Early termination of the distribution agreement for Vin & Sprit brands by Future Brands in the US, effective October 1st 2008. Disposal of Cruzan rum brand to Fortune Brands.08/28/2008
Pernod Ricard is pleased to announce the signing of an agreement with Fortune Brands for an early termination of the distribution by Future Brands of Vin & Sprit brands in the US, and in particular Absolut, effective October 1st 2008.
The initial contractual term of the distribution agreement for V&S brands by Future Brands, a joint venture company between V&S and Fortune Brands, was scheduled to end on February 2012. The joint venture partners have agreed to an early termination of this agreement on October 1st 2008 with Pernod Ricard paying to Fortune Brands a compensation of US$ 230 million (€156 million). Together with the termination of the distribution, V&S will also stop being a shareholder in Future Brands.
Absolut and the rest of the V&S portfolio will join Pernod Ricard USA’s portfolio of leading spirits and wines brands on October 1st 2008. The savings generated by stopping the payments of commissions to Future Brands, the quicker than anticipated implementation of cost synergies on our North American structures and the very positive impact of an immediate combination of our brand portfolios in the US will more than offset the costs of exiting this distribution agreement.
Commenting on this agreement, Patrick Ricard stated:
“The immediate takeover of Absolut distribution in the US by Pernod Ricard USA is excellent news for the Group. We will now market and distribute the leading imported spirit and Premium vodka in the U.S., which greatly enhances our position. Through both our size and the quality of our portfolio, we are now the clear number two in the North American spirits market. These factors will allow us to strengthen our growth in this key market.
I also wish all the best and a continued success in the future for the Cruzan rum brand and the Cruzan teams within Fortune Brands.”
About Pernod Ricard
Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of € 8,558 million in 2014/15. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier- Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, Graffigna and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,000 people and operates through a decentralised organisation, with 6 “Brand Companies” and 80 “Market Companies” established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard’s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.
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