- Nuvo will further leverage Lucas Bols USA’s distribution platform
Lucas Bols N.V., a leading global cocktail and spirits player (“Lucas Bols”), today announces it has reached agreement with London Group, a US based company, regarding a strategic partnership for the sparkling liqueur brand Nuvo. The partnership entails the global distribution rights as well as agreements to further develop the Nuvo brand. Initially the focus will be on the US market, followed by selected other markets around the world.
As part of the strategic partnership Lucas Bols obtains the global distribution rights for Nuvo, and will work with London Group to further build and distribute the brand. Lucas Bols will be responsible for buying, sourcing and commercial activities, as well as defining the appropriate distribution channels for the brand. London Group, controlled by spirit entrepreneur Mr. Raphael Yakoby, will be responsible for strategic marketing, including social media and product development. The transaction fits Lucas Bols’s asset light business model, as it strengthens the company’s existing distribution platform with limited additional investments required. The agreement also includes a put and call option structure that enables Lucas Bols to acquire the brand in full in the mid-term.
Huub van Doorne, CEO Lucas Bols: “We are excited to add Nuvo to our global brands distribution network, starting off in the US. Nuvo is a characteristic super premium brand that has been seeking a larger infrastructure to expand its distributional footprint. We see ample opportunities for the brand in the US, followed by other selected markets around the world. We look forward to working closely together with Raphael Yakoby, who has a successful track record in building spirits brands. With Nuvo we can expand our retail experience in the US, which also benefits the roll-out of Passoã in that market. We see this partnership as an excellent example of how we can leverage our strong marketing and distribution platform, one of our main strategic themes.”
Nuvo is a pink sparkling liqueur brand, created by Mr. Raphael Yakoby in 2007. It is a liqueur made of vodka, sparkling wine and a blend of fruit nectar. It brings the luxurious and celebratory nature of champagne, with the sophistication of an aperitif. Nuvo is mostly consumed chilled on the rocks or sometimes mixed with tequila, vodka or champagne. The brand is primarily consumed by women and is mostly sold in the retail trade. Nuvo has the potential to show substantial growth from the current volume of around 10,000 cases. Lucas Bols USA plans to integrate and relaunch the Nuvo brand effective April 1, 2018. Given the initial higher A&P investments behind the brand, the contribution to Lucas Bols’s earnings per share in the short term will be neutral to slightly positive.
Raphael Yakoby, owner London Group: “I am excited about this partnership as Lucas Bols is a great company that understands and embraces the entrepreneurial spirit. I am convinced that together we can successfully develop the Nuvo brand in the coming years.”
Bols EUR 18,50 +8ct vol. 2.031