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US. Diageo and UETA have resolved a major payment dispute which surfaced publically last week, the parties announced today.
“Diageo and UETA have reached an agreement, and they look forward to the continuation of their business relationship,” sid the companies in a joint statement.
As reported, Diageo had alleged it was owed around US$39 million for unpaid stock [a figure disputed by UETA]. The dispute escalated dramatically this month when Diageo Brands successfully sought a sequestration and seizure order from a local court relating to inventory held in UETA’s Texas warehouses.
UETA dominates the important US/Mexico land border duty free business. The company is part of The Falic Group, which also runs Duty Free Americas and is the major duty free player on the US/Canada land border.
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A Diageo source told The Moodie Report today: “Diageo and UETA have reached an agreement.”
We understand that the terms of the settlement will allow the companies to continue business in the future.
Counting all its business activities, The Falic Group is understood to be Diageo’s biggest client in travel retail-related channels.
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MORE ON THE DIAGEO/UETA DISPUTE
Dialogue continues in bitter UETA/Diageo dispute; but no resolution imminent – 11/03/09
