UK-based company premium drinks company Distil has terminated its joint venture (JV) agreement with British Honey Company (BHC).

The JV agreement has been terminated with immediate effect. BHC is a distiller and infused spirit brand owner also based in the country.

The agreement was signed in February this year before the outbreak of coronavirus (Covid-19) in the UK. It was signed with the intent to jointly create a shared new product.

Under the agreement, both companies agreed to contribute an initial cash sum of £30,000 each to jointly produce and distribute a new branded botanical spirits range and other products.

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Distil said: “As it was only formed in February this year, development work is at an early stage with the relatively little cost incurred. We have therefore agreed with BHC to cancel this contract with immediate effect and both companies will extract their funds to focus on our opportunities and priorities.

“The impact of Covid-19 has led to the closure of pubs, bars and restaurants and increased demand from the retail sector, both through stores and online. We are focusing our immediate efforts on working with our distributors and production partners to supply a changing demand landscape across trade channels.

“Our distributors are doing an excellent job of trying to rebalance stock between the pubs and retail.”

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The UK-based firm added that it will continue to create its own brands and liquids in anticipation of the wider market reopening at a later date.

Distil owns brand such as RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago’s Cream Liqueur and Diva Vodka.