Pernod Ricard acquires full ownership of South African Gin brand Inverroche

SOUTH AFRICA – In a strategic expansion within the African spirits market, French beverage conglomerate Pernod Ricard has acquired the remaining shares of South African gin producer Inverroche. 

The transaction, finalized on February 6, 2025, marks Inverroche as Pernod Ricard’s first wholly owned African spirits brand. Financial details of the acquisition have not been disclosed.

Founded in 2011 by Lorna Scott in Stilbaai, located in South Africa’s Cape Floral region, Inverroche has distinguished itself by incorporating indigenous fynbos botanicals into its gin production. 

The distillery offers three primary gin variants: Gin Classic, Gin Verdant, and Gin Amber. Beyond gin, Inverroche has expanded its portfolio to include rum products. 

Currently, the brand’s offerings are available in 25 international markets, with recent entry into the United States.

Pernod Ricard’s strategic vision in Africa

Sola Oke, Managing Director of Pernod Ricard Africa, emphasized the significance of this acquisition.

“Africa is a market with great potential for Pernod Ricard. Our investment in Inverroche demonstrates the continued commitment of our group to Africa, and our belief in the continent’s potential as a significant white space opportunity in the world for the Premium+ Spirits & Champagne segment,” he said. 

According to Statista, the Spirits market in Africa is projected to grow by 6.05% (2025-2029) resulting in a market volume of US$7435.0m in 2029.

Financial performance and market adjustments

Concurrently, Pernod Ricard has reported a 4% decline in organic net sales and a 6% decrease in reported net sales for the first half of the 2025 financial year. 

The company attributes these challenges to ongoing issues in key markets, including the United States and China. 

Despite these setbacks, Pernod Ricard remains focused on strong cash generation and strategic investments, aiming for approximately 80% cash conversion to fund its financial priorities. 

The company has also adjusted its medium-term growth targets, now projecting a 3-6% increase in organic sales between 2027 and 2029, a revision from the previous 4-7% forecast.

Community impact and sustainability initiatives

Inverroche has made significant contributions to local employment and sustainability in the Stilbaai and Riversdale areas. 

The distillery is one of the largest employers in the region, with 70% of its workforce comprising women, many of whom are heads of single-parent households. 

During peak periods, such as December, Inverroche creates additional temporary jobs to manage increased visitor numbers at its brand home in Stilbaai. 

The company is also committed to supporting local suppliers and businesses, reinforcing its dedication to community development and environmental stewardship.