Pernod Ricard acquires majority stake in tequila, mezcal maker Código 1530

Tequila and mezcal are Mexican spirits produced from the agave and maguey plants respectively, and which are rapidly gaining popularity in international markets.

Código is already available within 50 states across the US and is at the early stage of its international development with a presence in over 30 markets. Thanks to Pernod Ricard’s distribution expertise in ultra-premium & prestige brands and its successful experience in collaborating with entrepreneurs, Código is now poised to accelerate its global development and reach new consumers, Pernod Ricard said in a statement.

“Through this partnership, Pernod Ricard is expanding and diversifying the value proposition of its portfolio of tequila brands, which already includes Olmeca, Altos and Avion. The Group is also adding two new Mezcal references (Código Mezcal Artesanal and Código Mezcal Ancestral) to its market leading Mezcal portfolio built around the Del Maguey and Ojo de Tigre brands. The strengthening of the agave portfolio follows the Group’s recent investment in the sotol category through its acquisition of a minority stake in the ultra-premium Nocheluna brand,” the company added.

“Código’s range of exquisite tequilas reinforces our offer of Ultra Premium+ agave products in the US, where the category is enjoying a very strong momentum. It is a privilege to partner with Ron Snyder, Federico Vaughan and George Strait with whom we share a common vision for Código 1530 and common ambition to strongly accelerate and strengthen the success of the brand,” Alexandre Ricard, chairman and CEO of Pernod Ricard, said.

Rothschild & Co acted as financial advisor to Código and Perkins Coie LLP acted as its legal advisor. Perella Weinberg Partners acted as financial advisor to Pernod Ricard and Debevoise & Plimpton LLP acted as its legal advisor.

Pernod Ricard was also advised on the acquisition by Mexican law firm Von Wobeser y Sierra, with a team led by corporate and M&A partner Luis Burgueño, and who was assisted by partners Patricia Kaim (intellectual property), Edmond Grieger (regulatory and environmental), Rodolfo Trampe (labor, executive compensation and benefits), and Luis Miguel Jimenez (foreign trade). Associates Max Morales and counsel Lourdes Salazar also participated, in addition to associates Ruben Villegas), Silverio Sandate and Alejandra Arizpe.

The firm also provided legal advice in connection with a preclosing corporate restructure in Codigo’s corporate group, and for the transfer process and documentation of the know-how of the master blenders, such as recipes, formulas and processes, to the new management of the business.