Brewing and beverage firm Distell is terminating all third-party distribution partnerships in the UK as it seeks to handle its own portfolio in the country.
The South African brewer will cease its existing distribution contracts with SHS, Cellar Trends and Brand Phoenix from early next year and will establish its brands such as Nederburg, Two Oceans and Fleur du Cap brands, Savanna cider, Amarula cream liqueur, Scotch whisky Deanston, Ledaig, Bunnahabhain and South African wine portfolios by itself.
Distell said it views UK as a key region for its growth and has been increasing its investment in UK and Europe in infrastructure in order to adapt to the changing situation.
Earlier this year, the company announced its plans to double its size by 2020.
As part of its expansion in the UK, Distell has expanded the country's commercial team significantly for a better coverage cross several key trade channels. It also has plans to expand it further next year.
It has also been increasing its size at its UK head office in East Kilbride, Scotland to efficiently manage customer orders for its entire product portfolio across the country.
Distell UK commercial director Joseph Walsh said: “We have worked closely with all of our distribution agencies to implement a smooth and well executed transition. 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.
“We will continue to work together over the coming weeks to ensure a smooth integration for all of our mutual customers’ benefit.
The company also plans to move its European head office to Richmond, London by middle of this month.