US spirits manufacturer Beam Suntory has announced that it has bought a 50% equity stake in South African alcoholic drinks distributor ABV Brands.
ABV Brands has been the appointed distributor in South Africa for Beam Suntory (previously Beam Global) since its foundation in 2010, during which time ABV Brands has grown sales of Beam Suntory’s brands by more than 260%, Beam Suntory said in a statement. The transaction announced represents a strategic extension of this partnership and will unlock growth potential by allowing for further investment in sales and marketing capabilities to expand distribution and reach more consumers, the company added.
Beam Suntory said that ABV Brands would also focus on growing and distributing its entire current spirits portfolio in South Africa, in order to meet its aim of being among the top five distributors in South Africa by 2020.
Ross Calow, managing director of ABV Brands, commented: “ABV Brands is at the forefront of marketing and distribution of some of the world’s best-loved premium spirit brands, and this transaction will allow us to take Beam Suntory’s exceptional premium brand portfolio to new customers. This is a fantastic opportunity to combine ABV’s local expertise and agility with Beam Suntory’s global scale and portfolio of premium brands”.
The transaction is subject to customary closing conditions.
Source: Beam Suntory