The new distribution agreement between Bacardi-Martini Limited and Brown-Forman Beverages UK began late last week, the companies have announced. The two companies will operate the arrangement under the new trading name of Bacardi Brown-Forman Brands.

"Bacardi-Martini Limited will benefit under the new agreement by sharing distribution, storage, transportation and logistical expenses of its own brands with Brown-Forman in the UK.  The cost sharing arrangement will enable both Bacardi-Martini Limited and Brown-Forman to invest more time and money into building their complementary brand portfolios. Both Bacardi-Martini Limited and Brown-Forman will retain control over their respective brands," a statement said.

The brands incorporated in the agreement for Bacardi-Martini Limited include Bacardi Rum, Bacardi Breezers, Bombay Gin, Martini vermouth, Drambuie liqueur and Glenmorangie whisky. Brown-Forman brands include Jack Daniel's Tennessee whiskey, Southern Comfort liqueur, Finlandia vodka and Woodford Reserve.    

Stella David, managing director, Bacardi-Martini Limited said: "Both Bacardi-Martini Limited and Brown-Forman are strongly committed to the long-term development of our respective brands. By forming our agreement under Bacardi Brown-Forman Brands we will seek to maximise the opportunities of the two companies to grow our businesses in the spirits market. Both Bacardi-Martini Limited and Brown-Forman are long established, family owned businesses which place great emphasis on their independence.  Under the new agreement Bacardi-Martini Limited will be able to continue building its brands, but will also benefit from the complementary elements of the Brown-Forman business."

Andrew Wilby, managing director, Brown-Forman Beverages UK, Ltd. added: "Brown-Forman and Bacardi-Martini Limited have very similar cultural values and complement each other not only in terms of commitment to brands but also in terms of the people who work for us.  Having a greater independence to market our products in the UK and control our pricing will allow us to concentrate on the development of stronger relationships with the trade.  Bacardi Brown-Forman Brands has an extremely strong sales force which will allow us to reach a greater number of our customers and build our business with them."