Market research
Beam Global Spirits & Wine and The Edrington Group have launched their new sales and distribution alliance today (1 April), following Remy Cointreau's exit from the Maxxium joint venture.
The alliance between the two companies spans 24 international markets and generates combined sales of more than US$1.5bn, Beam Global and Edrington said.
The two worked together, as two of the four shareholders, in Maxxium Worldwide for ten years. The new agreement, announced last September, began today as Remy Cointreau leaves the venture. Vin & Sprit, the fourth member of Maxxium, departed the organisation last year after it was acquired by Pernod Ricard.
Beam Global and Edrington are each responsible for the strategy, marketing, innovation and new product development for their respective brands, with the 24-market agreement structured as follows:
- Beam Global and Edrington will have joint ownership of the Maxxium organisations in Spain, the UK, Russia, China, Hong Kong and travel retail.
- In 12 markets, Beam Global will distribute both the Beam Global and Edrington portfolios: Germany, Australia, New Zealand, Canada, Philippines, Singapore, Thailand, Laos, Vietnam, Malaysia, Indonesia and Cambodia.
- In six markets, Edrington will distribute both Edrington and Beam Global brands: Norway, Sweden, Denmark, Finland, Taiwan and South Korea.
"The agility afforded by this partnership brings Beam Global and Edrington closer to our consumers and enables us to respond more quickly to emerging market trends," said Donard Gaynor, senior vice president and managing director, international, for Beam Global. "This growth-focused Alliance improves the efficiency of our business in international markets while empowering our employees to become leading brand-building entrepreneurs."
Bill Farrar, group sales and marketing director at Edrington, added: "Our streamlined structure allows us to grow our market share in established and high-growth markets, as well as respond to regional tastes with a wide range of national brands. The competitive edge the Alliance offers is that it enables both companies to grow while becoming more targeted and focused regionally."
Gaynor and Farrar will co-chair the alliance shareholder board.
The venture accounts for 90% of Beam Global and Edrington's sales previously generated through Maxxium. Other markets will be handled by third-party distribution arrangements.
