Pernod Ricard has agreed to sell the bulk of its wine unit to the owners of Australia’s Accolade Wines, as the drinks giant looks to focus on its spirits offering.

According to Reuters, the Absolut Vodka and Beefeater gin owner is planning to sell its wine brands from New Zealand, Australia and Spain, including Campo Viejo and Jacob’s Creek, subject to regulatory approvals.

However, Pernod Ricard will continue to own champagne brands, as well as wine from the U.S., France, Argentina and China.

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The spirits maker said the agreement would allow its former wine brands to be owned by a dedicated wine company, while it would be able to better use its resources to drive growth across its remaining brands.

It comes as in the year to June 2023, Pernod Ricard’s wine sales totalled just 4% of its overall sales.

The drinks manufacturer said the deal is expected to close in the second half of 2025.

It follows news last month that the UK’s largest winemaker Chapel Down is considering a sale of the company as part of a strategic review into funding options for its growth plans.