Distil has named Fortitude Drinks as its next UK distributor, with the new arrangement due to start next month.
The transition concludes the spirits maker’s current UK distribution partnership with Global Brands, which was announced last year.
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In a stock exchange filing today (13 July), Distil said the arrangement with Global Brands will conclude “amicably”, with both companies agreeing to “remain open” for future collaborations.
The new distributor, Fortitude Drinks operates under the Kliro Capital-owned Fortitude Spirits Group, an umbrella that also includes Fortitude Spirits and ICB Drinks.
ICB Drinks, which has manufacturing, bottling and canning facilities in Middlesbrough, already bottles some of Distil’s brands.
Distil said the “new relationship” with Fortitude is expected to lead to production, packaging, logistics and warehousing cost savings.
The company also expects to benefit from ICB Drinks’ recently launched £10m ($13.4m) canning line to expedite new product development, including RTDs.
The RedLeg Spiced Rum maker also pointed to Fortitude’s “particular strength” in the UK off-trade—an important channel for Distil—supported by own-label production contracts and a portfolio of “premium brands”.
Distil executive chairman Don Goulding said: “We are pleased to have the opportunity to work more closely with the team at Fortitude Spirits Group. Alongside its team we hope to make positive impacts on not just volumes in the UK trade, but also across other areas of the business, including production and logistics, and new product development.
“We thank the Global Brands team for its commitment and support throughout the time we have worked together. We have nothing but respect for the business and its team and we wish them every success for the future.”
The two companies are also exploring closer cooperation in export markets, citing “significant untapped” international opportunity for Distil’s Blavod, RedLeg and Blackwoods Gin and Vodka brands.
Fortitude Spirits Group chairman Warren Scott said: “The Distil brands are complementary to our existing portfolio, and we look forward to seeing where we can develop the brand portfolio in both the near and long term both in the UK and Internationally.”
