Pernod Ricard scraps Japanese deal with Kirin

Pernod Ricard has terminated its distribution arrangement with Japan’s Kirin brewery following the announcement of Kirin’s joint venture plan with Diageo.

Kirin has distributed Chivas Regal and other Pernod Ricard brands in Japan since 1 January 2006, but the brands will transfer to Pernod Ricard Japan from 1 October.

The standstill agreement between Kirin and Pernod Ricard, in which Kirin agreed not to transfer its Pernod Ricard shares before the Distribution Agreement came to an end, is also set to terminate on 30 September 2009.

Diageo and Kirin’s joint venture company, which will be called Diageo Kirin Company, will be 51% owned by Diageo and 49% by Kirin. The new firm is expected to start trading in June.

The new firm will develop business strategy for Diageo premium brands to be sold by Kirin in Japan. It will also provide nationwide brand marketing support to both companies, and on-trade sales support in the Tokyo, Osaka and Nagoya metropolitan areas.

The Diageo premium brands to be sold by Kirin and distributed through Kirin’s nationwide distributor network will include Guinness, Kilkenny and Smirnoff Ice, plus brands already handled by Kirin, including Captain Morgan rum, Crown Royal, Gilbey’s Gin, Gilbey’s Vodka, Godiva, Myers’s rum and Seagram’s Seven Crown.

Alan Lodge, 09.04.2009