Jim Beam and Coke?

Coca-Cola Amatil (CCA) and Beam Suntory announced a new 10-year agreement to strengthen their existing relationship, beginning next month.

Commencing July 1, 2015 the new agreement extends the partnership in Australia by a further two years, to 2025.

Under the current agreement (signed in March 2011), CCA is responsible for the sales and distribution of the original Beam Inc. spirits portfolio in Australia, including the country’s top-selling Jim Beam Bourbon and Canadian Club, as well as the manufacture, sales and distribution of its ready-to-drink (RTD) spirits portfolio.

The new agreement fully integrates the expanded Beam Suntory spirits range into CCA’s existing market-leading spirits and RTD portfolio, adding Suntory brands such as Midori and Japanese whiskies Yamazaki, Hakushu and Hibiki.

Said CCA’s Managing Director of Alcohol and Coffee Shane Richardson, “The agreement signifies a very exciting step in the long-term partnership between CCA and Beam Suntory. 

“As well as further strengthening CCA’s range of market-leading spirits and RTDs, the new agreement deepens the relationship between our two companies.

“Over the past year we have worked hard together to grow the Beam portfolio in a challenging market, and this is testament to the quality of our relationship. This new partnership represents a very exciting portfolio expansion, which gives us an even greater range to offer our customers across the country.”

Said Beam Suntory Oceania Managing Director Peter Gunning, “We are now taking this opportunity to amplify the value of this unique partnership by extending the breadth and depth of the portfolio distributed by CCA.  This new agreement will underscore our position in the marketplace as Australia's whisky powerhouse bringing together the very best of Beam Suntory in Australia.”

The partnership also delivers an integrated sales and marketing team, with a core focus on brand development, including up-weighted resource to support the extended portfolio.

In Australia, the spirits and RTD market is worth $5.5 billion in retail turnover and the integration of the extended portfolio will take CCA/Beam Suntory’s combined market share to over 20 per cent, strengthening its position as the second biggest spirits business in the Australian market.