Jägermeister has set up its first ever foreign distribution subsidiary in the UK after seeing “outstanding growth” in the market.

German-based Mast-Jägermeister SE, owner of the herbal liqueur brand, is working with UK distributor Cellar Trends to set up the new subsidiary, which will come online next month.

In a two-step move Cellar Trends will form a daughter company called CTJM, which, once established, will be transferred to Mast-Jägermeister ownership, taking on the name Mast-Jägermeister UK Ltd.

Around 50 Cellar Trends employees will be transferred to the new subsidiary

Cellar Trends has distributed Jägermeister for 13 years and in that time the UK has become the brand’s third largest market.

Martin Watts, joint managing director at Cellar Trends, said: “We create the new subsidiary to ensure that there is a seamless continuity of service as we enter the busiest period of the year. This way we can also ensure that when the business transfers to the brand owner, it will be a fully operational business.”

Michael Volke, executive board member at Mast-Jägermeister, said: “The decision to establish a fully owned distribution company would not be possible without the outstanding success and capabilities of our partner Cellar Trends in building consumer relevance and a substantial business for Jägermeister.

“The UK has become the third largest and one of the most dynamic Jägermeister markets in the world. The British spirits market also often sets the trend for the category elsewhere, so managing the development of the brand here has become of major importance to us.”