Bacardi to end US distribution agreements

Legal documents suggest that Bacardi is planning to end a large number of its distribution contracts in the US.

Bacardi is planning to end a large number of its distribution agreements in the US, documents have revealed

Last week, the Bermuda-based drinks groups submitted applications to terminate its distribution agreements with the newly formed Breakthru Beverage Group, Alliance Spirits & Wine and Young’s Market Company, among others.

The applications claim that Bacardi has selected a new distributor, details of which have not yet been formally announced.

According to Law360, Bacardi sought declaratory relief from a range of regional and national distribution firms through documents submitted to the United States District Court Southern District of Florida.

Other named distribution companies include First State Distributing Group, Republic National Distributing Company and K&L Distributors.

The Spirits Business has approached Bacardi to comment.

Bacardi, maker of Grey Goose vodka and Bombay Sapphire gin, has unveiled a series of radical company changes over the past 12 months under the stewardship of new CEO Mike Dolan.

Last year, the firm completely restructured its global marketing and advertising division, appointing BBDO Worldwide and OMD Worldwide – both part of Omnicom Group – to handle its entire publicity, media and digital operations.

Dolan, who was appointed permanent CEO of Bacardi at the start of 2015, told The Spirits Business that while a number of key executives had resigned from their positions due to dramatic at the company, he is seeking to make Bacardi a “powerhouse marketing organisation”.