HomePress|News & Press Releases|Press releases|Agreement between Maxxium shareholders for an early termination of the distribution contract for Vin & Sprit brands with effect from October 1st 2008.

Press

Pernod Ricard provides journalists with all information needed to fully understand the Group and its strategy, along with resources and news about the Group and its brands.

Agreement between Maxxium shareholders for an early termination of the distribution contract for Vin & Sprit brands with effect from October 1st 2008.

09/03/2008

Integration of Vin & Sprit portfolio, including ABSOLUT, into Pernod Ricard’s distribution network on this same date.

Agreement between Maxxium shareholders for an early termination of the distribution contract for Vin & Sprit brands with effect from October 1st 2008.
Pernod Ricard is pleased to announce that the four shareholders of Maxxium (Vin & Sprit / Pernod Ricard, Remy Cointreau, The Edrington Group and Beam Global Spirits & Wine) have entered into an agreement for the early termination of distribution by Maxxium of the Vin & Sprit brands, and in particular ABSOLUT VODKA. This termination will take effect on 1st October 2008.

Maxxium currently distributes the Vin & Sprit portfolio in most major markets outside of the US. The Maxxium contracts had previously provided for an exit by Vin & Sprit from distribution after a period of two years following its acquisition by Pernod Ricard together with the payment of a fee.

The Maxxium shareholders have now agreed an accelerated exit of Vin & Sprit from Maxxium. In order to compensate Maxxium for this early termination, Pernod Ricard will pay Maxxium a fee of €59 million on 1st October 2008. The 25% equity stake held by Vin & Sprit in Maxxium will be redeemed by Maxxium for €60.4 million on 30th March 2009.

This transaction allows Pernod Ricard to take over the distribution of ABSOLUT in most markets outside the US immediately and with no associated costs.
This will enable Pernod Ricard to implement cost synergies sooner than originally expected and thereby leverage the portfolio synergies in these markets through an accelerated integration of ABSOLUT within Pernod Ricard.

Commenting on this agreement, Patrick Ricard stated :

«Following the agreement to take over the distribution of ABSOLUT in the US on October 1st 2008, the exit from the Maxxium distribution agreement at the same time is excellent news for Pernod Ricard. Only two months after closing the acquisition of Vin & Sprit, 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.»

Patrick Ricard also stated:

«Through its own dynamism and the overall strengthening of our portfolio of premium and luxury brands, ABSOLUT further improves our growth profile.»
 

Return to the news