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Pernod pulls out of Maxxium
Pernod Ricard has agreed to withdraw Absolut vodka, and the rest of the newly-acquired Vin & Sprit portfolio, from Maxxium on October 1.
This follows Rémy-Cointreau’s announcement it will leave the distribution network on March 30, 2009. Other Maxxium members, Beam Global and The Edrington Group will retain a sales and distribution alliance.
Pernod Ricard’s latest announcement follows last week’s decision to terminate the distribution agreement for Vin & Sprit brands in the US, which was handled by Future Brands – a joint venture company between V&S and Fortune Brands, owner of Beam Global.
Outside the US, distribution for the Vin & Sprit portfolio in most major markets is handled by Maxxium, and Pernod Ricard, by ending both distribution contracts, will now control V&S brands in almost all markets.
To exit Future Brands, Pernod Ricard has had to pay Fortune US$230 million in pre-tax proceeds – although it will receive $100m back in return for Cruzan rum, which Pernod has sold to Fortune.
To end the Maxxium agreement, Pernod will pay Maxxium a fee of €59 million on October 1. The 25% equity stake held by Vin & Sprit in Maxxium will be released to Maxxium for €60.4 million on March 30, 2009, when Rémy-Cointreau will leave the distribution network.
Meanwhile, the remaining Maxxium shareholders, Beam Global and The Edrington Group, are forming a new international sales and distribution alliance, which will be launched on March 31.
Donard Gaynor, senior vice president, managing director, international, Beam Global, and Bill Farrar, Edrington’s group sales and marketing director, who co-chair the Maxxium executive committee, said: “In a consolidating drinks market, it is beneficial that we find innovative, cost-efficient routes-to-market and this alliance offers significant operational and market advantages.”
Pernod Ricard’s Patrick Ricard said: “Following the agreement to take over the distribution of Absolut in the US on October 1st 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 & Sprit, 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.”
Patrick Schmitt 03/09/08