Absolut destined for Maxxium, sources suggest

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Mounting industry speculation suggests that the Maxxium group-the joint venture between Jim Beam Brands, Rémy Cointreau and Highland Distillers-is close to securing the lucrative international distribution rights for Absolut Vodka. Owned by Sweden's Vin & Sprit, the brand is currently distributed by Seagram, whose wine and spirits group was purchased by Diageo and Pernod Ricard last December.

Reports from the US suggest that Fortune Brands, the owner of Jim Beam, had emerged as the front runner in the race for Absolut. Reliable industry sources confirmed that the parties were in advanced talks. The rumours gained further credence following a recent sharp rise in Rémy Cointreau's share price after three days of decline.

Meanwhile, the future of state-owned Vin & Sprit has been discussed in the Swedish parliament. Opposition parties are keen to sell the company and raise over SKr45bn ($4.7bn). They also argue the time is right for a sale, with the distribution rights for Absolut still up for grabs. But the ruling party believes the supplier is a valuable source of continuing income and opposes the sale.

Absolut is the second biggest vodka in duty-free, accounting for 507,000 nine-litre cases in 1999 according to Global Drinks Record. It is one of the channel's fastest-growing liquor brands, aided by strong marketing and Seagram's extensive distribution network.