Absolut to exit Maxxium on October 1
Maxxium is to cease distributing Vin and Sprit's (V&S) portfolio of spirits, which includes vodka brand Absolut, from October 1.
The announcement follows Pernod Ricard's purchase of V&S in March, and subsequent negotiations between the company with Maxxium and its shareholders - Beam Global, the Edrington Group and Rémy-Cointreau - as to when the former distribution agreements for Absolut would be wound up.
Rémy-Cointreau's departure from the group, announced in late 2006, is also scheduled to take place on March 30, 2009.
It paves the way for a new alliance between Beam Global and the Edrington Group to launch on March 31, 2009. Beam Global and Edrington will have joint ownership of sales and distribution efforts in the UK and nine other markets, including Spain, Russia, and China.
The alliance will account for 90 per cent of the current Beam Global/ Edrington sales generated through Maxxium - through brands including Jim Beam, Maker's Mark, The Famous Grouse, Canadian Club, and Sauza tequila.
Maxxium currently distributes the V&S portfolio in most major markets outside of the US. The Maxxium contracts had previously provided for an exit by V&S from distribution after a period of two years following its acquisition by Pernod Ricard together with the payment of a fee.
However, the Maxxium shareholders have agreed to speed up the process. In order to compensate Maxxium for this early termination, Pernod Ricard will pay Maxxium a fee of €59m (£73.8m) on October 1. The 25 per cent equity stake held by V&S in Maxxium will be redeemed by Maxxium for €60.4m (£75.5m) on March 30, 2009.
This transaction allows Pernod Ricard to take over the distribution of Absolut in most markets outside the US immediately and with no associated costs.
In a joint statement, Tom Flocco, president and chief executive officer of Beam Global, and Ian Curle, chief executive of The Edrington Group, said: "We are delighted to announce our new alliance. It enables the collective strength of our combined and complementary portfolios of premium brands to flourish in a more efficient and responsive distribution vehicle.
"It also will build on the success of Maxxium by providing improved agility at a local level, with increased access to consumers. Importantly, the alliance drives value and growth in many of our main markets."
