Brown-Forman has handed the distribution of its stable of spirits brands to Coca-Cola HBC in another market
The two companies have added a twelfth territory to their set of contracts and will work together in Switzerland from next month.
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“Coca-Cola HBC Switzerland has strong customer relationships, excellent local market knowledge and an efficient sales and logistics infrastructure,” Maria Navas Peire, VP and MD for the DACH markets and the Netherlands at Brown-Forman, said.
Coke bottler Coca-Cola HBC started distributing for Jack Daniel’s owner Brown-Forman in 2008 through a deal in Hungary.
Brown-Forman does not disclose its sales by market outside its five biggest territories – the US, Mexico, Germany, Australia and the UK.
In the year to the end of April, the El Jimador Tequila owner generated sales of $3.93bn, a decline of 1.1% on 12 months earlier. In the US, which accounted for 42% of those sales, Brown-Forman reported a 7% decline in sales and a flat organic performance.
The company handles its own distribution in 17 markets, including European territories such as Germany, Italy and the UK.
Switzerland-based Coca-Cola HBC, meanwhile, also distributes products for spirits majors Bacardi and Edrington.
Jürg Burkhalter, the general manager of the bottler’s Swiss arm, said the deal with Brown-Forman was “an important strategic step in the further development of Coca-Cola HBC Switzerland”.
He added: “It enables us to serve our customers in an even more compelling manner and to jointly tap into new growth opportunities.”
Three years ago, Coca-Cola HBC, one of The Coca-Cola Company’s two principal bottlers in Europe, acquired the Finlandia vodka brand from Brown-Forman.
It struck a deal to pay $220m for Finlandia and Brown-Forman Finland, the subsidiary housing the brand.
