Accolade Wines Australia Limited is believed to be progressing with talks on a deal to buy Pernod Ricard Australia Pty Limited as some in the market see a break-up of Australian Vintage Ltd. (ASX:AVG) as a possibility. As Australian Vintage confirmed on 27 May 2024 that talks for a backdoor listing by Accolade Wines had collapsed sources said Accolade Wines' negotiations with Pernod Ricard were moving closer to a merger transaction. Five years ago, Pernod Ricard's local business - which includes Australia's Jacob's Creek and New Zealand's Brandacott Estate - was thought to be worth at least $700 million, or 13 times its earnings.

But that was in a more buoyant market when soaring inflation in shipping and bottling costs, labour shortages and oversupply were not weighing so much on the industry. Australian Vintage is now trying to raise between $10 million and $50 million in equity as it negotiates with its lenders. But some say that attracting investors to put money into the commercial wine business could be a challenging assignment and that perhaps small asset sales of its business is the next step.

Australian Vintage is suspended from trade for two weeks as it also negotiates with its lenders. It has made efforts to sell assets before.