Drinks firms merge to form major force

TWO leading drinks distributors have joined forces to create a major new force in the trade. The strategic partnership between Barry & Fitzwilliam and Maxxium.

Ireland has, at a stroke, created a powerful 55m operation that joins the big players at the top of the trade.

The deal comes after two years of talks. Maxxium was thought to also have been talking to Woodford Bourne and Roaringwater Bay, which markets Boru Vodka.

The move will be finalised in February, when Barry & Fitzwilliam managing director Michael Barry becomes managing director of Barry & Fitzwilliam Maxxium. This new name will market a greatly enhanced portfolio of wines, champagnes, spirits, beers and liqueurs. It’s being presented as a joint operation. However, some drinks industry insiders say that in reality the deal marks the absorption of Maxxium’s brands by bigger, 31m-turnover B&F. This theory suggests that with far more accounts and superior quality contact with its customers, B&F is simply better positioned to sell the brands, offering a slicker route to market for Maxxium’s brands. But although it may resemble a takeover, Michael Barry insists that it’s not.

“No, it’s a strategic partnership, says Mr Barry. “We’re aligning our operation with a major international drinks company. It’s just a great fit. Barry & Fitzwilliams’ strength is in the wine stable and Maxxium’s is in spirits, so they’re complementary to one another. Both companies will continue in existence and there will be no change in the shareholding of either firm.”

Either way, as the big four players in the trade become the big five, the move propels Mr Barry and his firm from the top of the first division into the premiership.

“In terms of the brands, the two companies form a near-perfect fit with each other,” says Michael.

In the creation of the new venture, there will be 11 job losses. But as well as proper redundancy packages, the staff will get training and assistance toward securing employment in the future.