Beam Suntory to Assume Full Ownership of Maxxium Spain
Beam Suntory to Assume Full Ownership of Maxxium Spain
As of 2 August 2021, Beam Suntory will assume Edrington's stake in Maxxium Spain, and Edrington will assume Beam Suntory's stake in Edrington-Beam Suntory UK, via an equity swap
Maxxium Spain and Edrington-Beam Suntory UK have been jointly owned by Beam Suntory and Edrington since 2009, with both companies owning a 50% stake in each business
12 May 2021 - Beam Suntory, a world leader in premium spirits, has closed an agreement with Edrington, the international ultra-premium spirits company, to acquire 100% of Maxxium Spain through an equity swap. The agreement will be effective 2nd August 2021, subject to regulatory approval. With this transaction, Beam Suntory will assume full ownership of Maxxium Spain and Edrington will assume full ownership of Edrington-Beam Suntory UK. This will be the first time that Beam Suntory will have full ownership of its Route to Market in Spain.
This decision follows more than a decade of successful partnership between Beam Suntory and Edrington across several markets, including equal ownership of JV distribution businesses in the UK, Spain and Russia. Both companies believe that this is the right time to transition their distribution businesses in Spain and the UK from a JV structure to a fully owned structure. This will allow both businesses to reduce complexity, improve agility, make decisive investments and expand opportunities for employees as both businesses become part of larger international companies.
Maxxium Spain and Edrington-Beam Suntory UK will continue to distribute their current full portfolios of both Beam Suntory and Edrington brands. It is expected that Maxxium Spain’s corporate brand will transition to a new corporate brand in January 2022 to more closely align Beam Suntory, and details regarding those plans will be announced in due course.
For Beam Suntory, Spain is a strategic hub and the home of its International headquarters, with corporate offices in Madrid and Jerez. Spain is also a key growth market for its portfolio of premium global brands, including Jim Beam and Roku. Beam Suntory’s Segovia distillery also produces renowned Spanish brands, Larios, Whisky DYC, and Anís Castellana. Meanwhile, Maxxium Spain has established itself as a leading spirits distributor over its 20-year history and has built category leadership positions across its portfolio, which now includes four of Spain’s best-selling brands: Brugal, DYC, Larios and Centenario. Together, Beam Suntory and Maxxium Spain will employ more than 600 people across the country.
Edrington and Beam Suntory will maintain their strong partnership, including distribution agreements across several global markets, which will now include Spain and the UK. Both companies will also maintain equal stakes in their remaining JV distribution business, Maxxium Russia. Suntory Holdings’ 10% equity stake in Edrington is unaffected by this transaction.
Pryce Greenow, President International & Global Sales Excellence Officer, Beam Suntory commented: “Despite the challenges faced by our industry in 2020, Beam Suntory has a great deal of confidence in the fundamental strength of our business in Spain. We intend to invest in building our premium brands, including Jim Beam, Roku, Larios and DYC, as well as in our commercial capabilities to accelerate Maxxium Spain’s growth. We will be focused on key strategic priorities like eCommerce, daytime consumption and tourism, as well as working closely with our on-trade partners to support a swift and sustained recovery of Spain’s all-important hospitality industry.
“We have worked with our Maxxium Spain colleagues for many years as our JV partners, and we are proud to welcome them into our global business. Given Beam Suntory’s deep roots in Spain and our many years of collaboration, we believe that bringing both businesses together will prove a natural fit, and that both companies will benefit from fully joining forces.”
Mark Pockele, General Manager of Maxxium Spain, added: "We are proud to become part of Beam Suntory’s global business. Beam Suntory has always shown great commitment to and understanding of the Spanish market, and we believe that this simplified ownership structure will allow us to accelerate growth in our traditional areas of strength, as well as exploring new opportunities as we navigate the post-COVID recovery. We are delighted that Edrington will continue to invest in this market and be a part of our business, and we look forward to continuing to grow their portfolio in Spain.”
Huw Pennell, Edrington’s Regional Managing Director for Europe, said: “As our business sharpens its focus on the growing opportunities for ultra-premium spirits, we are pleased that this agreement will enable us to continue to work closely with the excellent Maxxium Spain team in Madrid to accelerate the growth of our portfolio.
“Spain is the number one international market for Brugal rum outside the Dominican Republic, and the cities of Madrid and Barcelona are key cities for The Macallan. We are excited about the opportunities for our portfolio under the management of the talented Maxxium Spain team.”
About Beam Suntory Inc.
As a world leader in premium spirits, Beam Suntory inspires human connections. Consumers from all corners of the globe call for the company's brands, including the iconic Jim Beam and Maker's Mark bourbon brands, Suntory whisky Kakubin and Courvoisier cognac, as well as world renowned premium brands including Knob Creek, Basil Hayden's and Legent bourbon; Yamazaki, Hakushu, Hibiki and Toki Japanese whisky; Teacher's, Laphroaig and Bowmore Scotch whisky; Canadian Club whisky; Hornitos and Sauza tequila; EFFEN, Haku and Pinnacle vodka; Sipsmith and Roku gin; and Midori liqueur.
Beam Suntory’s Spanish brands include DYC whisky, Larios gin and Anís Castellana. Its Segovia distillery is located in Palazuelos de Eresma and its bottling operations are located in Valverde del Majano. In addition to producing DYC Whisky, Larios Gin, and Anís Castellana, the plant also bottles Jim Beam and other Beam Suntory brands to supply Beam Suntory’s International region.
Beam Suntory was created in 2014 by combining the world leader in bourbon and the pioneer in Japanese whisky to form a new company with a deep heritage, passion for quality, innovative spirit and vision of Growing for Good. Headquartered in Chicago, Illinois, Beam Suntory is a subsidiary of Suntory Holdings Limited of Japan. For more information on Beam Suntory, its brands, and its commitment to social responsibility, please visit https://www.beamsuntory.com and https://www.drinksmart.com
About Edrington
Edrington’s vision is to give more by building exceptional ultra-premium spirit brands. Our strategy is to become the world’s best at crafting exceptional spirit brands that are loved by consumers. The Macallan is our central focus, supported by Highland Park and The Glenrothes in the fast-growing single malt category and Naked in the blended malt category. Our portfolio is completed with The Famous Grouse Blended Scotch Whisky and Brugal premium rum from the Dominican Republic. Edrington also has strategic partnerships with Tequila Partida and Wyoming Whiskey in the tequila and American whisky categories.
Edrington is headquartered in Scotland and employs over 3,500 people in its wholly owned and joint venture companies, with over 70% employed overseas. We own our route to market in 15 countries and distribute our brands to more than 100 countries around the world through joint ventures and third-party agreements.
Our principal shareholder is The Robertson Trust, which has donated £301 million to charitable causes in Scotland since 1961. Our business is underpinned by the Edrington values of giving, respect, integrity, and excellence.
About Maxxium Spain
Maxxium Spain is responsible for the sales, marketing and distribution of a range of premium spirit brands and has in its portfolio four of the ten best-selling brands in Spain: Larios, Brugal, DYC and Centenario. In addition to these, Maxxium Spain markets more than 20 other premium spirits brands, including internationally renowned brands such as The Macallan, Jim Beam, Courvoisier and the Japanese whiskeys Hibiki and Yamazaki.