Increased competition and merger activity has forced Australian distiller Tarac to close its spirit marketing business with immediate effect to concentrate on selling its own spirit brands and stock.

The privately owned Barossa based company will continue to produce Beenleigh Rum, Barossa Brandy, Kirov Vodka and Pegasus Ouzo if a buyer wanted to distribute those brands said Cathy Main national marketing manager.

Increased competition with other distributors and merger activity within the wine industry had forced the issue but the final nail in the coffin was a failed distribution with Simeon Wines, Ms Main added.

The distribution deal collapsed when, as reported by just-drinks, Simeon teamed up with the New South Wales based McGuigan Wines. Tarac is to focus on its two other divisions, a bottling plant with a 2m case annual capacity and a technologies division servicing the wine industry.