Distell bags its first global acquisition
The deal gives Distell, the world’s fourth biggest brandy producer, the Bisquit trademark, the inventories of Bisquit’s finished cognac, and stocks of cognac distillate currently in maturation.
It is Distell’s first totally owned international acquisition and takes the company further into the mainstream international spirits market.
Though the top end of luxury items is under pressure, Jan Scannell, Distell’s managing director, believes the trend towards “premiumisation” of luxury alcohol will continue in spite of the global slowdown.
“It’s a good time to buy while it’s available in the luxury market,” he said.
Though Pernod had several brands playing in the same top- end market, Scannell said it would be “a top priority” in Distell’s world. “It will be the cherry on the top along with Amarula”.
Cognacs accounted for 8.6percent of brandy volumes sold worldwide in 2007 and command a higher price than any other type of brandy.
Growth of Cognacs has outpaced other spirits this decade.
Bisquit has an almost 200-year history and is steeped in family tradition.
It has a strong presence in parts of both Western and Eastern Europe with a support base in China, as well as in international travel retail.
Scannell said Distell will focus expansion into Asia, North America, Eastern Europe and Africa.
The sale of the brand is part of Pernod Ricard’s non-strategic asset disposal plan that was spelt out after the Vin & Spirit acquisition.
Distell’s flagship Amarula Cream Liqueur is South Africa’s most widely distributed alcoholic brand, sold in more than 100 countries.
Two years ago, Distell set up a joint venture with Burn Steward Distillers, a Scotch whisky producer in which the two parties are equal partners and own and market in sub-Saharan Africa three whiskies.
The deal augments Distell’s spirits stable and gives access to Bisquit’s existing customer base in Europe and Asia for other Distell offerings across the group’s spirits, wine and ready- to-drink portfolio.
To avoid any disruption of supply, Bisquit’s current distribution arrangements will remain in place for a transition period. Distell is in the process of establishing its own production facilities in Cognac in France.