Brown-Forman and Pabst Brewing have ended a contract they had covering flavoured malt beverages in the US.
Under the tie up, in place since 2021, Pabst to supplied, sold and distributed Jack Daniel’s Country Cocktails, Jack Daniel’s Bolder, Jack Daniel’s Hard Tea and El Jimador Spiked Bebidas.
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Brown-Forman, which is bringing the management of the RTD portfolio in-house, said the decision to end the deal was “mutual”.
A Brown-Forman spokesperson added: “We are currently developing our future production plans and will share more information at a later date, including details regarding any production partners.”
The companies are now working on a transition plan to ensure continuity of supply for consumers, retailers and distributors.
Robinson Brown IV, the managing director for Brown-Forman’s operations in the US and Canada, said: “Moving forward, bringing these brands in-house allows us to take greater control of our ready-to-drink strategy during a period of increased consumer demand. By centralising our efforts, we are better positioned to accelerate the portfolio’s momentum and maximise its future impact.”
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By GlobalDataPabst CEO Greig DeBow, who joined the US drinks group last year, said: “This transition will allow us to reallocate resources toward execution and innovation within our core portfolio of iconic brands.”
In December, Pabst, home to brands including Pabst Blue Ribbon beer, confirmed it had made changes to its sales organisation, although the group refused to be drawn on reports of job cuts.
DeBow said the time the moves would “enhance focus, speed, and accountability across the business” and lead to “greater efficiency and improved service for our customers”.
Brown-Forman is set to report its fiscal third-quarter results tomorrow. In the six months to 31 October, Brown-Forman’s net sales from RTDs increased 5% boosted by higher sales of its New Mix range in Mexico.
However, the company said its Jack Daniel’s RTD/RTP portfolio declined 4% both a reported and organic basis. Brown-Forman said the fall was largely due to the reduced availability of American-made beverage alcohol on retail shelves in most Canadian provinces amid the trade tension between the two countries.
Overall, the group’s six-month net sales totalled $2bn, down 4% as reported and flat organically. Reported operating income for the period fell 9% to $565m and by 4% organically.
