By Ian Neubauer
Pernod Ricard has commenced integrating Absolut and the Vin&Spirit (V&S) brand portfolio into its network following the early termination of a contract between V&S and its incumbent distributor, Maxxium Worldwide.
The new agreement will allow Pernod Ricard to take over the distribution in most markets outside the US immediately and with no associated costs. It will also enable Pernod Ricard to implement cost synergies sooner than expected and thereby leverage synergies in those markets.
“Following the agreement to take over the distribution of Absolut in the US on October 1, 2008, the exit from the Maxxium distribution agreement at the same time is excellent news,” Pernod Ricard spokesperson, Patrick Ricard, said in a statement.
“Only two months after closing the acquisition of V&S, the Absolut brand will be distributed in almost every market around the world by our powerful distribution network, accelerating the strong growth of the brand.”
Pernod Ricard has undergone rapid growth since it was formed in 1975 to become a co-leader in the global wine and spirits industry.
It purchased part of Seagram’s in 2001, Allied Domecq in 2005 and V&S in March for $9.79 billion.
The Pernod Ricard brand portfolio includes Ricard Pastis, Ballantine’s, Chivas Regal and The Glenlivet Scotches whiskies, Jameson’s Irish Whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët Champagnes, as well Jacob’s Creek and Montana wines, in addition to the new V&S labels.