Fortune Brands' Jim Beam Brands Unit & Maker of ABSOLUT Vodka Join Forces.Business Editors LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--March 20, 2001 Fortune Brands, Inc. (NYSE NYSE See: New York Stock Exchange :FO) -- Create Powerhouse U.S. Distribution Company Uniting No. 1 Imported Vodka & World's No. 1 Bourbon -- Joint Venture to Increase Partners' Scale & Market Clout in Consolidating Industry, Reduce Distribution Costs & Add to Earnings -- Vin & Sprit Makes Equity Investment in Fortune's Jim Beam Brands -- Partnership Extends Internationally as Vin & Sprit Joins Maxxium The Jim Beam Jim Beam is a brand of bourbon whiskey, distilled in Clermont, Kentucky. This brand of whiskey has been distilled since 1795. The Jim Beam brand is owned by Beam Global Spirits & Wine, which is in turn owned by holding company Fortune Brands. Brands Worldwide unit of Fortune Brands, Inc. (NYSE:FO) and Vin & Sprit of Sweden, the maker of ABSOLUT vodka vodka (vŏd`kə), traditional spirituous drink of Russia, the Baltic states, and Poland; it is now consumed internationally. The best vodka is distilled from rye and barley malt, but the cheaper corn and potatoes are commonly employed. , today announced a definitive agreement creating a joint venture for the distribution of the companies' spirits and wine brands in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In moves that further link the partners' interests, Vin & Sprit will make an equity investment in Jim Beam Brands Worldwide and also will join the Maxxium international distribution joint venture. The new U.S. distribution company, named Future Brands LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , will sell a powerhouse portfolio featuring the world's No. 1 bourbon Bourbon (b  rbôN`), European royal family, originally of France; a cadet branch of the Capetian dynasty. (Jim Beam), the No. 1 imported vodka in America (ABSOLUT) and the No. 1
brand of cordials in the U.S. (DeKuyper). By joining forces, Jim Beam
Brands and Vin & Sprit will reap the competitive and cost benefits
of greater scale in a consolidating industry while retaining the
ownership and marketing responsibilities for their respective brands.Second Highest Case Volume in U.S. With combined U.S. sales volume of approximately 20 million cases in 2000, the joint distribution portfolio will drive the second highest case volume in America. Jim Beam Brands generated worldwide sales of more than $1.2 billion in 2000, with more than half of its 28 million case volume in the United States. Volume for the flagship Jim Beam bourbon brand exceeded 5 million cases worldwide and 3 million cases in the U.S. Global sales for ABSOLUT - the third largest premium spirits brand in the world - exceeded 7 million cases, including 4.5 million cases in the U.S. ABSOLUT accounts for more than half of imported vodka sales in America, its primary market, and is one of the fastest growing premium spirits brands. In addition to ABSOLUT, Jim Beam and DeKuyper, the combined portfolio includes Knob Creek Knob Creek can refer to:
Noun 1. akvavit - Scandinavian liquor usually flavored with caraway seeds aquavit caraway seed - aromatic seeds of the caraway plant; used widely as seasoning . The partnership also positions the joint venture for further growth through the future distribution of additional brands. Partnership on 3 Levels: US Distribution, Equity Investment & Global Alliance The foundation of Future Brands LLC, a jointly-owned subsidiary of the two partners, will be the existing distribution operations of Jim Beam Brands. Jim Beam Brands will contribute its non-cash U.S. distribution assets, including its powerful sales force, to establish majority ownership of the joint venture. Vin & Sprit will pay $270 million for access to the Beam U.S. distribution network and to acquire a 49% stake in the distribution operations. To further strengthen the partnership, Vin & Sprit will purchase a 10% equity interest in Jim Beam Brands Worldwide for $375 million. Vin & Sprit will hold an option to increase its equity stake by up to an additional 9.9% over the next few years. In a third development, the companies also announced the linkage of their distribution outside the U.S. through Maxxium, the joint venture established in 1999 by Jim Beam Brands, Remy Cointreau and Highland Distillers Highland Distillers was founded in 1887 by the Robertson family. In 1970 Highland purchased Matthew Gloag & Son Ltd., producers of the Famous Grouse blended whisky and acquired The Macallan single malt Scotch producers in 1996. Highland also produced the Highland Park brand whisky. . Vin & Sprit will invest 107 million Euros to become an equal partner in Maxxium. With the addition of Vin & Sprit's brands, Maxxium's annual case volume is expected to grow from 16 million to 18 million cases. Impact of Win-Win Agreement for Fortune Brands "This breakthrough agreement is an absolutely positive development for our spirits and wine business, for the shareholders of Fortune Brands and for our partner Vin & Sprit," said Fortune Brands Chairman & Chief Executive Officer Norm Wesley. "In a consolidating industry, this creative partnership is win-win, instantly increasing both companies' clout while substantially reducing costs. We both achieve the benefit of greater scale with an efficient and nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. distribution operation that will allow us to maximize focus on developing our respective brands." "ABSOLUT and Jim Beam are a perfect match, bringing together the strength of our distribution network, the broad consumer appeal of our brands and the unrivaled power and prestige of the ABSOLUT brand," said Jim Beam Brands President & Chief Executive Officer Richard B. Reese. "Vin & Sprit's equity investment in Jim Beam Brands will even further align our common interests, enabling both partners to benefit from our vast collective expertise in brand building, marketing and sales execution." "This is a dramatic strategic development that demonstrates our commitment to our highest-return businesses and delivers on our commitment to create additional value for our shareholders," Wesley added. "We expect that the economics of this strategic partnership will be solidly accretive to Fortune Brands' earnings in 2001, with more substantial earnings impact in the years ahead." "These agreements establish a powerful worldwide distribution organization for V&S and our leading international brand ABSOLUT," said V&S Chief Executive Officer Peter Lagerblad. "We have secured a larger part of the value chain and V&S is also now in a position to have greater influence over the distribution of its products. Our objective is to use these new distribution arrangements as a platform to become one of the leading international spirits companies." The partners also announced that Michael P. Donohoe, Jim Beam Brands' Senior Vice President for Sales & Marketing, will be Chief Executive Officer of Future Brands LLC. Jim Beam Brands will handle distribution of ABSOLUT in the transition period between the termination of Vin & Sprit's current distribution arrangements and the establishment of the joint venture. The joint venture will be headquartered in Deerfield, IL, the home of Jim Beam Brands. The agreement announced today is subject to certain conditions and is expected to close soon after the necessary regulatory approvals. About Fortune Brands Fortune Brands, Inc. is a consumer products company with annual sales exceeding $5.8 billion. Its operating companies operating company A business that engages in transactions with outsiders. have premier brands and leading market positions in home and hardware products, spirits and wine, golf equipment and office products. Home and hardware brands include Moen faucets, Aristokraft and Schrock cabinets, Master locks and Waterloo tool storage sold by units of MasterBrand Industries, Inc. Major spirits and wine brands sold by units of Jim Beam Brands Worldwide, Inc. include Jim Beam and Knob Creek bourbons, DeKuyper cordials, Whyte & Mackay Scotch and Geyser Peak and Canyon Road wines. Acushnet Company's golf brands include Titleist, Cobra and FootJoy. Office brands include Day-Timer, Swingline, Kensington and Wilson Jones Charles Wilson Jones (born April 29, 1914 in Wrexham, Wales, died January 9, 1986 in Birmingham) was a Welsh professional footballer who played as an centre-forward for Wrexham, Birmingham and Nottingham Forest in the Football League, and for Wales at international level. sold by units of ACCO ACCO American College of Chiropractic Orthopedists ACCO Association of County Commissioners of Oklahoma ACCo American Cyanamid Company ACCO Adenoid Cystic Carcinoma Organization ACCO American Clip Company ACCO Assistant Central Control Officer World Corporation. Fortune Brands, headquartered in Lincolnshire, Illinois Lincolnshire is an affluent village in Lake County, Illinois, United States. The population was 6,108 at the 2000 census. It is the headquarters of Hewitt Associates, Quill Corporation, and Takeda Pharmaceuticals North America, as well as Newman/Haas Racing, an auto racing team in , is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors FO and is included in the S&P 500 Index. To receive company news releases by e-mail, please visit www.fortunebrands.com. About Vin & Sprit Vin & Sprit is the global spirits and wine company that owns and distributes a portfolio of established spirits and wine brands, including ABSOLUT vodka. V&S's year 2000 sales exceeded $570 million. Founded in 1917, the company is based in Stockholm, Sweden and has 1,400 employees. ABSOLUT, the world's third largest premium spirits brand, is now sold in 125 markets with worldwide sales of more than 7 million cases, 4.5 million of which are in the United States. Since beginning exports of Absolut in 1979, V&S has grown the brand into the No. 1 imported vodka in America. The award-winning advertising and marketing campaign of ABSOLUT continues to break new ground in communicating the brand's core values of clarity, simplicity and perfection. V&S's strategic focus is to expand its global competitive position by enhancing its strong base in the Nordic countries, building on the unique market position of ABSOLUT, marketing other international premium brands and seeking strong local distribution in specific European markets. For more information, please visit www.vinsprit.se or www.absolut.com. About Maxxium Maxxium is a premium spirits and wine brand sales and distribution joint venture established in 1999 by the Jim Beam Brands Worldwide unit of Fortune Brands, Remy Cointreau, the French spirits producer, and Highland Distillers Ltd., the Scotch Whisky Scotch whisky n. A whiskey distilled in Scotland from malted barley. Noun 1. Scotch whisky - whiskey distilled in Scotland; especially whiskey made from malted barley in a pot still producer. Maxxium provides distribution for its partners in most of the major markets for premium imported spirits outside the United States. With operations in more than 60 countries, Maxxium's year 2000 sales were approximately 16 million cases, or 1.5 billion Euros. For more information, please visit www.maxxium.com. This press release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future results, which are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Readers are cautioned that these forward-looking statements speak only as of the date hereof. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in general economic conditions, foreign exchange rate fluctuations, changes in interest rates, competitive product and pricing pressures, trade consolidations, the impact of excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. increases with respect to distilled spirits, regulatory developments, the uncertainties of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , changes in golf equipment regulatory standards, the impact of weather, particularly on the home products and golf brand groups, expenses and disruptions related to shifts in manufacturing to different locations and sources, challenges in the integration of acquisitions and joint ventures, risks associated with the Company's implementation of strategic options for ACCO World Corporation, as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. |
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