its stake in US-based Sovereign Brands, giving it a boost in the US and Mexico.
Speaking of the acquisition, Pernod Ricard chairman and CEO Alexandre Ricard said: “Código’s range of exquisite Tequilas reinforces our offer of Ultra Premium+ agave products in the US, where the category is enjoying a very strong momentum. It is a privilege to partner with Ron Snyder, Federico Vaughan and George Strait with whom we share a common vision for Código 1530 and common ambition to strongly accelerate and strengthen the success of the brand”.
Pernod Ricard USA CEO Ann Mukherjee explained: “We are incredibly excited to welcome Código 1530 into our portfolio, enhancing our agave products offer especially in its upper segment where consumers and connoisseurs are eager to discover brands that combine strong roots with the most exclusive quality. Thanks to our newly enhanced portfolio, we have never been more confident to lead the growth of the spirits’ industry within the US market.”
Código founder Ron Snyder added: “To gain the backing of Pernod Ricard is a powerful alliance, and a logical progression that will benefit consumers with an expanded reach through our collaborative growth. We look forward to working closely with Alex, Ann and the Pernod Ricard team as we build our brand globally.”
Pernod Ricard declined to comment on the price of the acquisition and told the drinks business that the company is in a “quiet period before Q1 communication” this week, however it has revealed that “through this partnership” it intends to “diversify the value proposition of its portfolio of Tequila brands, which already includes Olmeca, Altos and Avion” and added that it is “also adding two new Mezcal references (Código Mezcal Artesanal and Código Mezcal Ancestral) to its market leading Mezcal portfolio built around the Del Maguey and Ojo de Tigre brands”.