Breaking news: Beam Global loses The DalmoreDecember 21st, 2007
Beam Global just announced that they sold the U.S. distribution rights to The Dalmore to the Distillery’s relatively new owner, the UB Group, for $58 Million. Here’s what Beam Global’s President Tom Flocco has to say about it in the press release I just received:
“This is a win-win transaction for Beam Global and for UB Group,” said Tom Flocco, president and chief executive officer of Beam Global. “The U.S. distribution rights for The Dalmore offered limited upside for us due to supply agreements that would have constrained our long-term supply. At the same time, UB Group was eager to consolidate worldwide distribution of The Dalmore, having purchased the brand earlier this year.
“In the past two years, we have significantly strengthened our global position in the most attractive segments of the Scotch whisky category with the acquisition of Laphroaig and launch of Ardmore in the fast-growing single-malt segment, and the addition of Teacher’s, which is demonstrating strong growth in the premium blended segment. With our interest in maximizing focus on global growth of these tremendous Scotch brands, the U.S. rights to The Dalmore became more valuable to UB Group than to us,” Flocco added.
The deal includes Beam’s current inventory of the brand in the U.S. as well as a transitional agreement.
I suspected something was up back in August when Beam Global surprisingly pulled The Dalmore out of participating in all three WhiskyFests for 2008, which came as a shock to us, given they always participated and hosted seminars at each event.
UB’s other brands, Old Fettercairn and Jura, are being imported by an arm of Sazerac, Gemini Spirits and Wines. I was wondering if Gemini might be picking them up. But as soon as I heard the news, I reached out to Mark Brown, President of Buffalo Trace (another arm of Sazerac). He is in the loop on all this stuff. His response:
Nope, it does not mean Dalmore is coming to us, although, obviously, we would be delighted to have the brand and modestly believe we could do great things with it.
I’ll ask around and see what I can find out. When I do, I’ll post it right up.