Sept 3 (Reuters) - Consumer products maker Fortune Brands Inc signed
a new international distribution agreement with Edrington Group, succeeding a
four-partner Maxxium joint venture on March 31, 2009.
The new alliance comes a week after Fortune Brands announced a payment of
$230 million from Pernod Ricard SA to exit its joint distribution
venture with Absolut vodka maker Vin & Sprit Group (V&S), which was recently
acquired by Pernod.
The new distribution alliance between Fortune's Beam Global spirits business
and Edrington, an original Maxxium partner, will help Fortune market in 24 key
countries outside the United States, the company said in a statement.
The alliance is expected to represent annual sales of more than $1.5
billion.
Fortune Brands expects to incur restructuring and related one-time charges
outside of Maxxium of about 10 cents a share in the next 6-12 months related to
the distribution alliance transition.
Fortune also said it will record a charge of 25 cents a share in the third
quarter from the write down of its investment in the Maxxium JV.
The forthcoming exit of V&S brands and French wine and spirits group Remy
Cointreau from the JV will be earnings neutral to Fortune Brands,
before gains and charges, Fortune said.
(Reporting by Sweta Singh in Bangalore)
((sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S.
+91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net))
(Reporting by Sweta Singh in Bangalore) Keywords: FORTUNEBRANDS/
tf.TFN-Europe_newsdesk@thomsonreuters.com
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