Beam Suntory has expanded its distribution agreement with Southern Glazer’s Wine & Spirits, the largest distributor of wine and spirits in North America.
The deal will see Southern Glazer’s represent Beam Suntory’s complete portfolio of brands – including Jim Beam and Basil Hayden’s – across 43 markets, expanding the latter’s national alignment in the US.
This development results in an additional nine markets in the US to the companies’ current 34 market distribution relationship.
Taking effect as of 1 April 2020, the move will simplify Beam Suntory’s routes to market and strengthen its customer relations.
In 2017, Beam Suntory signed a long-term distribution agreement with Southern Glazer’s Wine & Spirits, extending their existing partnership to 2030.
“Southern Glazer’s has been a significant partner in the growth of our business for 33 years,” said Greg Hughes, president of Beam Suntory North America.
Hughes added: “Our move to consolidate our business with Southern Glazer’s is part of a larger strategic imperative to simplify our routes to market, get closer to customers and consumers, and accelerate the premiumisation of our portfolio.”
Wayne Chaplin, CEO of Southern Glazer’s, said: “We greatly appreciate that Beam Suntory has entrusted us with the responsibility to work with them on a national level.
“Utilising our nationwide network and resources will significantly increase efficiencies for Beam Suntory and allow us to use economies of scale to achieve our joint business priorities. We look forward to many more years of success together.”
Last July, Beam Suntory invested around $60m to build a new bourbon distillery in Clermont, Kentucky, in order to re-establish the James B. Beam Distilling.
© FoodBev Media Ltd 2020
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