According to initial reports following the resignation of Australian Vintage (AVG) CEO Craig Garvin, merger talks with Accolade Wines were unaffected by the sudden departure. However, drinks industry news portal Drinks Business has quoted an AVG manager, Simon Mawhinney, as saying: "I do think this is the kind of thing to embolden Accolade to get a better deal than might otherwise have been the case.”
Accolade's negotiators have become bolder, but it is likely not solely due to personnel changes at AVG. As the country's leading business newspaper the Australian Financial Review first reported, Accolade is also in talks with Pernod Ricard to buy its Australian wine production. The investment would be worth A$500 million (circa $330m) and would include such internationally well-known brands as Jacob's Creek, St Hugo, Stoneleigh, George Wyndham and Brancott Estate.
According to reports from Australia, acquisition talks between Accolade and Pernod Ricard are so advanced that the deal could be finalised by the end of May. Pernod Ricard has not commented.
