LONDON (Brand Republic) – Canadian drinks and entertainment giant Seagram has insisted the auction of its spirits business is proceeding according to plan, in spite of wrangling over the distribution rights of two of its most famous brands, Captain Morgan rum and Absolut vodka.
First round bids for the company’s portfolio of brands, which is thought to be worth around £4bn, are expected to be submitted by December 11. Seagram announced it would sell up its spirits arm as part of a merger deal with French entertainment company Vivendi.
The leading bidders are Pernod Ricard of France and its UK partner Diageo, Brown Foreman in the USA and Allied Domecq.
Allied has teamed up with Distileria Seralles, the Puerto Rican supplier of Captain Morgan rum, which claims to have rights over the brand if Seagram sells it. Absolut’s owner, Swedish company Vin & Spirit, has also said a change of ownership could mean a cancellation of its distribution agreement with Seagram.
Last week, Allied inked a 10-year deal to take over the distribution of the Stolichnaya vodka brand from Diageo in a bid to enter the vodka market if it loses out on the Absolut brand.