UK/CHILE: Veramonte makes move from Constellation to Matthew Clark
Chilean wine group Veramonte has stripped out its distribution deal in the UK on-trade, moving directly to Matthew Clark.
The Chilean wine producer said today (12 August) that the move, which covers all seven of its varietals in Matthew Clark's wine list, "ensures a direct relationship without the Constellation interface".
When contacted by just-drinks, a spokesperson for Veramonte said that the move has come about "following the end of the contractual agreement between the two parties. It was a natural step for Veramonte to come on board with Matthew Clark."
In April 2007, Constellation Brands sold off half of its Matthew Clark wholesale business in the UK to Punch Taverns. "Constellation is primarily a producer and marketer of alcoholic drinks," a spokesperson told just-drinks at the time. "They're not a dedicated wholesaler and distributor, so Matthew Clark is a non-core business. The company also gets GBP85m from the move."
As part of the new deal with Matthew Clark, Veramonte has also appointed a UK representative, Leo Morris, who is responsible for working in partnership with the distributor to grow the Veramonte portfolio.
Agustin Huneeus, Veramonte's managing partner, said: "This year we begin a new chapter within the UK market. At Veramonte the belief is that we need to create the best possible partnerships within the UK, and work with people who can build the Veramonte brand as a quality led premium Chilean wine.
"We have been working with Matthew Clark for many years and we are thrilled to finally be working with them directly."
Australian Vintage and Constellation Brands could announce a deal to merge some of their wine operations early in 2010....
Constellation Brands stock fell as much as 7% on Wednesday (16 December) as news broke of a legal battle with joint venture partner Grupo Modelo. Michelle Russell looks at the early fallout....
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