Press releases
03/09/2008 : Agreement between Maxxium shareholders for an early termination of the distribution contract for Vin & Sprit brands with effect from October 1st 2008.
Integration of Vin & Sprit portfolio, including ABSOLUT, into Pernod Ricard’s distribution network on this same date.
Press release - Paris, 3 September 2008 -
Pernod Ricard is pleased to announce that the four shareholders of Maxxium (Vin & Sprit / Pernod Ricard, Remy Cointreau, The Edrington Group and Beam Global Spirits & Wine) have entered into an agreement for the early termination of distribution by Maxxium of the Vin & Sprit brands, and in particular ABSOLUT VODKA. This termination will take effect on 1st October 2008.
Maxxium currently distributes the Vin & Sprit portfolio in most major markets outside of the US. The Maxxium contracts had previously provided for an exit by Vin & Sprit from distribution after a period of two years following its acquisition by Pernod Ricard together with the payment of a fee.
The Maxxium shareholders have now agreed an accelerated exit of Vin & Sprit from Maxxium. In order to compensate Maxxium for this early termination, Pernod Ricard will pay Maxxium a fee of €59 million on 1st October 2008. The 25% equity stake held by Vin & Sprit in Maxxium will be redeemed by Maxxium for €60.4 million on 30th March 2009.
This transaction allows Pernod Ricard to take over the distribution of ABSOLUT in most markets outside the US immediately and with no associated costs. This will enable Pernod Ricard to implement cost synergies sooner than originally expected and thereby leverage the portfolio synergies in these markets through an accelerated integration of ABSOLUT within Pernod Ricard.
Commenting on this agreement, Patrick Ricard stated :
«Following the agreement to take over the distribution of ABSOLUT in the US on October 1st 2008, the exit from the Maxxium distribution agreement at the same time is excellent news for Pernod Ricard. Only two months after closing the acquisition of Vin & Sprit, the ABSOLUT brand will be distributed in almost every market around the world by our powerful distribution network, accelerating the strong growth of the brand.»
Patrick Ricard also stated:
«Through its own dynamism and the overall strengthening of our portfolio of premium and luxury brands, ABSOLUT further improves our growth profile.»
About Pernod Ricard
Created by the merger between Pernod and Ricard (1975), the Group has undergone sustained development, based on both organic growth and acquisitions. The purchase of part of Seagram (2001), the acquisitions of Allied Domecq (2005) and recently of Vin & Sprit (2008) have made Pernod Ricard the world’s co-leader in wines and spirits with sales of € 6,589 billion in 2007/08.
Pernod Ricard holds one of the most prestigious brand portfolios in the sector: ABSOLUT Premium Vodka, Ricard pastis, Ballantine’s, Chivas Regal and The Glenlivet Scotches whiskies, Jameson’s Irish Whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek and Montana wines.
The Group favours a decentralised organisation, with comprise of 7 Brand Owners and 70 Distribution Companies established in each key market, and employs a workforce of more than 19,300.
In addition, Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption.
Pernod Ricard is listed on the NYSE Euronext exchange (Mnemo RI ; ISIN code FR0000120693) and is a member of the CAC 40 index.
Pernod Ricard Contacts:
Francisco de la VEGA / Communication VP Tel: +33 (0)1 41 00 40 96
Denis FIEVET/ Financial Communication - Investor Relations VP Tel: +33 (0)1 41 00 41 71
Florence TARON / Press Relations Manager Tel: +33 (0)1 41 00 40 88
