Beam Suntory and premium spirits company Edrington have finalised a deal to swap equity stakes in their jointly owned distribution firms in the UK and Spain.

Beginning from 2 August 2021, Beam Suntory will take complete ownership of Maxxium Spain and Edrington will take over Edrington-Beam Suntory UK.

With a 50% stake each, the companies jointly owned the two distribution businesses since 2009.

Both companies believed that it is the right time to transition their distribution businesses from a joint venture (JV) structure to a fully owned structure and hope that move will help them improve agility, make decisive investments and reduce complexity.

Through this deal, Beam Suntory will have full ownership of its Route to Market in Spain for the first time.

Beam Suntory said that the deal will not impact the 10% equity stake in Edrington owned by its parent company Suntory Holdings.

Completion of the deal is subject to regulatory approval.

Maxxium Spain and Edrington-Beam Suntory UK will continue to distribute their existing portfolios of both Beam Suntory and Edrington brands.

Upon completion of the deal, Edrington-Beam Suntory UK will become Edrington UK Distribution, known as Edrington UK.

In addition to Spain and the UK, the companies have an equally owned JV distribution business in Russia.

With international headquarters and corporate offices in Madrid and Jerez, Spain has been an important location for Beam Suntory.

The region also serves as a key growth market for its brands including Jim Beam and Roku.

Its distillery also produces Spanish brands, Larios, Whisky DYC and Anís Castellana.

Beam Suntory International president and global sales excellence officer Pryce Greenow said: “Despite the challenges faced by our industry in 2020, Beam Suntory has a great deal of confidence in the fundamental strength of our business in Spain.

“We intend to invest in building our premium brands, including Jim Beam, Roku, Larios and DYC, as well as in our commercial capabilities to accelerate Maxxium Spain’s growth.”