Jägermeister completes Sidney Frank acquisitionBy Amy Hopkins
Jägermeister has completed the acquisition of its former US importer the Sidney Frank Importing Company as the “next logical step” in the group’s long-term strategy.
It was revealed in June this year that German herbal liqueur producer Mast-Jägermeister had bought SFIC for an undisclosed sum after more than 40 years of being imported by the firm.
The acquisition represented Jägermeister’s bid to take its key distribution channels in house and followed the creation of its wholly owned UK distribution arm in 2013.
Jägermeister will now handle all of SFIC’s distribution contracts, which include actor George Clooney’s Casamigo’s Tequila and Monkey 47 gin.
SFIC is now a wholly owned subsidiary of Mast-Jägermeister but will continue to operate under its existing name.
The German group now controls all dimensions of SFIC’s value chain, including two thirds of its global distribution, as well as logistics, sales, promotions and marketing in its three biggest markets – the US, Germany and UK.
“SFIC and its people have been integral to the success of the Jägermeister brand in the US and, as we have previously stated, acquiring the company is the logical next step in our long-term strategy for both the US market and our company,” said Michael Volke, member of the executive board of Mast-Jägermeister.
“The US is the largest Jägermeister market in the world. Given this lighthouse role for the global spirits industry, we are confident this move will strengthen the future development of our brand in the US and beyond.”
The acquisition means that one third of Mast-Jägermeister’s workforce is now based in the US and UK. New york-based SFIC employs approximately 180 people.
Since both companies are privately owned, the financial details of the deal have not been disclosed.
Jägermeister has recently attempted to battle challenges in its key US market, where aggressive pricing and changing consumer trends led to an overall 5.6% sales decline for the brand in 2014, with a its new 56 Parts. Best as One” campaign.