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(Alliance News) - Premium drinks maker Distil PLC said Tuesday that it terminated a joint venture agreement with UK-based distiller British Honey Co, for the production and marketing of a new range of botanical spirits, with immediate effect.
The agreement was first signed in February, under which both companies were to contribute an initial cash sum of GBP30,000 towards production and marketing of the product range, with all intellectual property rights in newly created brands and recipes jointly owned and future revenue shared equally.
Distil said the agreement was signed before the Covid-19 outbreak, and development work only started in February with little cost incurred. As a result, both companies were able to agree on cancelling the contract.
Distil has extracted the funds from the joint venture which will go towards the development of new brands and liquids.
In addition, the company noted the effect of the virus outbreak, namely the closure of pubs, bars and restaurant, leading to increased demand from the retail sector.
Distil has responded by working with distributors to supply a changing demand landscape across trade channels.
Looking ahead, Distil said it expects its performance for its financial year ended March 31 to remain in line with market expectations.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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