Fortune Brands and Vin & Sprit Close $645 Million Deal Creating Jim Beam-ABSOLUT Partnership.Business Editors LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--May 31, 2001 Fortune Brands, Inc. -- Joint U.S. Distribution of World's no. 1 Bourbon and no. 1 Imported Vodka in America Begins Tomorrow -- Vin & Sprit Completes Purchase of 10% Equity Interest in Fortune's Jim Beam Brands Unit -- Maxxium Agreement for International Distribution of ABSOLUT and Other V&S Products Also Closes 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 NYSE See: New York Stock Exchange : FO) and Vin & Sprit of Sweden, the maker of ABSOLUT, today formally closed their deal creating a broad strategic partnership. Joint distribution of the partners' spirits and wine brands - led by Jim Beam and ABSOLUT - will begin 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. tomorrow. The partners also announced the simultaneous closing Simultaneous Closing is a real estate seller financing technique, whereby the private mortgage note created by the seller is simultaneously sold to a note buyer on closing. of the agreement to link their distribution in key markets outside the U.S. through the Maxxium international joint venture. The agreements were originally announced on March 20th. By joining forces in a consolidating industry, Jim Beam Brands and V&S will increase their clout in the marketplace and substantially reduce their distribution costs distribution costs distribute npl → Vertriebskosten pl while maintaining the ownership and marketing responsibilities for their respective brands. The partners' leading brands, Jim Beam and ABSOLUT, are the world's no. 1 bourbon and the no. 1 imported vodka in America. At closing, The Absolut Spirits Company (Vin & Sprit's U.S. subsidiary) paid $270 million for a 49% stake in Future Brands LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a new jointly-owned U.S. distribution company based on the powerful distribution operations of Jim Beam Brands. To further link the partners' interests, V&S invested $375 million for a 10% equity interest in Jim Beam Brands Worldwide, with an option to increase its equity stake by up to an additional 9.9% over the next few years. V&S has also invested 107 million Euros to become the fourth equal partner in Maxxium, the international 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. . Joint Venture to be no. 2 in U.S. Case Volume The Future Brands LLC joint venture will be responsible for distribution of the second highest volume spirits and wine portfolio in the United States. Jim Beam Brands and Vin & Sprit combined sold 20 million cases in the U.S. in 2000. ABSOLUT, the world's third largest premium spirits brand, accounts for more than half of imported vodka sales in America. In addition to the powerhouse Jim Beam and ABSOLUT brands, the joint distribution portfolio also features DeKuyper (no. 1 cordials brand in the U.S.), 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 . Increased Market Clout at Lower Cost "Joint distribution of Jim Beam and ABSOLUT delivers immediate competitive and cost benefits to both partners in a consolidating industry," said Fortune Brands Chairman & Chief Executive Officer Norm Wesley. "With this Dream Team portfolio of premium and super-premium brands, we'll increase our clout in the largest market for both companies and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our complementary channel strengths. This partnership will also reduce Jim Beam Brands' distribution costs substantially, and we'll both achieve the advantages of greater scale while retaining control of our respective brands. This powerful and cost-effective distribution alliance, combined with V&S's equity investment in Jim Beam Brands, will create substantial value for the shareholders of Fortune Brands." Fortune Brands expects that the spirits and wine partnership will increase earnings per share by 6 to 8 cents in 2001 and at least 20 to 25 cents in 2002 and beyond. "The joint portfolio showcasing ABSOLUT, Jim Beam and DeKuyper will enhance these powerful brands and create further growth opportunities for our fast-growing super-premium spirits and wines, particularly in restaurants and bars, where ABSOLUT's presence is incredibly strong," said Jim Beam Brands President & Chief Executive Officer Richard B. Reese. "Maxxium distribution has already boosted international growth for our core brands, and with ABSOLUT joining the Maxxium portfolio, we'll further enhance our global positioning." "The deal establishes a powerful worldwide distribution organization for V&S and our leading international brand ABSOLUT," commented V&S' President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 the new distribution arrangement as a platform to become one of the leading international spirits companies." 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 fast-growing ABSOLUT exceeded 7 million cases, including 4.5 million cases in the U.S. The Future Brands LLC joint venture is headquartered in Deerfield, IL, the home of Jim Beam Brands Worldwide. About Fortune Brands Fortune Brands, Inc. is a consumer products company with annual sales exceeding $5.8 billion. Its operating companies 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. V&S's year 2000 sales exceeded $570 million. Founded in 1917, the company is based in Stockholm, Sweden and has 1,800 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 whichare 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 building on the unique market position of ABSOLUT, marketing other international premium brands, seeking strong local distribution in specific European markets and enhancing its strong base in the Nordic countries. 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 future results, which are forward-looking statements 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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