In a statement, Blavod said the deal with owner West Indies Rum Distillery has been terminated "by mutual consent”.
The out-of-court settlement follows allegations from Blavod that WIRD had been in breach of contract over the distribution agreement.
Blavod said this allegation had been withdrawn and a financial settlement made in Blavod’s favour.
Blavod will continue to supply Cockspur for a short transitional period, and said it would announce future plans for participation in the rum category “in due course”.
WIRD chairman John Taylor said Cockspur was “now ready to embark on the nest stage of its development within the UK”.