Top eight indie spirits acquisitions
From established distilleries to fledgling brands, we examine eight independent spirits investments that have seized headlines in recent years.
A variety of independent spirits investments have made headlines in recent yearsA number of leading firms have had industry heads turning with a rush of eye-catching and, on occasion, experimental independent M&A deals.
Last year Bacardi entered the American whiskey category for the first time, expanded its super-premium rum range, and explored cachaça in the space of just a few months, while Brown-Forman took their first steps into the Irish whiskey.
More recently, Pernod Ricard extended its existing footprint in the super-premium gin category, while back in 2014, William Grant & Sons’ acquired an iconic Scotch whisky liqueur.
All of the above – and four more besides – made our selection of the top indie spirits acquisitions.
Click through the following pages to see the full list.
Bacardi and Angel’s Envy, Leblon, Banks Rum
Bacardi entered the American whiskey category for the first time with the acquisition of Angel’s Envy Bourbon in March 2015. The family-owned drinks company purchased Angel’s Share Brands, its subsidiary the Louisville Distilling Co. (LDC), and its Angel’s Envy Brand for an undisclosed sum. Bacardi is continuing with work to build a new US$12m distillery and brand experience centre, due to open later this year.
Skip forward to July, and the Bermuda-based company has announced the acquisition of Banks Rum for an undisclosed sum. Joins Bacardi’s existing portfolio of super-premium rums, Banks range includes expressions such as Banks 5-Island Rum, Banks 7 Golden Age Blend and several limited editions. Terms of the acquisition were not disclosed.
Days later, Bacardi bought Leblon Holdings LLC and its Leblon cachaça brand after serving as a minority stakeholder for a number of years. The premium cachaça brand, which celebrated its 10th anniversary last summer, was also purchased for an undisclosed sum. Although Bacardi has full ownership, Leblon’s founder, Steve Luttmann, continues to lead the company.
Pernod Ricard and Monkey 47
In January 2016 the firm purchased a majority stake in German gin brand Monkey 47 from producer Black Forest Distillers GmbH, via its German subsidiary Pernod Ricard Deutschland. The move extended the French group’s existing footprint in the super-premium gin category, which includes Beefeater, Plymouth and Seagram gin labels. The price of the takeover has not yet been disclosed, nor has the percentage shareholding between both Pernod and Monkey 47 producer Black Forest Distillers. At a recent roundtable, CEO Alexandre Ricard said “I don’t like to refer to this as an acquisition, it’s a partnership”.
Heaven Hill and Deep Eddy
Heaven Hill Brands acquired Deep Eddy Vodka in August 2015, just three months after the brand’s CEO said it had “no plans to sell at this time”. The US spirits producer purchased the entire business of Texas-based Deep Eddy Vodka and its distillery from Eliza Spring for an undisclosed sum. The brand has experienced rapid growth since its launch in 2011, largely attributed to “innovative marketing and sales programmes”. Deep Eddy continues to operate independently, with CEO Eric Dopkins as president.
Deutsch Family and Redemption Rye
Deutsch Family Wine & Spirits acquired the Redemption Whiskey family of products in June 2015 for an undisclosed sum, describing the move as “a high quality entry into the most dynamic segment of the spirits business: American whiskey”. The Redemption Whiskey stable tripled in size between 2013 and 2015, to include Redemption Straight Rye Whiskey, Redemption High Rye Bourbon, Redemption Bourbon, Riverboat Rye, White Whiskey and Limited Edition Barrel Selections, with “demand consistently exceeding supply”. The brand continues to be exclusively available in the US in limited states due to supply constraints.
William Grant & Sons and Drambuie
After spending more than 100 years under ownership of the MacKinnon family, in September 2014 William Grant & Sons purchased the Drambuie Liqueur Company Limited, which owns the Drambuie brand. Described as a “very natural addition” to the company’s portfolio, William Grant claimed it intends to completely rejuvenate the brand, which has reported declining sales in the US and Asia in recent years. While the company did not reveal how much it offered to buy the brand, analysts estimate it is worth around £100 million.
Distill Ventures and Stauning Whisky, Starward Whisky
UK drinks giant Diageo acquired a minority stake in the Denmark-based Stauning Whisky distillery in December 2015 through its investment and mentoring business, Distill Ventures. More than £10 million in total will be invested in the business, which will use the funds to build a new distillery in June 2016, increasing capacity 50 times more than it is currently capable of. The original nine founders of the distillery – who are still the main shareholders – continue to control the independent business, and plan to keep the whisky-making process in-house using the same local Danish ingredients
Later that month, Distill Ventures confirmed its second major investment after striking a deal with Australian single malt whisky brand Starward. The innovation arm plans to increase production at Starward’s current facility in Melbourne and expand the brand into new export markets, including South East Asia and the US. Co-founder of Distill Ventures, Frank Lampen, says the brand was selected for investment because of its “outstanding team” whose “commitment to innovation stands out in the fast-evolving new world whisky category”.
McCormick Distilling and Broker’s Gin
Said to be one of the oldest distilleries in the US, McCormick Distilling stepped into the premium gin category with the acquisition of Broker’s London Dry Gin and its 200-year-old UK-based distillery last November. The brand joins 360 Vodka, Tequila Rose, Hook’s Spiced Rum and Triple Crown Whiskey in McCormick Distilling’s spirits stable. Ed Pechar, McCormick’s chairman of the board, described the acquisition as “another important step toward ensuring that our portfolio is optimally structured”. Although terms of the deal were not disclosed, Broker’s Gin founders, brothers Martin and Andy Dawson, are set to remain in their roles as brand consultants for next two years.
Brown-Forman and Slane Castle
Brown-Forman made its first move into the fast-growing Irish whiskey sector in June last year with the acquisition of Slane Castle Irish Whiskey. The US drinks group announced plans to invest US$50 million in building a new distillery on the historic Slane Castle Estate in County Meath, Ireland, owned by the Conyngham family since 1701. Work is expected to be complete by late 2016, while the distillery will launch new Irish whiskey brands by the spring of 2017 using third party-sourced liquid. The new brands will be positioned in the premium and super-premium spirits segments, introducing a range of blended, pot still and single grain variants.
