agreed to cede its rights to distribute
LVMH Moet Hennessy's
Glenmorangie single-malt scotch.
Terms weren't disclosed, but Louisville, Ky.-based Brown-Forman said the agreements -- under which the company acted as U.S. importer of Glenmorangie brands and represented those brands in Canada, Continental Europe and certain Asian countries -- will end Sunday. Brown-Forman, which makes Jack Daniels and Finlandia among other wine-and-spirits brands, said without offering details that the agreement provides for "consideration."
Brown-Forman has distributed Glenmorangie in the U.S. since 1992 and served as marketing agent in Continental Europe and certain Asian markets since 2000. Brown-Forman took a stake in Glenmorangie in 2000, before selling that stake to LVMH last year when the French luxury brands conglomerate acquired the rest of Glenmorangie.
"We are proud of the work done by both Brown-Forman and our distributor partners in building Glenmorangie in the U.S and key global markets into a premier single-malt Scotch brand," said Brown-Forman's Paul Varga. "However, we understand LVMH's desire to consolidate these excellent brands into their own distribution system."
Early Monday, Brown-Forman slipped 56 cents to $58.54.