Brown-Forman to open own distribution unit in Germany

Brown-Forman has said that it will establish its own distribution company in Germany, effective Octo

The company said that Germany will join the US, Australia, Poland, Mexico, China, South Korea, the Czech Republic, and Taiwan as countries where it has fully-owned sales and marketing operations.

The company has ended the relationship with its current distributor, Bacardi, in Germany.

Paul Varga, CEO of Brown-Forman, said: "We thank Bacardi for their valued contributions on our behalf in Germany over the years.

"Our route-to-market decisions illustrate Brown-Forman's desire to continuously improve our in-market knowledge, influence, and brand-building capabilities across the globe. We believe that establishing our own distribution company will help us accelerate the development of our brand portfolio in Germany over time."

According to Mr Varga, the company will continue to do business with Bacardi in a number of important markets around the world, most notably in two of its largest markets, the US and the UK.

Brown-Forman is a producer and marketer of alcohol brands, including Jack Daniel's, Southern Comfort, Finlandia, Canadian Mist, Fetzer, Korbel, Gentleman Jack, el Jimador, Tequila Herradura, Sonoma-Cutrer, Chambord, Tuaca, Woodford Reserve, and Bonterra. The company is negotiating with Bacardi and other distributors in additional European markets with contracts expiring in 2010.