Bacardi goes it alone in Germany

Bacardi goes it alone in Germany

Bacardi and Brown-Forman have agreed to end their distribution partnership in Germany.

From September, Bacardi will no longer distribute in Germany for the producer of Southern Comfort and Jack Daniel's, Bacardi announced today (1 February).

It said that a decision to end the distribution was "mutually agreed".

Bacardi CEO Séamus McBride said: "This decision supports Bacardi’s strategy of growing its family of premium brands in key regional and local markets."

Bacardi wants to focus solely on core brands, such as Bacardi, Martini, Grey Goose vodka and Bombay Sapphire gin, it said.

Brown-Forman said today that it will establish its own distribution subsidiary in Germany, to operate from 1 October 2010.

"We believe that establishing our own distribution company will help us accelerate the development of our brand portfolio in Germany over time," said Brown-Forman CEO Paul Varga.

The two companies will continue to cooperate on distribution in the UK and US, as well as several other markets across Asia and Europe.

A spokesperson for Bacardi added, however, that "both companies will continue to explore new arrangements where appropriate".