Pernod Ricard has continued its divestment programme with the sell-off of its Tia Maria coffee liqueur brand to Illva Saronno.

The company confirmed late today (27 July) that it has sold the brand to the Italian wine and spirits firm for EUR125m (US$177.7m).

As part of the deal, Pernod's Chivas Brothers division will produce Tia Maria for Illva Saronno, while "arrangements have been made for short term transitional distribution services to be provided by Pernod Ricard affiliates", the company said. Some longer-term distribution agreements will be entered into in certain markets, Pernod noted.

"The sale of Tia Maria together with other disposals completed since the acquisition of Vin & Sprit in July 2008 enables Pernod Ricard to continue its debt reduction program having achieved disposals totalling in excess of EUR700m," the company said.

While Tia Maria is the second-largest coffee liqueur brand, Pernod also owns the market leader, in Kahlua.

Family-owned Illva Saronno also owns the Disaronno Originale liqueur brand, along with Artic vodka and wine brands Vini Corvo and Cantine Florio.

For a detailed list of Pernod's divestments since acquiring Vin & Sprit, click here.