Bermuda-based Bacardi Ltd., the world's largest privately held spirits company, has announced a mutually agreement with Brown-Forman on their distribution arrangements in Europe.

Bacardi and Brown-Forman have renewed their contracts for Bacardi to distribute Brown-Forman brands in Belgium, Luxembourg, Denmark, Austria, Switzerland, Portugal and Andorra, effective from May 1. In addition a contract was renewed for Brown-Forman to distribute the Bacardi portfolio of brands in the Czech Republic, also effective May 1.

Bacardi will cease distributing the Brown-Forman portfolio in The Netherlands at the end of April and stop distributing in Russia at the end of September, where Bacardi wants to focus on its own core portfolio.

"Bacardi has had a long and successful relationship with Brown-Forman encompassing many key regional and local markets - and these decisions allow our unique distribution partnerships to continue to flourish," said Bacardi Ltd. CEO Séamus McBride. "We will continue to work together to look for opportunities that suit both our needs around the world."

The two companies' co-operation will continue in the US and the UK as well in other markets worldwide.