Constellation Brands’ European unit has said it is “disappointed” that a marketing agency has threatened it with legal action in the UK.
The row, over Constellation’s recently-divested Gaymer Cider Company, blew up late last week when Ocean Events accused Constellation of “not honouring a performance related agreement to pay commissions” and “sacking” the agency “weeks before the announcement of the sale”.
Constellation Europe engaged Ocean Events, a UK-based music sponsorship and experiential marketing agency, in 2008 to “create a music festival marketing experience for Gaymers”, Ocean Events said late last week.
In March of that year, Gaymer launched a GBP4m (US$7.9m) festival-focused promotional push in the UK.
Last November, however, Constellation announced the sale of Gaymer to Ireland-based C&C Group for GBP45m.
“Instead of rewarding Oceans Events for taking Gaymers Cider from festival novice to brand leader in only two years, Constellation sacked Oceans Events just weeks before the announcement of the sale,” a spokesperson for Ocean Events said last week.
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