Campari loses US distribution deal with Suntory
Gruppo Campari is to cease distributing the portfolio of Japanese drinks group Suntory in the US following its acquisition of Beam Inc.
Suntory has terminated its distribution deal with Gruppo CampariAnnouncing its financial results for the year so-far, the Italian drinks group said that Suntory had terminated its distribution agreement effective from 1 July 2014.
Suntory acquired US firm Beam, producer of Maker’s Mark Bourbon and Courvoisier Cognac, for US$16 billion at the start of this year, creating new company Beam Suntory Inc.
The new company will be headquartered in Beam’s main office in Deerfield Illinois, creating a stronger distribution presence for Suntory’s portfolio in the US.
As such, Campari will no longer handle Suntory’s Scotch whisky arm Morrison Bowmore Distillers, which encompasses the Bowmore, Glen Garicoh and Auchentoshan brands, as well its Japanese whiskies Yamazaki, Hakushu and Hibiki, and Midori liqueur.
Net sales of Suntory brands accounted for approximately 1% of Gruppo Campari net sales in 2013.
The announcement of the terminated distribution deal comes as Campari reveals its profits in Q1 had plummeted nearly 50% to € 20.7 million.
