Lion mixes its drinks

By Geoff Senescall

Lion Nathan has spent around $20 million in buying out the other 50 per cent of national liquor distributor New Zealand Wines and Spirits.

In doing so, it has secured the rights to distribute extra premium brands, including Gordon's Gin, Johnnie Walker Scotch whisky, Stolichnaya Vodka and Stoli Lemon Ruski.

These bands had been distributed in New Zealand by Lion Nathan's local competitor DB Group. A spokesman for Lion declined to estimate what the value was to the company of gaining the extra brands.

He said gaining new labels was one of the conditions it had placed on buying out the other two shareholders, United Distillers & Vintners (UDV) and Allied Domecq, both of Britain.

The distribution rights had been up in the air following last year's merger of Guinness and Grand Metropolitan, the two big British drinks groups, to create Diageo.

The merger brought together Guinness's United Distillers and GrandMet's International Distillers and Vintners to create a new spirits divisions, UDV. Meanwhile Allied Domecq has been streamlining its own international operations.

The change in ownership will be effective from July 1. However, the Lion spokesman said it would be several months before it would takeover the distribution of the extra brands.

While Lion does not break out its profits from the liquor distributor but NZWS is thought to have earnings before interest and tax of $6 million a year.