Jägermeister and Cellar Trends to part company

10-Sep-2013 - Last updated on 11-Sep-2013 at 11:02 GMT

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Michael Volke of Mast-Jägermeister (left) and Martin Watts, joint MD of Cellar Trends shake hands on the deal

Jägermeister’s parent company Mast-Jägermeister SE, is to set up its first subsidiary office outside of its native Germany to look after the brand in the UK.

The company has reached a “totally amicable and joint decision” with current UK distributor Cellar Trends, which has had huge success with the brand in the UK.

Jägermeister currently accounts for 50% of the Cellar Trends’ business.

The Jägermeister part of Cellar Trends activities will be transferred into a new daughter company of Cellar Trends, called CTJM, from next month.

Once CTJM has been successfully established, sometime in 2014, it will be transferred to Mast-Jägermeister, although Cellar Trends will continue to provide services to “ensure business continuity,” Martin Watts, joint managing director of Cellar Trends, told The Publican’s Morning Advertiser.

“This is not an amputation but a reshuffling of resources,” said Watts.

“From a Cellar Trends perspective we have grown Jägermeister spectacularly and very successfully, but we have a portfolio of other brands that also need time and resources and this will enable us to have more balance of focus.

“Our turnover will go down significantly but we will still be the largest independent distributor in the UK.”

He confirmed the company would be open to taking on new brands: “The door is always open but we are picky,” he said.

Michael Volke, who sits on the executive board at Mast-Jägermeister, said the decision was a “big change” for the company but that the UK was the third biggest market for Jägermeister (behind the US and Germany) and a key market in terms of innovation and setting global trends.

“This is a very good opportunity for us to get much closer to consumers and the trade in a very strategic market for us and the spirits category globally,” he said.

Investment in the brand was recently increased, alongside a new campaign which aimed to shift the focus away from Jägerbomb serves, which account for up to 90% of the herbal liqueur consumed.

This would all continue under the new structure, beginning with a campaign drive in November ahead of Christmas.

About 50 Cellar Trends employees would be moved to the new company as part of the deal and “it is anticipated” that more staff will be recruited.

Guy Lawrence has been appointed to run Mast-Jägermeister UK Ltd after it has been transferred from Cellar Trends.