By James Atkinson

Woolworths Liquor Group subsidiary Pinnacle Drinks has confirmed it has made a "strategic investment" in premium spirits importer SouthTrade International.

Woolworths officially confirmed the deal in documents filed with the ASX earlier this year, which declare the retailer's acquisition of a controlling stake in the company on October 31, 2013.

The documents state that SouthTrade contributed $500,000 in profit after tax to the retailer's bottom line in the half year to January 5.

The two companies have moved to clarify the situation after rumours of the tie-up began to circulate the liquor trade in recent weeks.

A Pinnacle spokesperson told TheShout that the company had "made a strategic investment in SouthTrade International, one of Australia’s leading importers of premium alcohol beverages, particularly focused on spirits".

"SouthTrade’s day-to-day operations will continue unchanged and under the current management," the spokesperson said.

"SouthTrade will maintain its existing positive relationships with its current customers."

SouthTrade co-founder Tony Stubley told TheShout the company was "fortunate to formalise a relationship with Pinnacle last year". 

"The alliance has enabled us to continue our strong growth by investing in our brands and our people, and to continue to offer the Australian liquor industry the highest quality brands and professional support," he said.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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