Pernod Ricard-owned Corby Spirit and Wine, Canada’s second largest marketer and distributor of spirits and wines, has agreed to purchase RTD brand Nude for $8 million ($11 million CAD).
The deal marks a continuation of Pernod Ricard’s ambitious growth strategy in the Canadian RTD segment. Last June, Pernod Ricard acquired a 90% stake in Canadian RTD company ABG for $124 million.
The current transaction, made through ABG, accelerates the group’s “path to leadership” of the category by scoping up more market share in Western Canada.
“Nude’s standing as a key RTD player in the Western Canadian market perfectly complements our existing position in Ontario, paving the way for a national platform to introduce cutting-edge RTD innovations to consumers nationwide,” said Cam McDonald, CEO of ABG, in a press release.
Founded slightly ahead of the RTD boom, Vancouver-based Nude Beverages was created with a “better-for-you” vision within the flavored malt beverage and RTD space. Its first 5% ABV, sugar-free and sweetener-free vodka soda entered the market in 2017. The company has since expanded with several line extensions and new brands, including Los Flamingos and Slappy’s.
ABG, which was established in 2020 via a merger between Cottage Springs and Ace Hill, produces the leading RTD brand in Ontario, Cottage Springs. Last year’s acquisition brought additional brands Ace Hill, Cabana Coast and Liberty Village, into the the Corby portfolio, fueling Pernod Ricard’s scale, expertise, agility and efficiencies in the Canadian RTD category.
“Following last year’s successful integration of ABG’s brands into our combined RTD portfolio, which now includes Cottage Springs, Absolut, Malibu, Jameson, Polar Ice, and JP Wiser’s, we are delighted at this unique opportunity to reinforce our position in this attractive segment, with the ambition to become the leading RTD portfolio in Canada,” said Nicolas Krantz, Corby’s president and CEO in a press release.
The deal, which includes the Nude brand and certain assets of MXM Beverages, will be funded using available financing from ABG’s existing credit facility and is expected to be completed in the second half of 2024.