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May 15, 2008
GOVERNOR: PERNOD COMMITTED TO BUILDING MARKET POSITION FOR CRUZAN RUM Governor John P. deJongh Jr. met this week with the senior management of Pernod Ricard at their offices in Paris to discuss Pernod’s recent acquisition of Cruzan VIRIL, Ltd. as part of their purchase of Cruzan VIRIL, Ltd.’s parent company, Vin & Spirits, from the Government of Sweden. The Pernod Ricard representatives included included Chairman and CEO Patrick Ricard, Managing Director Pierre Pringuet, Chairman and CEO of Pernod Ricard Americas Michel Bord, Jerome Cottin-Bizonne and Krister Asplund, Operations Director of Vin & Spirits. DeJongh requested the meeting to explore Pernod’s plans for the future of Cruzan Rum, to discuss areas of increased partnering to strengthen the relationship and to highlight to the new owners the importance of Cruzan VIRIL, Ltd. to the St. Croix community and the Virgin Islands, as well as the critical role of the rum excise tax revenues on the government’s General Fund and Territory-wide capital investment. The meetings set a very positive tone for relations between the Government and the new owners of Cruzan Rum. As the meeting began, Pernod Chairman Patrick Ricard expressed his appreciation at the opportunity to meet face to face to establish the new relationship. Ricard stressed their commitment to building the market position of Cruzan Rum, and to keeping the home of Cruzan Rum in St. Croix. "Cruzan is part of St. Croix," Ricard emphasized, "We believe that each of our brands is rooted in their community of origin, and that Cruzan will always be made in St. Croix." The rum excise tax contributes approximately $70 million to the V.I. Government’s budget each fiscal year. DeJongh described the meetings as the critical first step in building a solid partnership with the new owners of Cruzan VIRIL, Ltd. Cruzan has gone through many owners over the past decade, and it has been a number of years since it was a locally- owned business. Therefore, establishing and maintaining solid relationships with the corporate owners is extremely important to our on-going partnership. "I am enthusiastic about the potential that Pernod Ricard brings in terms of long-term ownership stability, a commitment to building the branded rums and a strong distribution network." DeJongh noted that we will face challenges as we look to address the environmental issues and permitting requirements that Cruzan has been grappling with for the better part of the decade, but working together with new ownership that is committed to building Cruzan and to building a stable revenue base for the Virgin Islands, he is sure that solutions will be developed to support both the goals of the government and those of Pernod. "Both sides recognize that we have made real progress over the past six months toward a permanent solution. We are committed to working together to bring this issue to closure with a solution that will address our environmental concerns and assure the long-term viability of the company. Our common goal is nothing less than to assure new long-term stability and sustained growth for a company that has seen many changes over the recent years, and whose success is critical to our future." The acquisition by Pernod is expected to be completed sometime this summer and company officials suggested that they would take twelve to eighteen months to review Cruzan VIRIL, Ltd. operations, and marketing strategies and opportunities as they consider their own plans for growing its market share in the U.S. Pernod Ricard is the second largest company in the world in the spirits industry. |
