UK/EUR: Maxxium UK sales, profits jump
Maxxium UK boosts Beam Global Spirits & Wine, Edrington Group
The UK arm of Maxxium has reported strong rises in both net sales and profits for its most recent fiscal year, driven by the venture's core brands and the addition of a travel retail business unit.
Maxxium UK's net sales rose by 50% for the 12 months to the end of March 2010, to GBP210m (US$325m), the distributor said in accounts filed on 30 December. Profits rose by 52% on the previous year, to GBP2.7m, said the group, which is a 50-50 joint venture between Beam Global Spirits & Wine and The Edrington Group.
The venture benefited from the creation of a new distribution alliance between Edrington and Beam Global at the beginning of the reporting period, following the departure of Remy Cointreau from the Maxxium Worldwide distribution partnership.
Maxxium Travel Retail Ltd, a wholly-owned subsidiary created in April 2009, significantly boosted profits and sales at Maxxium UK. The division distributes drinks brands in travel retail markets in several European countries.
At the same time, Maxxium UK said that its "core brands" also performed well during the year, and that it expects sales to continue to increase. "A number of initiatives are being pursued to develop the performance of the business, including the introduction of new products," said Maxxium.
However, the distributor's future structure may depend upon the survival of Beam Global. Beam's owner, Fortune Brands, has said it will split the drinks division from its home and golf businesses and several analysts believe that this could lead to takeover offers for Beam, which has brands such as Jim Beam Bourbon, Sauza Tequila and Courvoisier Cognac.
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