Eastside Distilling buys Azuñia Tequila for $14.7m
Portland-based Eastside Distilling has acquired Azuñia Tequila from Intersect Beverage in a deal worth approximately US$14.7 million.
Azuñia Tequila produces its Blanco Organic Tequila, Reposado Organic Tequila, Añejo Tequila, and Azuñia Black Tequila from 100% blue weber agave in Mexico.
The brand’s 12-month sales to June 2019 were valued at US$3.5 million, an increase of 37% compared to the same period the previous year.
Robert Manfredonia, president of Eastside Distilling, said: “The acquisition of the Azuñia portfolio of Tequila perfectly aligns with our go forward objectives to leverage and drive our national platform strategy, which we believe will significantly expand shareholder value.
“The above-premium and luxury Tequila categories are some of the fastest growing sub-segments of the spirits industry, and categories in which our regional and national distribution partners, as well as tier-one national accounts, are actively seeking products.
“The team at Azuñia has created strong on-premise adoption of the brand, which, when combined with Eastside’s off-premise expertise is expected to benefit not only the Azuñia portfolio, but our other existing brands. We look forward to presenting Azuñia to key retail accounts beginning immediately.”
Prior to Eastside’s acquisition, Azuñia was owned by Intersect Beverage, of which Stephanie and Pat Kilkenny are the majority shareholders.
As part of the transaction, Eastside is expected to invite Stephanie Kilkenny to join its board of directors subject to board and committee approvals.
Stephanie Kilkenny said: “As we embarked on the next stage of growth for Azuñia, we recognised that what we were looking to create was exactly what Eastside Distilling could offer to us: a fully integrated sales organisation with strong distributor relationships and an existing footprint in the country’s largest independent and national retailers.
“Further, the cultural fit aligns perfectly with that of the Azuñia team, which takes tremendous pride and passion in the products that we produce for our customers. As I had a chance to spend time with the management of Eastside there was a clear desire to create something significant in the spirits industry, and I knew we wanted to be a part of it and a major shareholder in Eastside.”