Coca-Cola Amatil (CCA) and Beam Suntory are set to snuggle closer in the wake of Suntory's acquisition of Beam.
The companies have signed a new 10-year agreement that extends their alliance in Australia by a further two years to 2025, and extends their sales and distribution partnership across more products.
At the time of the acquisition in January 2014, CCA said it would not be adversely impacted in light of the provisions of the long-term agreement between CCA and Beam which runs until December 2023.
Under that agreement, CCA was responsible for the sales and distribution of the original Beam spirits portfolio in Australia, including Jim Beam Bourbon and Canadian Club, as well as the manufacture, sales and distribution of its ready-to-drink (RTD) spirits portfolio.
The new agreement will fully integrate Suntory brands such as Midori and Japanese whiskies Yamazaki, Hakushu and Hibiki.
“As well as further strengthening CCA’s range of market-leading spirits and RTDs, the new agreement deepens the relationship between our two companies,” CCA’s managing director of Alcohol and Coffee Shane Richardson said.
“Over the past year we have worked hard together to grow the Beam portfolio in a challenging market, and this is testament to the quality of our relationship.”
Beam Suntory Oceania managing director Peter Gunning said the partnership would underscore Beam Suntory's "position in the marketplace as Australia's whisky powerhouse bringing together the very best of Beam Suntory in Australia".
Between them, CCA and Beam Suntory account for 20 per cent of the $5.5 billion spirits and RTD market.
