Pernod Ricard USA is to sell its Seagram's Vodka brand. The company said yesterday (12 July) that it has reached an agreement with Young's Holding's Inc. and its affiliates to sell the brand in the US, inclusive of duty free and all US territories and possessions.

The sale, which is expected to be completed by 22 July, will allow Pernod to focus exclusively on Stolichnaya as its sole vodka in the US, the company said. Financial details were not disclosed.

The Federal Trade Commission and Department of Justice have both granted clearance allowing the transaction to proceed.

Seagram's Vodka was launched by Pernod Ricard USA in October 2002, reaching sales of 640,000 cases in 2004.

"The Seagram's Vodka brand has shown great potential and remarkable growth in the three years since its introduction and we are very excited to have this wonderful opportunity," said Vernon O. Underwood, chairman of Young's.

Following the introduction of Seagram's Extra Smooth Vodka, several flavoured varieties were added beginning with Apple, Raspberry, and Vanilla in May 2003. "The extension of the flavoured vodkas, in particular the Apple, took the brand to a new level," said Kevin Fennessey from Pernod Ricard USA. "The consumer response was well beyond our initial expectations."

Young's Holdings is a privately-held holding company that distributes wine and spirits nationally through a number of subsidiaries and affiliated companies.