Allied Domecq, Cutty Sark Part Ways.

OLD GREENWICH, Conn.--(BUSINESS WIRE)--March 2, 1999--Berry Bros. & Rudd and Allied Domecq Spirits, USA, jointly announce a mutual decision to discontinue effective March 31, 1999, the two companies' agreement calling for Allied Domecq Spirits to distribute Cutty Sark Scots Whisky and The Glenrothes Single Speyside Malt Scotch Whisky in the United States.

Allied Domecq has managed domestic sales and marketing for Cutty Sark and The Glenrothes for more than a decade. Berry Bros. & Rudd is the brand owner and an independent, family-controlled wine and spirits merchant based in London.

"Our two companies have worked very well together over the last decade," said Bob Shea, Executive Vice President, Alliance Operations & Special Markets for Allied Domecq Spirits. "As we move forward, we must tighten our priorities. As a result, it's our intent to focus more on our own Scotch holdings in this country, including Ballantine's and our three single malts, Laphroaig, The Glendronach and Scapa."

According to Paul Bermudez, Vice President-Sales, North America for Berry Bros. & Rudd, "We respect and understand Allied Domecq's position; however, as Cutty Sark is one of the leading Scotch Whisky brands in the United States, we believe that it should be a Core Brand to our importer. Given Allied Domecq Spirits' direction and expectations, we mutually agreed it was in the best interest of both companies to go our separate ways."

Berry Bros. & Rudd has not disclosed who is bidding to distribute Cutty Sark in the United States. No financial terms were disclosed. Cutty Sark is the No. 6 scotch in the U.S. with reported depletions of 320,000 cases in 1997.

Allied Domecq Spirits, USA, is the domestic sales, marketing and distribution company for premium spirits brands from UK-based Allied Domecq Spirits & Wine, the No. 2 spirits group worldwide in terms of volume sales. Included among its major brands are: Kahlua, America's leading imported liqueur; Sauza tequila, the world's fastest growing spirits brand; Courvoisier, America's No. 2 selling cognac; and Maker's Mark, the original hand-crafted bourbon.

Allied Domecq Spirits & Wine is part of Allied Domecq PLC, the $7.33 billion international spirits and retailing group that also includes Baskin-Robbins, Dunkin' Donuts and Togos, as well as pubs, restaurants and spirits and wine retailers in the United Kingdom. For more information, visit the company's website on the Internet at www.allieddomecqplc.com.

For more information, contact Allied Domecq's Ross Fleckenstein at 203-323-8166, ext. 227, or Berry Bros. & Rudd's Paul Bermudez at 305-441-9111.