Absolut-Jim Beam deal confirmed

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As reported on TRW yesterday, Swedish liquor supplier Vin & Sprit (V&S) has completed a deal for the distribution of flagship brand Absolut vodka. In partnership with Jim Beam Brands (JBB), the company has created an equally owned joint venture called Future Brands LLC for the distribution of Absolut in the US. In other regions, excluding the Nordic area, Absolut will be distributed by Maxxium, the sales and marketing distribution joint venture in which V&S becomes a fourth, equal partner with JBB, Rémy Cointreau and Highland Distillers.

V&S has invested nearly $650m in the new deal, which also hands the supplier a 10% share in JBB with an option to purchase a further 9.9%. V&S president and ceo Peter Lagerblad commented: "These agreements establish a powerful world-wide distribution organisation for V&S and our leading international brand Absolut. We have secured a larger part of the value chain and V&S is also now in a position to have greater influence over the distribution of its products. Our objective is to use these new distribution arrangements as a platform to become one of the leading international spirits companies."

TRW understands that no decision has yet been made on how Absolut will be distributed in duty-free. The brand is one of the fastest-growing liquor products in the channel, with sales of 507,000 nine-litre cases in 1999 according to Global Drinks Record. The deal will also have implications for the distribution of other brands in V&S' portfolio, notably those it acquired after the purchase of Danish Distillers, owner of Danska vodka.

Danish Distillers senior vice-president and international director Erik Juul-Mortensen said: "At this early stage it is impossible to say anything about the possible effects and implications this may have on the distribution of the brands in the Danish Distillers portfolio. The coming weeks and months will be used to evaluate the distribution situation closer and in more detail."

Pictured (left to right): Maxxium chief executive Roland van Bommel, Absolut vice president-Europe Africa Asia Pacific Andreas Berggren and V&S chief financial officer Rolf Cassergren.