EUROPE: Bacardi, Brown-Forman split in Russia, Netherlands
Brown-Forman and Bacardi renew their deal in several countries
Brown-Forman and Bacardi will go their separate ways in Russia and the Netherlands, but will continue working together in several Western European countries.
Brown-Forman said today (31 March) that Greece-based Coca-Cola Hellenic Bottling Co will replace Bacardi as its distributor in Russia.
The Jack Daniel's whiskey owner will also replace Bacardi with Brand New Day Drinks Company in the Netherlands.
The moves are part of Brown-Forman's global review of its distribution deals in key markets.
Bacardi will continue to distribute Brown-Forman's brands, also including Southern Comfort and Finlandia vodka, in Belgium, Denmark, Austria, Switzerland, Luxembourg, Portugal, and Andorra.
At the same time, Brown-Forman has agreed to continue distributing Bacardi brands in Czech Republic. Both companies will also continue working together in the UK and US.
Commenting on the changes, Bacardi said: "Bacardi will cease distributing the Brown-Forman portfolio in the Netherlands at the end of April and stop distributing in Russia at the end of September, where Bacardi wants to focus on its own core portfolio."
Group CEO Seamus McBride said: "We will continue to work together to look for opportunities that suit both our needs around the world.”
Brown-Forman CEO Paul Varga said: "Our existing arrangements in the US and the UK and the renewed agreements in these European markets underscore our commitment to continue to seek mutually beneficial ways to collaborate where it makes strategic sense for both companies."
In Russia, Bacardi has distributed for Brown-Forman for five years. However, Brown-Forman has been in negotiations for some time with Coca-Cola Hellenic, which already distributes its brands in Croatia, Hungary, Serbia, and Ukraine.
Brown-Forman has lined up a television advertising push in the US for the lime-flavoured RTD variant of its Southern Comfort brand....
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