LONDON (Reuters) -Pernod Ricard said on Wednesday it agreed to sell the majority of its wine portfolio to the owners of Australia's Accolade Wines, disposing of a dragging division to focus on its core business of spirits.

The world's No.2 Western spirits maker plans to sell its wine brands from Australia, New Zealand and Spain, including well-known labels like Jacobs Creek, Stoneleigh and Campo Viejo, subject to regulatory approvals. It did not disclose a price.

The move will see Pernod hone its portfolio further towards spirits like Absolut Vodka and Martell cognac, especially liquors with a higher price tag. It will also continue to own champagne brands like Mumm and its U.S. and French wine brands, as well as labels in Argentina and China.

Pernod said in a statement the deal would allow it to direct its resources to brands that drive growth, while its former wine brands would belong to a dedicated wine player with global sales.

"(They) will benefit from the focus required to achieve their potential, reinforce their position and seize opportunities around the world," the spirits maker said.

Wine sales made up just 4% of Pernod's sales in its 2023 financial year, when they declined by 2%. The company has increasingly focused on expensive spirits as wine has lost drinkers to beer and spirits in Western markets. Consumption in China, a former high-growth wine market, is now shrinking.

The wine industry globally is grappling with a supply glut, forcing some producers to destroy vines, and recent years' harvests have also been hit by poor weather.

The consortium of investors that owns Accolade, Australian Wine Holdco Limited, comprises funds backed by Bain Capital and others. Accolade did not respond immediately to a request for comment.