TORONTO, Sept. 30, 2013 /CNW/ - Corby Distilleries Limited ("Corby" or the "Company") (TSX: CDL.A,TSX: CDL.B) announced today that Corby has entered into an agreement with The Absolut Company Aktiebolag ("The Absolut Company"), a Pernod Ricard S.A. ("Pernod Ricard") affiliate and owner of the Absolut vodka brand, extending Corby's exclusive right to represent ABSOLUT vodka in Canada from September 30, 2013 to September 29, 2021, consistent with the term of Canadian representation for the other Pernod Ricard brands in Corby's portfolio. Under the agreement, Corby paid $10.3 million to The Absolut Company for the additional eight years of the new term. The Absolut Company and Corby entered into the agreement to satisfy the parties' obligations set out in the November 9, 2011 agreement between Corby and Pernod Ricard. Concurrently, Chivas Holdings (IP) Ltd., the current Plymouth gin brand owner and another Pernod Ricard affiliate, will acknowledge the continuation of Corby's continued representation of the Plymouth gin brand consistent with the term of Canadian representation for the other Pernod Ricard brands in Corby's portfolio. Pernod Ricard indirectly owns in excess of 50% of the issued and outstanding Voting Class A Common Shares of Corby and is considered to be Corby's ultimate parent. Since the arrangements with The Absolut Company, Pernod Ricard and Chivas constitute related party transactions between Corby and Pernod Ricard affiliates, they were approved by the Independent Committee of the Corby Board of Directors following an extensive review with external financial and legal advice.
George McCarthy, Corby's Chairman of the Board of Directors, stated that "We couldn't be more pleased to enter into the agreement extending the Canadian representation term for the iconic ABSOLUT vodka brand. Ensuring that one of the world's most recognized and innovative brands remains in the Corby portfolio for the long-term allows us to continue pursuing our strategy of focusing upon premium brands to deliver value to shareholders."
ABSOLUT is the number one premium vodka brand worldwide with around 11 million nine litre cases sold annually, with an image built around values of creativity, innovation and cultural leadership. ABSOLUT vodka complements Corby's strategy, while further enhancing the Company's premium brands portfolio. With ABSOLUT vodka in the Corby portfolio, Corby is the number two player in the vodka category in Canada with over 21% volume share - combining ABSOLUT with other key Corby vodka brands, such as Polar Ice vodka.
Corby Distilleries Limited is a leading Canadian marketer of spirits and imported wines. Corby's portfolio of owned-brands includes some of the most renowned brands in Canada, including Wiser's® Canadian whisky, Lamb's® rum, Polar Ice® vodka and McGuinness® liqueurs. Through its affiliation with Pernod Ricard S.A., Corby also represents leading international brands such as ABSOLUT® vodka, Chivas Regal®, The Glenlivet® and Ballantine's® Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu® rum, Kahlúa® liqueur, Mumm® champagne, and Jacob's Creek®, Wyndham Estate®, Stoneleigh®, Graffigna® and Campo Viejo® wines.
The existing Voting Class A Common Shares and Non-voting Class B Common Shares of the Company are traded on the Toronto Stock Exchange under the symbols CDL.A and CDL.B, respectively.
This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby's operations. Forward-looking statements typically are preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and, as such, the Company's results could differ materially from those anticipated in these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.
SOURCE: Corby Distilleries Limited
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