After an investigation into its potential to disadvantage rival winemakers’ access to grapes and processing or packaging services, the ACCC will not be opposing the proposed acquisition of Pernod Ricard Winemakers by Australian Wine HoldCo, through its subsidiary Accolade.
Announced in July, Accolade’s acquisition relates to Pernod Ricard Winemakers’ BrandCo division, which owns and manages a portfolio of Australian, New Zealand and Spanish wines including Campo Viejo, St Hugo, Church Road, Stoneleigh, and Jacob’s Creek.
The company already owns wine brands including Berri Estates, Grant Burge, Petaluma, Hardys and St Hallett.
ACCC Commissioner, Dr Philip Williams, said the organisation found that the acquisition would not materially alter competition in grape acquisition markets where Accolade and Pernod Ricard currently overlap.
“Based on our investigation, we consider the proposed acquisition is unlikely to substantially lessen competition in wine processing and packaging services, and similarly is unlikely to substantially impact competition in the wholesale supply of wine,” said Williams.
“We considered that if the acquisition went ahead, a number of other businesses will continue to offer competing processing services and also wine.”
Information and feedback gathered during the ACCC’s investigation indicated that the acquisition is unlikely to substantially lessen competition in the market for the purchase of wine grapes.
Concerns relating to whether Accolade, following the acquisition, could disadvantage rival winemakers’ access to processing or packaging services were also examined by the ACCC.
After hearing submissions from a range of market participants, including grape growers, competing winemakers, wine retailers, and industry bodies during its investigation, the ACCC concluded that Accolade is unlikely to have the incentive or ability to engage in this conduct, and that even if such conduct occurred it would be unlikely to substantially lessen competition in the wholesale supply of wine.
