Beam Suntory and Edrington have agreed to end their joint venture distribution businesses in the UK and Spain, and will shift to fully-owned structures following an equity swap.
The agreement comes after more than a decade of partnership between the companies, when they each took a 50% stake in both Maxxium Spain and Edrington-Beam Suntory UK in 2009.
As part of the deal, Beam Suntory and Edrington have agreed to an equity swap of stake. Under the terms of the agreement, Beam Suntory will assume full ownership of Maxxium Spain, while Edrington will assume full ownership in Edrington-Beam Suntory UK.
The move will reportedly allow both businesses to reduce complexity, improve agility, make decisive investments and expand opportunities for employees.
The deal will mark the fist time that Beam Suntory will have full ownership of its route-to-market in Spain – a key growth market for its brands such as Jim Beam and Roku.
Upon completion, Maxxium Spain and Edrington-Beam Suntory UK will continue to distribute their current full portfolios of both Beam Suntory and Edrington brands. However, it is expected that Maxxium Spain will transition to a new corporate brand in January 2022 to more closely align Beam Suntory.
Mark Pockele, general manager of Maxxium Spain, added: “We are proud to become part of Beam Suntory’s global business. Beam Suntory has always shown great commitment to and understanding of the Spanish market, and we believe that this simplified ownership structure will allow us to accelerate growth in our traditional areas of strength, as well as exploring new opportunities as we navigate the post-Covid recovery.”
The companies will also maintain their strong partnership including distribution agreements across several global markets, which will now include Spain and the UK. They will also retain equal stakes in their remaining joint venture Maxxium Russia.
Pryce Greenow, president international & global sales excellence officer of Beam Suntory, added: “Despite the challenges faced by our industry in 2020, Beam Suntory has a great deal of confidence in the fundamental strength of our business in Spain. We intend to invest in building our premium brands, including Jim Beam, Roku, Larios and DYC, as well as in our commercial capabilities to accelerate Maxxium Spain’s growth.”
The agreement will be effective 2 August 2021, subject to regulatory approval.
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