Bacardi and Brown-Forman to end UK distribution alliance

Spirits giants Brown-Forman and Bacardi have confirmed they will end their UK distribution deal next year after 17 years of working together.

A statement from both companies said they have both strengthened their respective positions in the UK marketplace since forging a distribution partnership 17 years ago, and “both agree that the time is now right for the two companies to take control of their own businesses and portfolios in the UK. ”

Bacardi and Brown-Forman first formed a cost-sharing distribution alliance in May 2002, which allows both companies to share their logistic operations but market the brands within their portfolios separately.

The two companies currently use the Bacardi sales team and logistics operation under the banner of Bacardi Brown-Forman Brands.

The decision to not renew this partnership means the spirits giants will no longer work together on brands such as Jack Daniels, Woodford Reserve, Bacardí rum, and Grey Goose vodka.

Instead, Bacardi has said it will “dedicate 100% of its resources and focus on delivering the full potential of its premium portfolio”, including brands such as Bacardí rum, Bombay Sapphire gin, Grey Goose vodka, Patrón tequila, Martini vermouth, St-Germain liqueur, as well as doubling its efforts to promote newer products within the portfolio, such as Bacardí Añejo Cuatro, Bacardí Spiced and Martini Fiero.

Brown-Forman said it plans to establish its own distribution company in the UK to “further the growth of the Jack Daniel’s Tennessee Whiskey family of brands”, as well as driving the development of its broader brand portfolio, including Woodford Reserve bourbon, Herradura and el Jimador Tequilas, Finlandia vodka and Slane Irish Whiskey.

According to a statement, both companies will work together on a “seamless transition”, ending their partnership in April 2020.