Broo Ltd (ASX:BEE) has entered into a distribution agreement with Australian Liquor Marketers Pty Ltd (ALM) to distribute its Broo premium lager beer products for the retail and on-premise markets throughout Australia.
This is an exclusive agreement with owned and exclusive brands of ALM and comes after the company has been working collaboratively with ALM to accelerate the growth of its beer products.
ALM is working with Broo to distribute products across its retail and on-premise market, and as part of this, the company has launched a joint sales campaign with ALM across its extended network in Queensland.
The company has had distribution arrangements with ALM since 2018, however, these were on a non-exclusive basis.
"Delighted to join forces"
Broo’s CEO Kent Grogan commented: “We are delighted to join forces with ALM.
“Together, we are well-positioned to offer customers a point of difference with ALM’s exclusive-to-indies approach, along with our unapologetic packaging to drive further brand awareness and category growth.”
Background to ALM
ALM is the largest supplier of liquor to independently owned liquor retailers in Australia and the largest broad range liquor wholesaler in Australia.
In addition to supplying liquor stores, ALM incorporates a specialist on-premise liquor division that supports bars, clubs, restaurants and hotels.
It also provides a similar supply service in New Zealand via the Tasman Liquor Company.
ALM’s Independent Brands Australia (IBA) network has approximately 2,700 stores and includes a stable of strong national brands.
Key terms of agreement
Under the agreement, Broo has granted exclusive rights to ALM to distribute and promote Broo premium lager beer products for retail and on-premise markets within Australia during the term.
The agreement begins on February 24, 2020, and will continue for an initial term period of six months and there is scope for the parties to extend the agreement for a further term of 12 months by mutual agreement.
Pricing will be based on Broo’s standard wholesale pricing list from time to time. There are no other material terms to the agreement.