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3rd February 2010 |
 British
fine wines and spirits merchant, Berry
Bros. & Rudd (BB&R), today announced
that it has finalised an agreement under
which it will sell the Cutty Sark
blended Scotch whisky brand to The
Edrington Group.
Under the deal, BB&R will acquire The
Glenrothes single malt brand from
Edrington, which has signed long-term
supply agreements to provide whisky
fillings and stocks to BB&R. Edrington
will retain ownership of The Glenrothes
distillery.
The transaction will also involve
Edrington acquiring all distribution
contracts on Cutty Sark in force at the
time of completion. The Edrington
sales-and-distribution alliance (Maxxium)
will continue to distribute The
Glenrothes in key international markets
and is also expected to provide a
distribution option for other brands
within BB&R’s super-premium spirits
portfolio.
The agreement is due to be concluded by
April 2010.
Hugh Sturges, managing director, BB&R,
said the sale of the Cutty Sark brand
and
 purchase of The Glenrothes was in
line with the company´s long term vision
of concentrating investment resources
behind developing a world leading
position as a supplier of fine wines and
super-premium spirits. “The strategy
that supports this vision is already
reaping dividends, particularly within
emerging markets” said Mr. Sturges. “We
are convinced that future growth will
come from us focusing even more on our
strengths. That means targeting our
sales and marketing efforts on those
brands and sectors where we can compete
most effectively and develop market
positions that will drive real value
long term. We therefore believe this
agreement is in the best interests of
the brands concerned and both
companies.”
Ian Curle, chief executive of Edrington,
said the deal would enhance the group´s
position as Scotland´s leading
international premium spirits company
and strengthen its position in the
Scotch whisky category with an
unrivalled and well-established
portfolio of leading blended and single
malt brands.
"In an ever-consolidating drinks
industry, this agreement offers
significant operational synergies and
market advantages. It improves our
distribution in key territories and
strengthens our position as an
independent premium brand company," said
Mr. Curle.
Edrington has enjoyed a long-term
partnership with BB&R under which it has
supplied blended whisky for the Cutty
Sark brand for over 70 years and is
currently responsible for all aspects of
producing Cutty Sark. Today, Cutty Sark
is a top three whisky brand in
Mediterranean countries such as Greece,
Spain and Portugal, where it is popular
in the fast-moving on-trade. The brand
continues to have a strong presence in
America and is increasing its footprint
in Asia and developing markets.
In Spain, Cutty Sark’s largest market,
the distribution agreement with
Importaciones Varma will come to an end
prior to the completion of the sale of
Cutty Sark. The brand will then be
handled by Maxxium Espana, a 50/50 joint
venture between Edrington and Beam
Global Spirits & Wine. In Greece, the
distribution of Cutty Sark will remain
with WS Karoulias, which will continue
as a wholly-owned subsidiary of BB&R.
BB&R said the acquisition of The
Glenrothes reflected its ambition to
grow its super-premium business as the
brand was one of the world’s fastest
growing single malts.
The long standing relationship between
BB&R and Edrington will continue under
the new arrangement. Both companies will
continue to work hand-in-hand on
projects of mutual interest that aim to
maximise shareholder value and support
the long-term development of their
brands.
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