Beam Global Sells U.S. Distribution Rights for Dalmore Scotch

Rumors earlier this week that Beam Global planned to sell its U.S. distribution rights for Dalmore Scotch to UB Group have panned out. Beam Global announced today it has sold the rights to UB for $58 million.

“This is a win-win transaction for Beam Global and for UB Group,” said Tom Flocco, president and chief executive officer of Beam Global. “The U.S. distribution rights for The Dalmore offered limited upside for us due to supply agreements that would have constrained our long-term supply. At the same time, UB Group was eager to consolidate worldwide distribution of The Dalmore, having purchased the brand earlier this year.”

The Dalmore generated annual sales for Beam Global of approximately $6 million. The transaction also included the brand’s inventory currently owned by Beam Global, as well as a transition services agreement under which Beam Global’s Future Brands distribution j-v will continue to handle the distribution of The Dalmore.

It seems Beam is eager to make room for Absolut. As you know, Beam sold its wine portfolio to Constellation in November, a move that many in the industry speculated was meant to make room for V&S if the company is, in fact, successful in acquiring the high-in-demand Swedish vodka.