Rémy share hike fuels speculation of Absolut deal

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A dramatic rise in the share price of Rémy-Cointreau has increased speculation that the company and its Maxxium joint-venture partners may be close to securing the distribution rights to Absolut Vodka.

Rémy's share price in Paris increased by 9% and 4% in the last two days, and continued to rise at 1pm UK time today, after three days of sharp falls.

Absolut, owned by Sweden's Vin & Sprit, is distributed by Seagram. The sale of Seagram to Pernod Ricard and Diageo led Vin & Sprit to exercise its right to renegotiate the Absolut distribution agreement. Strong industry rumours that Rémy-Cointreau is close to a deal for the rights have now been bolstered by the price rises. The partners are known to have held advanced talks with the Swedish company. The portfolio would offer a good fit.

• Absolut accounted for 507,000 nine-litre cases in global duty-free in 1999, according to Global Drinks Record.