Lucas Bols N.V., a leading global cocktail and spirits player (“Lucas Bols”), today announces it has signed an agreement with Italy-based Pallini SpA regarding the US distribution of the Pallini Limoncello brand. In the US Pallini is a premium and leading Limoncello brand, with steady mid-single digit annual growth rates. The brand perfectly fits the Lucas Bols portfolio and can seamlessly be added onto the distribution platform of Lucas Bols USA. The distribution contract will take effect mid December 2020 and is expected to add approximately US$ 3.5 million to Lucas Bols USA revenue on an annual basis and will positively contribute to EBIT. The initial contract term is five years, provided certain performance criteria are met.
Pallini SpA is a family owned distilled spirits company founded in Abruzzo, Italy in 1875. Pallini Limoncello is a leading international brand, present in over 45 countries. The US is the largest market for Pallini Limoncello.
The distribution agreement fits Lucas Bols’ asset light business model, as it strengthens its distribution platform with limited additional investments required. The distribution platform that has been built over the last years in the US has a proven track record, among others by leveraging its well-developed distributor network and management information systems.
The Pallini brand is clearly complementary to the Lucas Bols brands, with synergy benefits most notable with Galliano, Lucas Bols’ Italian liqueur brand. As Pallini is primarily a retail-driven brand, it will enhance our proposition to the retail market while at the same time we can unlock Pallini’s potential in the on-trade market.
Huub van Doorne, CEO Lucas Bols: “We look forward to further build the well-known Pallini brand in the US market. We can add value to the brand with our on-trade expertise and it will increase the operational leverage of our distribution platform. The accelerated growth of the Passoã brand, and the recent successful launch of Damrak Virgin 0.0, demonstrate the growth potential of our US platform. We look forward to a successful partnership with the Pallini team.”
Micaela Pallini, Presidente Pallini SpA: “In each market we look for the best partner and we are delighted that we can team-up with Lucas Bols in the US market. I firmly believe that Lucas Bols USA is well-positioned to successfully grow our brand further due to their deep understanding of the US market and excellent network, especially in the on-trade.”