Wine and spirit merchant Berry Bros and Rudd (BB&R) said yesterday it had agreed to sell its Cutty Sark blended whisky brand to Edrington Group.
The deal also sees BB&R acquiring The Glenrothes Speyside single malt brand from Edrington.
Meanwhile, the Glasgow-based maker of The Famous Grouse and The Macallan, has signed long-term supply agreements with BB&R and will retain ownership of Glenrothes Distillery at Rothes.
The value of the transaction, due to be concluded by April, was not disclosed.
An Edrington spokesman said the deal could see a small number of BB&R workers transferring to the new Cutty Sark owner, while job cuts – if any – would be kept to a minimum.
He added: “Employment opportunities are the subject of ongoing discussions.” Edrington will take over all distribution contracts in force for Cutty Sark at the time of completion.
Sales-and-distribution joint-venture Maxxium will continue to distribute The Glenrothes in key international markets.
Maxxium is also expected to provide a distribution option for other brands within BB&R’s “super-premium” spirit portfolio.
London-based BB&R, said its sale of Cutty Sark and acquisition of The Glenrothes – “one of the world’s fastest growing single malts” – were in line with a long-term vision. Managing director Hugh Sturges said: “We are convinced that future growth will come from us focusing even more on our strengths.
“That means targeting our sales and marketing efforts on brands and sectors where we can compete most effectively and develop market positions that will drive real value long-term.”
Edrington chief executive Ian Curle said the deal would bolster his group’s position in the whisky industry via an unrivalled and well-established portfolio of leading blended and single malt brands.
He added: “It improves our distribution in key territories and strengthens our position as an independent premium brand company.”
Edrington has supplied blended whisky for Cutty Sark for more than 70 years and is currently responsible for all aspects of producing the brand.