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Top 10 whisky industry acquisitions

From craft Irish whiskey brands to established Bourbon producers, The Spirits Business looks back at some of the biggest recent whisky acquisitions that have got the industry talking.

A number of high-profile whisky acquisitions have shook up the spirits industry in recent years

A number of leading spirits firms have had industry heads turning with a rush of bold M&A deals.

Last year US drinks firm Constellation Brands entered into a US$160 million deal to buy High West Distillery, followed by another quick move to buy one of the largest new whiskey distilleries in the US in the same month.

This year alone has seen some of the biggest drinks group extend their spirit offering, with some moving into American and Irish whiskey, including SPI Group’s first foray into American whiskey with the acquisition of Kentucky Owl Bourbon in January, while Bacardi entered the Irish whiskey category with a minority stake in Teeling Whiskey Company in June.

Click through the following pages to see our selection of the top 10 new deals.

Sazerac and John Distilleries

Just last month, news broke that Sazerac had entered the Indian whisky category with the purchase of an equity stake in Indian whisky producer John Distilleries.

The Buffalo Trace Bourbon producer acquired the shareholding from Gaja Capital, one of India’s leading independent private equity firms, which has remained “partially invested” in John Distilleries, producer of the Paul John Indian single malt whisky brand.

John Distilleries also produces the world’s seventh largest whisky brand, Original Choice Whisky, which sold 10.1m cases in 2016, according to Brand Champions data, and Bangalore Malt, which grew volumes by 87% in 2016 to hit 2m cases.

SPI Group and Kentucky Owl Bourbon

SPI Group purchased American Owl Bourbon in January this year, marking its entry into the American whiskey category. Kentucky Owl Bourbon, bought by SPI from Dixon Dedman and his associates, is described as a “pre-Prohibition era brand”.

SPI’s subsidiary Stoli Group USA took over national distribution, sales and marketing of the brand and said it would initially focus on expanding Kentucky Owl’s presence in southern US states.
The move follows SPI Group’s announcement of a new US$150 million Bourbon distillery in Kentucky earlier this month, which will be home to Kentucky Owl along with “additional” American whiskey brands that the company “will create or acquire”.

Bacardi and Teeling Whiskey

Bacardi made a move into Irish whiskey in June this year with the purchase of a minority share in The Teeling Whiskey Company.

Commenting on the acquisition at the time, the family-owned drinks group said it is a “big believer” in founders Jack and Stephen Teeling and the company’s range of Irish whiskeys.

The Dublin-based firm will continue to lead and run the business and will operate independently and autonomously.

Rémy Cointreau and Westland Distillery / Domaine des Hautes Glaces

In 2016, the Rémy Cointreau Group added two whisk(e)ys to its portfolio with the acquisition of Domaine des Hautes Glaces, an organic single malt whisky distillery in the French Alps, and Seattle-based Westland Distillery.

Since 2009, ‘grain-to-glass’ distillery Domaine des Hautes Glaces has produced single malt whiskies in the Trièves Mountains, an area located at 900m altitude within the French Alps.

Following Domaine des Hautes, Rémy Cointreau purchased Westland’s assets as part of plans to expand its portfolio in the fast-growing single malt whisk(e)y category – a movement that the distillery is “at the vanguard of”.

Pernod Ricard and Glenallachie

Back in July, Pernod Ricard’s Scotch whisky arm Chivas Brothers sold the Glenallachie Distillery in Scotland to a consortium of investors led by Billy Walker, former managing director of the BenRiach Distillery Company.

The multi-million pound deal also includes blended Scotch whisky brands MacNair’s and White Heather, which it “plans to rejuvenate with a various range of ages”.

The company plans to launch a range of “premium quality yet affordable” whiskies, including a range of aged expressions from a 10-year-old to a 25-year-old.

Moët Hennessy and Woodinville Whiskey Company

LVMH’s wine and spirits division Moët Hennessy made its first foray into the American whiskey category in July with the purchase of Washington-based Woodinville Whiskey Company (WWC).

Said to be Washington state’s largest craft distillery, WWC was founded in 2010 by longtime friends Orlin Sorensen and Brett Carlile – who will continue to oversee operations at the Woodinville-based site after the transaction has been completed.

Constellation Brands and High West Distillery

The US$160 million acquisition of High West Distillery – Utah’s first distillery since 1870 – bolstered Constellation’s strategy to increase its premium focus in the US while at the same time enabling the firm to enter the fast-growing Bourbon and rye categories.

As part of the deal, Constellation is set to help fund the expansion of the 30,000-square foot distillery and visitor’s centre, adding a second still capable of producing around 50,000 cases of whiskey a year.

High West chief executive John Esposito continues to run the business, working alongside Newlands in building Constellation’s spirits stable.

Quintessential Brands/ Stock Spirits and Dublin Whiskey Company

Quintessential Brands acquired the Dublin Liberties Distillery Company and its €10 million distillery, along with The Dublin Liberties and The Dubliner Irish Whiskey brands in March last year. Following the deal, it was announced in July that Stock Spirits had purchased a 25% stake in the distillery for up to €18.3 million (US$21m), marking the Central and Eastern European group’s entry into Irish whiskey.

The UK-based firm is currently building The Dublin Liberties Distillery in Dublin, which will produce single malt Irish whiskey, and is scheduled to be completed in summer 2018.

Including a €10 million banking facility with Wells Fargo Bank, Stock Spirits’s €28 million investment will be used to complete the construction of the distillery, accelerate advertising and promotion, and to finance working capital and stock maturation.

Constellation and Bardstown Bourbon Company

After purchasing craft whiskey producer High West Distillery in October last year, Constellation Brands continued its acquisition streak with the purchase of a minority stake in The Bardstown Bourbon Company just two weeks later. The distillery is thought to be the largest new whiskey distillery in the US.

The deal is one of a number of transactions made across Constellation’s drinks portfolio as part of a wider strategy to focus on premium, high-margin, high-growth brands while building shareholder value, according to the firm.

Thai Bev and Myanmar Distillery Company

Last month, Thai Beverage Public Company acquired a 75% stake in Myanmar Distillery Company, the producer of Grand Royal whisky.

The deal includes a 75% stake in Myanmar Supply Chain and Service Co and Myanmar Distillery Company (MDC) from four third-party investors including equity firm TPG.

Founded in 1995, MDC is the largest spirits company in Myanmar and produces a range of spirits including whisky and gin. The deal includes the company’s two distilling, blending, and bottling facilities in Yangon and Mandalay under its Grand Royal brand.

The deal will allow Thai Bev to access the spirits market in Myanmar as the company’s seeks to expand its business in south east Asia.

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