Corks pop as Dutch distributor revs up

By Dita de Boni

Independent liquor distributor Maxxium New Zealand is gearing up to "hit the ground running" from March 31.

That is when the start-up company inherits a substantial portion of the soon-to-be-dismantled Allied Liquor's portfolio, and will begin distributing 800,000 cases of liquor a year.

DB Breweries decided to wind down the operations of Allied last year after losing the division's Diageo business - including international brands Johnnie Walker and Gordon's Gin - to Lion Nathan's NZ Wines & Spirits.

About the same time, Maxxium retrieved its brands from Allied and Kentucky-based Brown-Forman removed its brands - including Jack Daniels, Southern Comfort and Pepe Lopez tequila - from Wines & Spirits.

Maxxium New Zealand's managing director, Iain Abercrombie, said that in line with the move towards international control of own-brands, Dutch parent company Maxxium BV had spent "several million" dollars to set up this country's first independent liquor sales, marketing and distribution business.

Paris-based Maxxium BV - a joint venture between Jim Beam, Highland Distillers and Remy Cointreau - had made New Zealand the first start-up division of the company's 42 operations.

Maxxium NZ has acquired distribution and marketing rights for a host of brands, including Jim Beam, Coruba, Cointreau and Oyster Bay Marlborough and Delegat's Hawkes Bay wines.

The company is now in the process of filling key positions and hopes to employ up to 45 people in the key centres of Auckland, Waikato, Bay of Plenty, Wellington and Christchurch.

Mr Abercrombie, a former All Black reserve and Lion Nathan marketing manager, said the eyes of Maxxium's 41 international divisions were all on New Zealand.

"The challenge of this role is that it is a unique opportunity to be involved in a start-up business - an independent against entrenched players," he said.

"The hospitality industry is a fun and exciting one and I can bring a lot of experience and training to the position."

While the company owes the bulk of its turnover - about $100 million - to the well-known spirit labels, it is hoping to boost the wine component of its portfolio from around 30 per cent at present to 50 per cent.

"We're talking to a number of major wine companies offshore," said Mr Abercrombie.

"One possibility is adding an Australian red to our portfolio."

Maxxium is also looking for growth from its Ready-To-Drink (RTD) spirit and mixer combinations, which make up the bulk of the spirit-based drinks retail category.

While the volume of spirits to the domestic market dropped in the year to last September, spirit-based drinks grew 10.9 per cent.

Maxxium's spirit portfolio as a whole will be promoted with on-premise promotions, which Mr Abercrombie said were very expensive but crucial.

He was confident both the spirits and wine businesses could grow substantially, while saying that DB's Allied Liquor Merchants had done a "fantastic job" of marketing the brands.

It is thought DB's decision not to fight to retain Allied's portfolio was based on the prediction that all large international liquor companies would take control of the marketing and distribution of their own brands.

With Diageo not yet opting to control their brands, Ord Minnett broker Paul Turnbull said breweries still profited short-term from including spirits in their portfolios.

"But we'll see more of this [fragmentation] in the long term."