The Edrington Group has announced a major expansion of its international distribution network, taking control of operations that span three continents, including what the drinks company described as the world’s “largest and most dynamic spirits markets”.
During the coming year Edrington will establish new sales, marketing and distribution companies in the US, South East Asia and the Middle East. Collectively these markets currently account for 26% of Edrington’s total sales.
This expanded distribution network significantly strengthens Edrington’s route to market and brings the company’s premium spirits closer to consumers in these key geographies, the company said.
The move will allow for increased investment in Edrington brands and demonstrates the company’s confidence in the continued growth potential of its premium spirit brands, Edrington added.
Edrington USA will assume the distribution of Edrington brands in the US, the world’s largest premium spirits market. Demand for premium malt whisky is growing by +16% per annum as the market adds a million new spirits consumers each year.
 |
“Today’s announcement marks a step change in Edrington’s business“ |
Ian Curle Chief Executive Edrington |
Edrington USA will expand the company’s reach to major cities across the US, opening offices in Chicago, LA, Dallas, Miami and expanding its office in New York. The company sees significant opportunities for the brands, particularly The Macallan and Brugal Extra Dry rum.
As reported yesterday, Edrington FIX is a new joint venture with FIX Wines and Spirits that will distribute spirits to growing markets in the Middle East, the Gulf and North Africa (MENA). Edrington FIX will focus on key cities and the travel retail market.
Edrington Singapore Pte Ltd will manage the brands in markets across South East Asia, including Singapore, Malaysia, Vietnam, Indonesia, Thailand, the Philippines, Cambodia and Laos. The region has played an increasingly important role in the global success of Edrington, the company said, and The Macallan is the leading premium single malt whisky in South East Asia.
Edrington has formally given notice to withdraw from its sales and distribution agreement with Beam Global Asia Pte Ltd within South East Asia. The agreement, which covers the ASEAN territory, will end on 30 September 2013.
In a separate joint statement, both companies said they are “committed to continuing the strong relationship, expertise and investment behind the brands during the transition period”.
“We’d like to thank Beam Asia for their contribution towards the outstanding results our brands have achieved under their stewardship. This amicable conclusion to our relationship in South East Asia will allow both companies to focus on and develop their separate businesses,” said Edrington Singapore Pte Ltd Managing Director Geoff Kirk.
Beam Global Asia Pte Ltd Managing Director Jonathan Chow added: “We’re proud of the strong results we’ve generated for Edrington’s brands in South East Asia, and of the good relationship we’ve forged.”
The Edrington distribution restructure is the latest stage in the group’s strategy of growing its business in both new and expanding markets, it said. The move follows the creation last year of Edrington Africa in South Africa, which targets key markets in sub-Saharan Africa.
“Today’s announcement marks a step change in Edrington’s business,” said Edrington Chief Executive Ian Curle.
“Worldwide demand for premium and super-premium spirits continues to grow and by expanding our distribution capabilities so significantly we are seizing the opportunity to increase investment in our brands and reach even more consumers who are showing a growing appreciation of premium spirits,” Curle concluded.
