Allied Domecq seals new US partnership

Allied Domecq has sealed a deal to create a new range of malt beverages.

Allied Domecq has sealed a deal to create a new range of malt beverages.

It has forged a partnership with Milwaukee-based Miller Brewing Company.

The first two malt beverages created under the deal will be based on Allied Domecq's Stolichnaya vodka and Sauza tequila.

The new drinks will reach US consumers this spring through more than 500,000 retail outlets serviced by Miller's nationwide distributor network.

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As the market develops, both parties will explore further opportunities using Allied Domecq's portfolio of spirits brands. It is planned to roll out the drinks worldwide.

Allied Domecq says the economic slowdown in the US affected the spirits market in the first four months of its current financial year.

The company says the slowdown and aggressive competition will hold back top-line performance in the first-half to the end of February.

However, the group says recent steps to address the challenges in the US are expected to enhance its competitive position.

Allied Domecq says it enjoyed a good Christmas in the UK and it stands by estimates made last October for trading profit to be reduced by £20 million after cutting stocks in the US supply chain.

Chief executive Mr Philip Bowman says the venture with Miller marks the first step of the group's accelerated brand development and innovation programme.

PA