By Andy Young
Coca-Cola Amatil (CCA) and Beam Suntory have announced a new distribution partnership in New Zealand.
The 10-year deal starts on 1 October 2015 and will make CCA one of the largest distributors of beverages in New Zealand and follows a similar deal being announced in Australia in June.
As part of the new agreement, CCA's New Zealand business will be responsible for the sales and distribution of the Beam Suntory spirits portfolio in New Zealand, including Jim Beam Bourbon, Canadian Club, Midori liqueur, and its Japanese whiskies, as well as the manufacture, sales and distribution of its ready-to-drink spirits portfolio.
The new agreement fully integrates the Beam Suntory spirits and spirit-based RTD range alongside CCA's existing New Zealand beer and cider portfolio. Beam Suntory sales team members will transfer to CCA, while marketing, supply chain and other functions will remain part of Beam Suntory New Zealand.
CCA New Zealand managing director Chris Litchfield said: "The agreement signifies a very exciting step in the long-term partnership between CCA and Beam Suntory.
"As well as further strengthening CCA’s New Zealand alcohol portfolio, our new agreement deepens the relationship between our two companies, locally and across Australia and The Pacific.
"Following the announcement of a 10 year partnership between Beam Suntory and CCA in Australia, this is testament to the quality of our relationship and commitment to being the number one beverage distributor and manufacturer. This new partnership represents a very exciting portfolio expansion, which gives us an even greater portfolio to offer our customers across the country."
Beam Suntory interim Oceania managing director Peter Gunning added: "This is an exciting development for Beam Suntory after the announcement in June with CCA in Australia and underscores the strength of our distribution partnership.
"The combination of commercial, innovation and manufacturing expertise, plus CCANZ’s customer base, will help us to lead the market in the RTD category by discovering new ways for consumers to enjoy our brands. We will leverage CCA’s vision providing an exceptional portfolio of brands to create value in the licensed premise, and further increase our share in the market as the leading spirits company in New Zealand."
In New Zealand, the spirits market is over one million 9lt cases and the RTD market is over six million 9lt cases.