By Andrew Starke
Byron Bay Beverages has ended a distribution, sales and marketing arrangement with Barons Brewing citing the latter’s failure to honour contractual obligations and unsatisfactory customer service.
The decision is the latest blow to the embattled Baron’s Brewing which has repeatedly denied that it is experiencing financial difficulties and is unable to pay suppliers.
General manager of Byron Bay Beverages, Glenn Cary, told TheShout that financial considerations were a deciding factor in the decision and that the company is now hoping to rebuild its brand in the marketplace by properly servicing both new and existing customers.
He said the company would handle more of its own distribution in the interim but has entered into talks with potential partners.
“Barons have failed to honour their contractual obligations and Byron Bay has therefore terminated Barons’ exclusivity rights,” he said in a statement.
“Byron Bay Beverages has now taken back full control of their operations and distribution. Byron Bay regrets the unsatisfactory service that was provided under the previous contractual arrangement and sincerely apologises to all of it’s customers that have not been serviced adequately.”
Byron Bay Beverages and Barons signed an agreement on November 6, 2009, conferring on Barons the exclusive global rights to all sales, marketing, manufacturing and distribution for the brand outside of its own Byron based brewery operations.
Under the agreement, Barons Brewing was to hold the rights for the next five to 15 years but this has ultimately lasted for less than a year.
A Barons Brewing spokesperson was not immediately available to comment.