By Ian Neubauer
Maxxium Worldwide announced today (September 4) it will cease distribution of Absolut vodka and other Vin&Spirit (V&S) brands effective October 1 — more than a year ahead of schedule.
The announcement follows the acquisition of V&S by French distributor Pernod Ricard in March and recent discussions between Pernod Ricard and Maxxium shareholders (V&S, Rémy-Cointreau, Beam Global Spirits & Wine and The Edrington Group).
The discussion resulted in the termination of a partnership that was not scheduled to end until 2010 after Pernod Ricard agreed to pay Maxxium $103 million in compensation in accordance to contractual agreements.
Maxxium said the announcement would not affect brand building and distribution activities on the rest of its portfolio.
“The shareholders and the Maxxium organisation are focused on maintaining the momentum that has allowed Maxxium to deliver record results for the last four years,” the company said in a statement.
“Business at Maxxium will continue unchanged until the planned exit of Rémy-Cointreau on the 30th of March, 2009.”