New player pops cork in liquor distribution

By DITA DE BONI

An internationally backed independent player is about to muscle in on New Zealand's splintering liquor distribution industry.

Paris-based Maxxium BV - a joint venture between Jim Beam Brands, Remy Cointreau and Highland Distillers - will start scouting this week for staff to establish a wholly owned subsidiary here.

From March, Maxxium NZ will take over the distribution of notable spirits brands such as Jim Beam, Coruba, Cointreau, Galliano and The Famous Grouse Scotch whisky.

This portfolio was formerly covered by Allied Liquor Merchants and Glengarry Hancocks.

Maxxium NZ will also inherit the distribution of Oyster Bay Marlborough and Delegat's Hawkes Bay wines from Allied Liquor Merchants.

The entire portfolio has an estimated turnover of $80 million.

Maxxium Australia managing director Andrew Le Lievre, who is currently in Auckland to help establish the new business, said the company would announce a managing director for the stand-alone New Zealand operation on Friday morning.

It would also look to recruit between 40 and 45 workers to staff its Auckland headquarters and four regional offices.

"With the changes in the New Zealand spirits marketplace [Maxxium] can come in and focus sales and marketing efforts on our brands without the distraction of other businesses," he told the Business Herald.

"We will provide strong competition [to NZ Wines and Spirits] and focus on sales strategies and brand positioning rather than on product attributes."

Mr Le Lievre said New Zealand had a polarised liquor distribution market, with the businesses of the major breweries at one end and at the other "a massive tail of bars and restaurants ordering small quantities."

He said Maxxium would distribute indirectly through wholesalers as well as having "direct capability for key accounts."

Maxxium was not concerned about a declining spirit-drinking population in New Zealand, he said.

"New Zealand is the number four export market for Jim Beam [per capita] in the world, and for Coruba rum it's number one," he said.

"Many of our brands continue to show strong growth, despite the declining market."

Maxxium BV - soon to be based in Amsterdam - distributes liquor in 41 countries, excluding New Zealand.

It has a projected turnover of $3.5 billion.