UK: Edrington Group acquires Cutty Sark, divests Glenrothes to Berry Bros

Berry Bros & Rudd (BB&R) is set to sell the Cutty Sark blended Scotch whisky brand to The Edrington Group, with The Glenrothes single malt brand heading in the opposite direction.

The UK-based wine and spirits merchant announced earlier today (3 February) that it will acquire The Glenrothes from Edrington, which has signed long-term supply agreements to provide whisky fillings and stocks to BB&R. Edrington will retain ownership of The Glenrothes distillery.

As part of the transaction, Edrington will acquire all of Cutty Sark's distribution contracts. Edrington's sales-and-distribution alliance, Maxxium, is set to continue to distribute The Glenrothes in key international markets and is also expected to provide a distribution option for other brands within BB&R’s spirits portfolio.

The agreement is due to be concluded by April, while financial details for the transactions have not been disclosed.

"In an ever-consolidating drinks industry, this agreement offers significant operational synergies and market advantages,” said Ian Curle, chief executive of Edrington.

“It improves our distribution in key territories and strengthens our position as an independent premium brand company.”

In Spain, Cutty Sark’s largest market, the distribution agreement with Importaciones Varma will come to an end prior to the completion of the sale of Cutty Sark. The brand will then be handled by Maxxium Espana,. In Greece, the distribution of Cutty Sark will remain with WS Karoulias, which will continue as a wholly-owned subsidiary of BB&R.

Edrington has has supplied blended whisky for Cutty Sark for around 70 years and is currently responsible for all aspects of producing Cutty Sark.