Maxxium becomes world's third biggest drinks supplier

Maxxium, the marketing and distribution company has taken on board a fourth partner, Sweden's Vin & Sprit (V&S), to become the world's third...

Maxxium, the marketing and distribution company has taken on board a fourth partner, Sweden's Vin & Sprit (V&S), to become the world's third biggest drinks supplier.

The deal is set to put a new impetus behind Absolut, which was previously handled by Seagram's premium brands on-trade team, Ideal Brands.

Seagram's marketing campaign for Absolut is continuing at present, with promotional events for bars in Edinburgh and Glasgow last week.

But Maxxium UK, based in Stirling, is likely to look at new ideas for the brand once it has reviewed its strategy for the on-trade.

It intends to build on Absolut's success which saw a 24 per cent increase in the UK between 1999 and 2000, and also plans to drive up sales of Plymouth Gin, in which V&S owns a 50 per cent stake.

Over the past five years, Plymouth has grown from 4,000 cases in the UK to over 55,000 this year, backed by new packaging and a return to its original ABV of 41.2 per cent.

Maxxium's chief executive Roland van Bommel said: "Plymouth has great potential for the future and has an opportunity to become a category leader in gin.

"Before the arrival of V&S, we had no significant white spirit in our portfolio so Absolut and Plymouth Gin complement our portfolio significantly."

But Mr van Bommel said Absolut would not conflict with its UK vodka brands, Finlandia and Vladivar.

Maxxium is also taking on V&S' akvavits, the Scandinavian version of schnapps and aquavits, such as Aalborg and OP Anderson, and expects to build on the niche position of the category in the UK.

Finance director Rolf Cassergren said: "Akvavit is still a very small category in the industry but it has international potential."

The expansion of Maxxium will provide greater power behind its original portfolio, such as The Famous Grouse whisky, Rémy Martin cognac, Jim Beam bourbon and Cointreau liqueur.

Mr van Bommel said: "It will bring down costs which will go back to the shareholders who, we hope, will put it into marketing their brands."

He said more brands could join Maxxium in the future, but it would not expect a fifth partner for at least 12 to 18 months.

"The Maxxium vehicle could provide independent brand owners the possibility to have a cost-effective route to market," he said.