Rémy Cointreau to terminate distribution agreement with Maxxium

Tina Milton

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Rémy Cointreau is to end its distribution arrangement with Maxxium Worldwide in 2009

Rémy Cointreau, with consent from its partners in the Maxxium distribution joint venture, has served notice to terminate its distribution agreement with Maxxium Worldwide in March 2009. This will enable Rémy Cointreau to consider alternative distribution options in the company’s priority markets.

Maxxium Worldwide is the premium liquor and fine wines distribution joint venture for Rémy Cointreau, Beam Global Spirits & Wine, The Edrington Group and V&S Group. It was established in 1999 and expanded to include V&S Group in 2001 and operates in most liquor markets outside the Americas, Africa and India.

Maxxium Worldwide CEO Ben van Doesburgh said: “The liquor industry has  experienced big change and consolidation over the past few years. Maxxium has benefited from those changes as an alternative to consolidation: founded in 1999 as a reaction to the creation of Diageo, the addition of V&S in the wake of the Seagram acquisition by Diageo and the addition of several Allied Brands when Allied Domecq was purchased by Pernod Ricard and Beam Global Spirits & Wine last year.

“As a result of those changes and strong organic growth, Maxxium has grown from less than €1bn ($1.2bn) turnover in 1999 to €1.5bn ($1.9bn) two years ago and about €2bn ($2.6bn) today. Based on its strong portfolio of premium liquor brands, Maxxium has been able to grow core brands faster than most competitors over the past two years. We feel deeply committed to all brands we represent and are determined to continue their growth ahead of competition. We will achieve that by continuing to create superior visibility and activity for our brands in the markets we operate in. With the benefit of two years' notice and the related financial compensation, we feel we can manage the exit of the Rémy Cointreau brands without adverse effects for our other shareholders and third-party brands.”