German giant Henkell eyes Champagne house Pommery

Champagne house Pommery is in exclusive negotiations for a potential takeover by German sparkling wine producer Henkell, a move that could create a global powerhouse in effervescent wines. Pommery, the third-largest champagne producer, is 70% owned by the Vranken family and has been experiencing financial difficulties and significant debt for months.

The potential acquisition comes as the Vranken group seeks to navigate its financial challenges. Henkell, a world leader in sparkling wines, already owns brands like cava Freixenet, prosecco Mionetto, and the champagne house Alfred Gratien. The proposed alliance aims to combine the strengths of both family-structured entities.

"This project of alliance between two entities with family structures aims to create a global giant of sparkling wines," Pommery stated in a press release following the Paris stock exchange closing. The company, now valued at only 85 million euros, highlighted that the combined entity would benefit from a portfolio of powerful and complementary brands, while optimizing its international commercial reach.

The negotiations are set to last for two months, during which the terms of a majority stake acquisition will be determined. This potential deal signals a significant shift in the champagne industry landscape, driven by consolidation and the pursuit of global market dominance in sparkling wines.

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This project of alliance between two entities with family structures aims to create a global giant of sparkling wines.