Lucas Bols secures ‘strategic partnership’ for Nuvo liqueurBy Nicola Carruthers
Lucas Bols has entered into a ‘strategic partnership’ with New York-based London Group for sparkling liqueur Nuvo, giving the Dutch firm the option to buy the brand in full.
The partnership entails the global distribution rights as well as agreements to further develop French liqueur Nuvo. Lucas Bols will continue to work with London Group to further build and distribute the brand.
The company said that its initial focus will be on the US market, followed by other markets around the world.
Lucas Bols USA also plans to integrate and relaunch the Nuvo brand from 1 April 2018. The deal follows the Netherlands-based group’s joint venture with Rémy Cointreau for the Passoã liqueur brand last year.
The Dutch group said that its earnings per share in the short term will be neutral to slightly positive, following the initial higher A&P investments behind the brand.
Lucas Bols will be responsible for buying, sourcing and commercial activities, as well as defining the appropriate distribution channels for the brand.
London Group, founded by spirit entrepreneur Raphael Yakoby, will be responsible for strategic marketing, including social media and product development.
The transaction fits Lucas Bols’s “asset light business model”, as it seeks to strengthen the company’s existing distribution platform with limited additional investments required.
The agreement also includes a put-and-call option structure that will allow Lucas Bols to acquire the brand in full in the mid-term.
Pink sparkling liqueur brand Nuvo liqueur is made of vodka, sparkling wine and a blend of fruit nectar, and was created by Yakoby in 2007. Yakoby also founded blue liqueur brand Hypnotiq in 2001, a liqueur made from vodka, Cognac and juices, which he sold to Heaven Hill Distilleries for US$60 million.
Huub van Doorne, CEO Lucas Bols: “We are excited to add Nuvo to our global brands distribution network, starting off in the US. Nuvo is a characteristic super premium brand that has been seeking a larger infrastructure to expand its distributional footprint.
“We see ample opportunities for the brand in the US, followed by other selected markets around the world. We look forward to working closely together with Raphael Yakoby, who has a successful track record in building spirits brands. With Nuvo we can expand our retail experience in the US, which also benefits the roll-out of Passoã in that market. We see this partnership as an excellent example of how we can leverage our strong marketing and distribution platform, one of our main strategic themes.”
Nuvo, which is primarily consumed by women, is said to have the potential to show substantial growth from its current volume of around 10,000 cases.
Yakoby said: “I am excited about this partnership as Lucas Bols is a great company that understands and embraces the entrepreneurial spirit. I am convinced that together we can successfully develop the Nuvo brand in the coming years.”