by Andrew Chalk
It is amazing how cheap the most prestigious wine brands are. Mumm is 3x sales at only $619m. Compare that with, for example, football club Manchester United at $6.55Bn, roughly ten times as much. Or The $1Bn Facebook paid for Instagram in 2012, two years after its founding.
Wine is in very much on a long-term decline. This is not cyclical.
From the wires...
"Pernod Reportedly Mulls Sale Of Mumm Champagne
After selling its international wine business to Accolade Wines and partners last year, Pernod Ricard is reportedly considering selling its Mumm Champagne brand. Reuters reported that Pernod has enlisted Rothschild & Co. to explore a potential sale, which could fetch €600 million ($619m), or three times' Mumm's annual revenues.
According to Impact Databank, Mumm's U.S. volume grew 5% last year to 30,000 cases. Globally, the brand ranks fourth among all Champagne brands at approximately 560,000 cases. Total Champagne shipments decreased 9.2% to 271 million bottles (22.5m cases) globally last year, according to the Comité Champagne, with both the domestic and export markets in decline."