Pernod Ricard, the world's second-largest wine and spirits company, will take full control over the distribution of its Vin & Sprit brands, including Absolut Vodka, by ending its Maxxium distribution agreement.
Pernod Ricard and its domestic rival Remy Cointreau said in separate statements today the four partners of Maxxium had agreed to prematurely end the distribution venture as of October.
For Pernod the agreement allows it to push through synergies - estimated in March at as much as €150 million before tax - from its takeover of former Swedish state-owned Vin & Sprit sooner than provided for.
It would speed up integration of the Absolut label and accelerate the growth of the brand which is the jewel in the crown of V&S, it said.
As compensation, Pernod Ricard will pay Maxxium a fee of €59 million on October 1st, while Remy will pay €224 million in March 2009. The 25 per cent stake each held by Vin & Sprit and Remy will be redeemed by Maxxium for €60.4 million on March 30th, 2009.
Maxxium's other shareholders, the Edrington group, and Fortune Brands' Beam Global Spirits and Wines, separately announced a new international spirits distribution alliance beginning at the end of March next year.
Fortune Brands, maker of Jim Beam bourbon, said in its statement it had decided against distributing Stolichnaya vodka due to the uncertainty surrounding the brand's ownership. Stolichnaya is part of Russian company SPI which is looking to sell the label.