This brings the company’s distribution in-house for the first time since it entered the market.
Slovakia has a substantial premium whiskey market, notes Brown-Forman: with American whiskey leading the category by value.
“Slovakia is an important market as we drive the global growth of the Jack Daniel’s Family of Brands and other brands in our portfolio, in particular, our recently acquired Diplomático rum. We strongly believe that the creation of our own distribution business in this market will offer increased consumer focus and prioritization of our brands,” said Marshall Farrer, EVP, Chief Strategic Growth Officer and President, Europe Division, Brown-Forman.
Brown-Forman’s global distribution models are shaped, among other factors, around the structure of the retail and wholesale trade in a market and its portfolio’s development stage in that particular market.
Brown-Forman directly sells its brands in several European markets, including Belgium, Czechia, France, Germany, Luxembourg, Poland, Spain, Türkiye, and the UK.
In Japan, it recently announced the end of a distribution agreement with Asahi: deciding to distribute its own brands from April, 2024.
In the US, it generally sells its brands either to distributors or to state governments (in states that directly control alcohol sales) that then sell to retail customers and consumers.
In other markets, including Italy and South Africa, it relies on third parties to distribute its brands, generally under fixed-term distribution contracts.