Edrington and Beam Suntory in distribution switch
Brand strength: distribution will be split
Spirits companies Edrington and Beam Suntory are ending their joint venture distribution agreements in the UK and Spain and will move to fully-owned structures.
Edrington, owner of Famous Grouse and the Macallan, is to take operate Edrington-Beam Suntory UK.
Beam Suntory will assume full ownership of Maxxium Spain. The agreement will take effect from 2 August, subject to regulatory approval.
Both distribution companies will continue to distribute their current portfolios of Beam Suntory and Edrington brands.
The equity swap will allow both businesses to reduce complexity, improve agility, make decisive investments and expand opportunities for employees as both businesses become part of larger international companies.
Following completion of the deal, Edrington will employ more than 1,200 staff in the UK, mainly in Scotland, with 35 in London.
Huw Pennell, Edrington’s regional managing director for Europe, said: “We are excited by the potential to work more closely with the talented Edrington-Beam Suntory UK team to accelerate this strategy while continuing to strengthen our presence of The Famous Grouse in our home market.
“Spain is a priority investment market for Edrington, and we are particularly pleased that this agreement will enable us to continue to work closely with the excellent Maxxium Spain team in Madrid to accelerate the growth of The Macallan in the key cities of Madrid and Barcelona and particularly Brugal rum in its No 1 international market.”
This will be the first time that Beam Suntory will have full ownership of its route to market in Spain, and it plans to invest in Maxxium Spain’s accelerated growth and in building its portfolio of premium brands, which includes Jim Beam and Roku gin.