By Abigail Summerville and Amy-Jo Crowley

NEW YORK/LONDON (Reuters) -Pernod Ricard is exploring a sale of its champagne brand G.H. Mumm, according to five sources familiar with the matter, as it looks to focus on premium labels in its portfolio.

The French spirits company behind Absolut Vodka and Jameson Irish whiskey is working with investment bank Rothschild & Co on the possible divestiture, that could attract interest from other spirits and beverage companies, the sources said.

The brand, a top French champagne house, is unlikely to be sold for less than three times its annual sales of 200 million euros ($207 million), one of the people said. The company has been selective in who it sells assets to and a sale may not happen, the person cautioned. The sources were speaking on condition of anonymity because the matter is not public.

“Pernod Ricard regularly assesses and evaluates its strategic opportunities and is continuously exploring options, including divestments or the streamlining" of businesses, the company said in a statement.

"This is a usual process in line with management’s mission of delivering value to shareholders, employees, clients and stakeholders." It added no decision about any particular action had been taken.

Rothschild declined to comment.

A sale of Mumm should it go ahead would be the latest shift towards a portfolio more focused on spirits. Last year, Pernod divested a large portfolio of wine brands. Pernod Ricard also owns the champagne brand Perrier-Jouet which is not part of the talks.

The drinks group cut its 2025 outlook on Thursday, citing challenging market conditions in the United States and China. It is now expecting a low single digit decline in organic net sales for the full 2025 year.

Its finance chief Helene de Tissot also said that tariffs imposed by China and the United States could deal an estimated 200 million euro blow to Pernod Ricard's business annually.

China has already imposed temporary tariffs on European brandy imports, hurting Pernod's sales of its Martell cognac brand, in retaliation for punitive duties on China-made electric vehicles into the European Union.

The second-largest Western spirits maker faces the threat of U.S. tariffs on Mexico, Canada and the European Union, which would affect products ranging from Irish and Canadian whiskies like Jameson to tequila and agave brands like Codigo 1530.

Pernod acquired G.H.Mumm in 2005. It was founded in 1827 in the Champagne region of the country and launched Mumm Napa in 1979 to make sparkling wines in California.

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Mumm is known for its motto "Only the Best" and its Cordon Rouge red ribbon label.

French champagne shipments fell by nearly 10% last year as economic and political uncertainties hit consumers' appetite for the sparkling wine in key markets such as France and the United States, the producers association said.

($1 = 0.9639 euros)

(Reporting by Abigail Summerville in New York and Amy-Jo Crowley in London. Additional reporting by Emma Rumney. Editing by Anousha Sakoui, Josephine Mason, Mark Potter and Susan Fenton)