SINGAPORE – Spain-based Grupo Osborne, one of Europe’s oldest producers of wines and spirits, has chosen a listed Singapore company to distribute its products here, with a view over the longer term to develop products for the Asian market.
Under a five-year agreement with Osborne, Octopus (Asia-Pacific) Holdings will manage its distribution value chain in Singapore, the companies announced on April 13.
Osborne owns and manages more than 30 brands of wines, spirits and gourmet products, including global labels such as Carlos I brandy, Nordes gin, Cinco Jotas ham and Bodegas Montecillo wines.
Octopus said these brands are established premium labels with deep heritage in Europe, even if they are less visible in Singapore today.
“While awareness in Singapore is still developing, Osborne’s brands are far from new – we bring over 250 years of heritage and a portfolio of premium products with strong positioning in Europe, US or China,” said Ms Elaine Teh, executive chairperson of Octopus Distribution Networks, the main operating subsidiary of Octopus.
The companies’ agreement includes distribution across retail, on-trade and e-commerce channels, alongside marketing, trade execution and brand positioning.
The agreement is renewable for successive three-year periods.
Osborne was founded in 1772 and has a presence in over 70 countries, supported by production facilities in Spain.
Its products will continue to be made in Spain and imported to Singapore, Octopus said in response to queries from The Straits Times.
“Maintaining production in Spain is essential to preserving the authenticity and quality of our products, which are key pillars of our positioning,” Ms Teh said.
She added that while local production could be considered in the future if scale justifies it, the priority today is to build the brands properly in the market.
Octopus also acknowledged that in Singapore, brands like Absolut, Bacardi, Hendrick’s and Gordon’s dominate shelf space and consumer mindshare.
“We do not aim to compete head-on with global volume-driven brands. Instead, our positioning is complementary – focused on premium, differentiated European products with strong storytelling and heritage,” Ms Teh said.
“In this context, depth of portfolio and brand identity are as important as scale.”
Octopus is listed on the Singapore Exchange Catalist board. It was formerly called GS Holdings, but was renamed Octopus in March after it disposed of its legacy food and beverage businesses, including foodcourts, coffee shops and restaurants here.
It is pivoting into alcohol distribution and brand-building over time.
Brands that Octopus currently distributes include Tsingtao beer, Budweiser and Corona.
Its partnership with Osborne will also potentially allow both companies to scale distribution across the Asia Pacific, as Octopus builds its regional presence.
Osborne chief executive Fernando Terry Osborne said: “Asia-Pacific is a priority region for our brands, and Singapore provides a solid platform from which to strengthen our presence in high-potential markets.”
Octopus added that Asia represents significant long-term growth opportunity, while Europe remains a mature market.
“We believe that producers who invest consistently in brand-building will be best positioned to capture this shift,” Ms Teh said.
Octopus chief executive Paul Hopkins said the partnership could go beyond distribution.
“By combining Osborne’s production expertise with our market knowledge, we will be able to develop products built for Asian consumers,” he said.
“It marks a step forward in our strategy to become not just a distributor of global brands, but a creator and owner of brands in our own right.”
Osborne will also invest $5 million in Octopus by subscribing for new shares at 6.8 cents each, representing a 13.33 per cent premium to the company’s last closing price of six cents on April 9.
Octopus was trading flat at 6.1 cents on April 13.
