Bermuda-based Bacardi Ltd., the world's largest privately held spirits company, has announced a mutual agreement with Brown-Forman to end their distribution arrangements in Germany and not to renew their distribution contract which expires at the end of September 2010.

Bacardi, which has distributed for Brown-Forman in Germany for a number of years, said it wished to focus on its core brands of Bacardi rum, Martini vermouth, Grey Goose vodka, Eristoff vodka, Bombay Sapphire gin, and Dewar's Scotch whisky, in the German market, while Brown Forman will be making its own arrangements to create a new subsidiary.

"This decision supports Bacardi's strategy of growing its family of premium brands in key regional and local markets," said Bacardi Ltd.'s CEO Séamus McBride.

The two companies' co-operation will continue in the US and the UK as well as a number of other markets worldwide, with both firms seeking to explore new arrangements where appropriate.