|
Beam Sells Dalmore Distributing Rights |
|
Tuesday, 12 February 2008 |
Beam Global Spirits & Wine, Inc. (Deerfield, Ill.), a unit of Fortune Brands, announced last month that it has sold the US distribution rights for The Dalmore Scotch Whisky to the brand's owner, UB Group. The sale price was $58 million.
"This is a win-win transaction for Beam Global and for UB Group," says Tom Flocco, president and chief executive officer of Beam Global. "The US distribution rights for The Dalmore offered limited upside for us due to supply agreements that would have constrained our long-term supply. At the same time, UB Group was eager to consolidate worldwide distribution of The Dalmore, having purchased the brand earlier this year.
"In the past two years, we have significantly strengthened our global position in the most attractive segments of the Scotch whisky category with the acquisition of Laphroaig and launch of Ardmore in the fast-growing single-malt segment, and the addition of Teacher's, which is demonstrating strong growth in the premium blended segment. With our interest in maximizing focus on global growth of these tremendous Scotch brands, the US rights to The Dalmore became more valuable to UB Group than to us," Flocco added.
The Dalmore generated annual sales for Beam Global of approximately $6 million. The transaction also included the brand’s inventory currently owned by Beam Global, as well as a transition services agreement under which Beam Global's Future Brands distribution joint venture will continue to handle the distribution of The Dalmore.
|
