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What is Passoa and how is Remy Cointreau, Lucas Bols's new venture structured? - Focus

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Earlier today, Rémy Cointreau and Lucas Bols announced the creation of a joint-venture to handle the Passoã liqueur. In time, Lucas Bols will look to acquire the brand outright. Here, just-drinks looks at the Passoã brand and the mechanics of today's deal.

Passoa will eventually come under Lucas Bols full ownership

Passoa will eventually come under Lucas Bols' full ownership

What is Passoã?

  • The brand was created in 1986 following a trip to Brazil for Cointreau's master distiller. While there, he was introduced to the maracuja - passion fruit. The product maintains its Brazilian cues, as demonstrated by its label
  • Passoã is pink in colour and carries an abv of 17%
  • Consumable on its own, in cocktails or as part of a long drink, Passoã has "experienced recent successes" in the on-premise channel, according to Lucas Bols
  • Its largest market is Western Europe, particularly France, the Netherlands, Belgium and the UK. The region accounts for around 85% of Passoã's sales. Beyond Western Europe, the brand's other important markets are Japan, Puerto Rico and the US

The new Passoã joint-venture

  • Lucas Bols will inject around EUR5m (US$5.5m) of working capital into the JV
  • The company will "assume full operational control", including the day-to-day management of the entity, which will be based in France. Additional marketing and sales staff will be recruited and absorbed into the JV, while the "existing know-how and experience" will transfer across from Remy
  • Production will continue to be based at Remy's facility in Angers, France
  • Remy will relinquish all control of Passoã, with the brand's financials set to be consolidated into Lucas Bols' accounts
  • The brand is expected to generate annual sales of around EUR18m. In fiscal-2016, Lucas Bols' sales pre-Passoã were forecast to total EUR72.6m. The JV is estimated to bring in EUR2m to the bottom line, with Lucas Bols' combined net profits now expected to total EUR14m
  • The acquisition, should it proceed, will occur "in due time", the companies said

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