Pernod Ricard takes control of Absolut Vodka

Pernod Ricard has taken full control over distributing the Vin & Spirit brands, including Absolut Vodka.

Pernod Ricard is to pay Maxxium, which distributes Vin & Spirit brands in most countries, €59m (£48m) on 1 October. The 25% equity stake held by Vin & Sprit in Maxxium will be redeemed by Maxxium for €60.4m (£49m) on 30 March 2009.

The four shareholders of Maxxium today announced they had agreed to the early termination of the distribution of Vin & Spirit. The Maxxium contracts allowed an exit by Vin & Sprit from distribution after two years, following Vin & Spirit's acquisition by Pernod Ricard.

Pernod Ricard said: "This transaction allows Pernod Ricard to take over the distribution of Absolut in most markets outside the US immediately and with no associated costs.

"This will enable Pernod Ricard to implement cost synergies sooner than originally expected and thereby leverage the portfolio synergies in these markets through an accelerated integration of Absolut within Pernod Ricard."

Pernod Ricard boss Patrick Ricard said: "Following the agreement to take over the distribution of Absolut in the US on 1 October 2008, the exit from the Maxxium distribution agreement at the same time is excellent news for Pernod Ricard.

"Only two months after closing the acquisition of Vin & Spirit, the Absolut brand will be distributed in almost every market around the world by our powerful distribution network, accelerating the strong growth of the brand.

"Through its own dynamism and the overall strengthening of our portfolio of premium and luxury brands, Absolut further improves our growth profile."

Comparatively, Remy Cointreau is due to pay around €167m to exit its distribution agreement with Maxxium next March.