Soft drinks makers Highland Spring and Suntory Beverage & Food GB&I have mutually agreed to end their distribution partnership which has been in place for the last seven years.
The two companies stated that having collaborated effectively to serve the market, they had both agreed that now was the right time to “move in different directions”. The tie-up will officially end on 26 February 2023.
As part of the exit, the Highland Spring Group has agreed a deal with SHS Sales & Marketing who will distribute its water products in the impulse and out-of-home channels.
Under the deal, SHS will take over distribution of the Highland Spring and Hydr8 brands within wholesale, convenience and on-premise channels. The Highland Spring Group will continue to handle the grocery channel and its private label business in-house.
The Highland Spring brand saw UK sales volumes grow by 6.3% to 348.6m litres in 2021, securing a market share of 10.0% of total plain packaged water volumes.
Simon Oldham, Joint Managing Director at the Highland Spring Group, said: “We would like to thank Suntory for helping develop the Highland Spring brand over the last seven years and the part they have played in enabling us to achieve our position as the UK’s No.1 plain bottled water brand. We look forward to partnering with SHS and continuing to be a trusted and valued partner for our customers.”
Alpesh Mistry, Sales Director at Suntory Beverage & Food GB&I, added: “We have had a wonderful collaboration with Highland Spring Group for a number of years. We exit our relationship on excellent terms and this change will allow us to focus on delivering success for our core brands as well as to further concentrate efforts on our own product innovation initiatives across all retail channels and routes to market.”
Meanwhile, John Heynen, Managing Director at SHS Sales & Marketing, commented: “We are delighted to be working in partnership with the Highland Spring Group to distribute Highland Spring and Hydr8.
“Our highly experienced team is looking forward to continuing SHS’ strong track record of delivering growth for its brand owners and customers with these leading brands in the wholesale, convenience and on-premise channels. The transition process is already underway to ensure seamless ongoing management of trade customers ahead of the formal exit date.”
