International wine, spirit and cider producer Distell is to cease its relationships with its UK distributors, taking sales and marketing of its brands in-house.
The company is exiting its long-standing distribution deals with SHS, Cellar Trends and Brand Phoenix from 9 January in order to distribute its own brands, including Savanna cider, Amarula cream liqueur and its Scotch and South African wine portfolios itself.
The decision comes as the company says it has identified the UK as a ‘key region’ for growth and has significantly invested in its infrastructure over the past six months in order to adapt to the restructure.
Joseph Walsh, commercial director at Distell UK & Ireland said: ‘This has been an extremely detailed and considered process and it reflects our confidence in the UK market and we look forward to strengthening our relationships in the UK trade as we look to drive value for the trade and consumers in the market.
‘We have worked closely with all of our distribution agencies to implement a smooth and well executed transition.’
Distell’s European head office is set to move to new offices in London’s Richmond from 10 October. The company has also expanded its UK commercial and market service teams to facilitate the changes.
Walsh added: ‘Each partner has helped grow our UK market share over a number of years and has shared our passion for our brands. We have enjoyed a very successful partnership with each of them and this is a strategic global decision, which is amicable with all parties and should not be perceived in any negative way for us to exit these relationships.’