Eppendorf sells Brinkmann.

As global demand for analytical instrument and associated laboratory products grows and customer reliance on service and application support becomes even more important, distribution decisions have become more complicated. Recent changes in US distribution for one European laboratory products

For more than a decade, Eppendorf AG, a German manufacturer and seller of a range of laboratory products, including pipettes, thermal cyclers, reagents and microarrays, has distributed its products in North America through its Brinkmann Instruments subsidiary as well as through Eppendorf North America. Brinkmann Instruments also served as a North American distributor for a number of other European companies, including Metrohm AG and Buchi AG. In 2005, Brinkmann recorded revenues of 39 million [euro] ($49 million), according to Eppendorf's annual report. However, late last year, Eppendorf sold Brinkmann Instruments to Metrohm. Eppendorf had co-owned Brinkmann with Metrohm in the mid-1990s (see IBO 5/93) before buying out Metrohm's share.

As a result of the divestment, Eppendorf North America is now the sole focus of the company's North American distribution efforts. Not only does this assist marketing and service of Eppendorf products, but as the company notes in its annual report, will improve gross margins. North America is Eppendorf's largest market, accounting for 54.4% of 2005 sales. Direct distribution as well as the establishment of a production facility for plastic consumables in Enfield, Connecticut in 2004 also means a greater proportion of costs will be in US dollars.

But Eppendorf is not the only European company going direct in the US. In a related action, IBO has learned that Buchi Hill discontinue its relationship with Brinkmann in November and address the North American market through its US sales and support organization, which was established a few years ago. In addition to supporting distributors and dealers in North America, these direct organizations can also more effectively support efforts with end-users for more sophisticated equipment not easily sold through distributors. Similarly, Metrohm's sole ownership of Brinkmann Hill also allow it to provide similar support for Metrohm products.