Brown-Forman and Bacardi to renew distribution contracts

However wines and spirits manufacturer seeks new contract for Russian market.

Brown-Forman and Bacardi have agreed to renew contracts for Bacardi to distribute Brown-Forman brands in Belgium, Denmark, Austria, Switzerland, Luxembourg, Portugal, and Andorra, and for Brown-Forman to continue to distribute Bacardi brands in the Czech Republic. All agreements are effective from May 2010.

Brown Forman said that it is in ongoing negotiations with Coca Cola Hellenic Bottling Company (CCH Russia) to distribute its full portfolio of brands in Russia when its current contract with Bacardi expires at the end of September this year. Coca Cola Hellenic has already started distributing its brands in Croatia, Hungary, Serbia, and the Ukraine. Although Bacardi has been Brown-Forman's distributor in the Netherlands for the last eight years, The Brand New Day Drinks Company will distribute Brown Forman's brands in the Netherlands from May.

"Brown Forman has enjoyed a unique relationship with Bacardi in a number of markets across the globe over many years," said Paul Varga, chief executive officer of Brown-Forman. "Our existing arrangements in the US and the UK and the renewed agreements in these European markets underscore our commitment to continue to seek mutually beneficial ways to collaborate where it makes strategic sense for both companies. We highly value our partnership with Bacardi and look forward to continuing this successful business relationship in the future," he added.