Beam Suntory buys stake in SA distributor

Beam Suntory has strengthened its presence in Africa, which it says has “phenomenal” potential for growth, by acquiring a 50% stake in a South African-based spirits distributor.

Beam Suntory’s brands include Japanese whisky Hibiki and bourbon brands Maker’s Mark and Knob Creek

ABV Brands Propriety was founded in 2010 by Ross Calow and Daniel Hawkins in partnership with Cyprus-based FIX Wines and Spirits. An independent distributor, its portfolio has grown to including brands such as The Macallan, Famous Grouse and No.3 Gin having secured partnerships with producers including Edrington, Berry Brothers & Rudd and Beam Suntory.

Today, Beam Suntory confirmed it had acquired a 50% stake in the distributor, purchasing shares from Fix Wines and Spirits, with the remaining 50% held by ABV Brands co-founders and management team.

The deal represents a “strategic extension” of a partnership which has existed since 2010, when ABV Brands first became the appointed distributor in South Africa for Beam Suntory.

ABV Brands reported growth in sales of Beam Suntory’s brands by more than 260% since 2010, driven by double-digit growth of its Jim Beam and Courvoisier brands in the continent.

“I am delighted to announce our strategic investment in ABV Brands in South Africa, which extends our successful partnership with ABV Brands”, said Albert Baladi, president international at Beam Suntory.

“The African spirits market has phenomenal growth potential for Beam Suntory and our global whisky and Cognac portfolio is ideally suited to capture the growth of premium spirits. This partnership gives us a beachhead, and we will continue to look for opportunities to become a key player in Sub-Saharan Africa by expanding our footprint, growing our brands and securing strong routes to market.”

On its decision to sell its stake in the company to Beam Suntory Igor Boyadjian, of FIX Wines & Spirits, said it was time for ABV Brands to “play in a different league”, giving Beam Suntory the opportunity to “define a new and even more ambitious vision for the business.”

Under the terms of the deal, ABV Brands will continue to focus on growing and distributing its entire current spirits portfolio in South Africa, which includes brands owned by Edrington and Berry Brothers & Rudd.

Beam Suntory counts brands such as Jim Beam, Maker’s Mark and Knob Creek bourbon and Japanese whiskies Kakubin, Yamazaki, Hakushu and Hibiki among its portfolio.