Beam Suntory, the world’s third largest premium spirits company, today announced that it has acquired a 50% equity stake in ABV Brands Proprietary Ltd., an independent distributor of premium spirits in South Africa, from Cyprus-based FIX Wines & Spirits Ltd. The remaining 50% will continue to be held by ABV Brands’ co-founders and management team.
ABV Brands has been the appointed distributor in South Africa for Beam Suntory since its foundation in 2010, during which time ABV Brands has grown sales of Beam Suntory’s brands by more than 260%, driven in part by consistent double-digit growth of Jim Beam and Courvoisier. The transaction announced today 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. ABV Brands aims to be among the top five distributors in South Africa by 2020.
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Under the terms of the deal, ABV Brands will continue to focus on growing and distributing its entire current spirits portfolio in South Africa. ABV’s co-founders and Managing Directors, Ross Calow and Dan Hawkins, will also maintain their current roles.
Albert Baladi, President, International at Beam Suntory, says, “I am delighted to announce our strategic investment in ABV Brands in South Africa, which extends our successful partnership with ABV Brands. The African spirits market has phenomenal growth potential for Beam Suntory and our global whisky and cognac portfolio is ideally suited to capture the growth of premium spirits. This partnership gives us a beachhead, and we will continue to look for opportunities to become a key player in Sub-Saharan Africa by expanding our footprint, growing our brands and securing strong routes to market.”
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.”
Igor Boyadjian, of FIX Wines & Spirits, says, “As co-founders of ABV, we are extremely proud of the success ABV Brands has had in growing a phenomenal and exciting portfolio of brands from Beam Suntory, Edrington, Berry Bros. & Rudd and others over the last five years. FIX Wines & Spirits has played a pivotal role in fueling ABV Brands’ early success and providing full support to the executive team. We now feel it is time for ABV Brands to play in a different league, so we are delighted to pass the baton to Beam Suntory to define a new and even more ambitious vision for the business. We wish them every success in this new partnership.”
The transaction is subject to customary closing conditions.