BDI 19/10 - October 2019

DISTILLING

News: distilling

Scotch Whisky Association and Virginia Distillery Company reach resolution on whisky labelling case

The Virginia Distillery Company and the Scotch Whisky Association are pleased to have reached an amicable resolution of the recent lawsuit between the parties related to product labelling. While they had always endeavoured to ensure that their

Gareth Moore, Virginia Distillery Company’s CEO, explained: “We stand behind the quality of the Virginia-Highland Whisky prod- ucts and the recognition they

the rms used Bacardi’s sales team and logistic operation under the Bacardi Brown- Forman Brands (BBFB) banner. However, each company was responsible for the marketing of its own brands. Brown-Forman and Bacardi have both “grown their respective positions” in the UK since the deal began and “agree that the time is now right” for each rm to manage their businesses and brands in the market. Bermuda-based Bacardi, which owns brands such as Bombay Sapphire gin, Grey Goose vodka, and Patrón Tequila, will “focus on delivering the full potential” of its portfolio in the UK. US spirits group Brown-Forman plans to create its own distribution company in the UK to “further the growth” of its Jack Daniel’s family of brands and “drive development” of its super-premium portfolio of brands includ- ing Woodford Reserve Bourbon, Herradura and El Jimador Tequilas, Finlandia vodka and Slane Irish whiskey. Bombay Sapphire embroiled in grains of paradise lawsuit Bacardi is facing a class action lawsuit in Florida over Bombay Sapphire’s grains of paradise botanical, which cannot be used to adulterate alcohol in the state. The case has been launched by plaintiff Uri Marrache “on behalf of all persons in the state of Florida who have purchased Bombay Sapphire Gin”. It also names Jacksonville-headquartered Winn-Dixie Supermarkets, which stocks Bombay Lindesay Low, Deputy Director of Legal Affairs at the SWA, said: “We welcome Virginia Distillery Company’s willingness to work with us to protect the integrity of Scotch whisky. “With the company’s commitment to remove all references to ‘Highland’ and other Scottish indicators from their products over a phased period, we are pleased to cease the pending legal proceedings. “We appreciate the prompt and positive attitude shown by the Virginia Distillery team in bringing the issue to resolution, removing the need for action in the courts to protect the intellectual property of Scotch whisky”.

above brands. Consumers are looking for new and authentic experiences and working with Corporación Cuba Ron provides a great opportunity to expand our portfolio in seg- ments of the rum category whose growth is being driven by premiumisation globally and in Europe.’ Juan Gonzalez Escalona, President of Corporación Cuba Ron SA, said: ‘We are proud to announce the creation of this joint venture, which will bring the award-winning Santiago de Cuba TM to consumers around the world. More than just a rum, Santiago de Cuba TM was born in the city where the history and tradition of Cuban light rum orig- inated. It is an expression of its people and part of our Cuban tradition and culture. We are looking forward to working with our part- ners to build the success of this premium rum outside Cuba.’ [1] The brand will not be distributed in the United States of America. distribution partnership Spirits giants Bacardi and Brown-Forman have agreed to end their distribution alliance in the UK after 17 years. The UK distribution deal between Bacardi and Brown-Forman began in 2002 Both rms have made the decision to end the agreement, which will expire at the end of April 2020. Bacardi and Brown- Forman are “working closely to ensure a seamless transition”. As part of the long-running partnership, Bacardi and Brown- Forman to end UK have received the past three-plus years, but are happy to work with the Scotch Whisky Association to ensure that there is no chance of confu- sion about our products. “From the start, Virginia Distillery Company has been transparent about the nature of our products, which have been recognised for their quality, and we are committed to growing and championing the American Single Malt Whisky category.”

New joint venture formed to distribute Santiago de Cuba rum Diageo have announced the creation of a joint venture, Ron Santiago S.A., between the European Diageo subsidiary and Corporación Cuba Ron S.A., a leader in the production of premium Cuban rums. The joint venture will have exclusive global distribution rights to Santiago de Cuba TM , a premium Cuban heritage rum brand. [1] Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation trends driving growth. Over the past four years, premium and above rum retail sales value has grown 12%, whilst overall category growth was 3%. Cuban rum brands account for 9% of the retail sales value of this growing segment globally. The premium plus rum segment in Europe, the key market for development of the Santiago de Cuba TM brand, is growing at 16%, ahead of luxury spirits, at 9%. Santiago de Cuba TM will join Diageo Europe’s portfolio of Reserve luxury spirits, building on the trend towards premiumisa- tion and the cocktail culture which are driving growth in key cities and resorts across Europe. With four core variants (Carta Blanca, Anejo, 11-year old and 12-year old) Santiago de Cuba TM is the second largest premium Cuban rum, renowned for its high quality and provenance in the traditional rum distilling region of Cuba. Dayalan Nayager, Managing Director, Diageo GB, Ireland and France, commented: ‘The joint venture with Corporación Cuba Ron is in keeping with our strategy to invest behind growth opportunities in premium and Virginia-Highland Whisky series was labelled in accordance with Federal Regulations, the Virginia Distillery Company will cease using “Highland” after it sells remaining stock. The distillery will, however, continue to label all products using ‘whisky’ which is allowed under US law.

16 ● BREWER AND DISTILLER INTERNATIONAL I october 2019

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