Suppliers Issue Six-Month Notice Proposing Cessation of Distribution Rights for Jose Cuervo, Kraken, Bushmills Brands
The company received written notice from Casa Cuervo, Crista La Santa, Proximo Spirits and JC Master Distribution proposing to end its distribution relationship.
- Notice Period
- Six months' prior notice given
- Proposed Cessation Date
- March 31, 2027
- Brands Affected
- Jose Cuervo, 1800 Tequila, Maestro Dobel, The Kraken, Bushmills
- Territories Covered
- India, Sri Lanka, Maldives, Bhutan, Bangladesh, Nepal, Pakistan and duty-free markets
- Company Position
- Does not concur with proposed termination; engaged legal advisors; evaluating legal options
What was shared
The company disclosed under Regulation 30(4) that it has received a written notice from Casa Cuervo, S.A. de C.V., Crista La Santa, S.A.P.I. de C.V., Proximo Spirits, Inc. and JC Master Distribution Limited (together, the Suppliers), proposing cessation of the distribution relationship for certain products/brands in certain specified territories.
Notice period
The Suppliers stated they are providing six months' prior written notice of their intention to terminate the importation and distribution rights granted to the company, with March 31, 2027 stated as the proposed date of cessation.
Brands covered
- Jose Cuervo, 1800 Tequila, Reserva de la Familia
- Maestro Dobel Tequila, Gran Centenario Tequila, Maestro Dobel 50
- Creyente Mezcal, 400 Conejos Mezcal
- The Kraken Black Spiced Rum
- Bushmills Irish Whiskey, The Sexton Irish Whiskey
- and other branded products
Territories
India, Sri Lanka, Maldives, Bhutan, Bangladesh, Nepal and Pakistan, including applicable duty-free/global travel retail markets.
Company's position
The company says distribution and importation of these brands is part of its normal course of business, but treats the matter as material given the nature and significance of the proposed cessation and its potential impact on business operations and financial performance.
The company does not concur with the proposed termination and is evaluating its legal options. It has engaged legal advisors and says it will take steps to protect its rights and interests. Without prejudice to its position on the validity of the proposed termination, it is taking steps to ensure uninterrupted business operations as prudent business continuity planning.
Financial impact
The financial impact of the proposed cessation, if given effect to, is presently being evaluated. The company said it will keep the stock exchange informed of material developments. It also noted certain statements are forward-looking and involve risks and uncertainties, with actual outcomes possibly differing materially.
How investors may read it
The notice concerns a set of well-known imported spirits brands across the company's core markets, and the company itself has called the matter material. At the same time, the termination is proposed rather than effected, is disputed by the company, and the quantum of impact is still under evaluation.
More numbers
- Prior written notice period stated by Supplierssix months
- Number of Suppliers issuing the noticefour (Casa Cuervo, Crista La Santa, Proximo Spirits, JC Master Distribution)
- Territories covered by proposed cessationIndia, Sri Lanka, Maldives, Bhutan, Bangladesh, Nepal and Pakistan
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