Close Menu

Stock Spirits to buy Borco

Poland-based Stock Spirits has agreed to acquire German producer Borco, owner of Sierra Tequila, for an undisclosed sum.

Borco Sierra Tequila
Borco is the owner of Sierra Tequila, which was founded in 1981

The deal, which is subject to German and Austrian regulatory processes, will enable Stock Spirits to enter Germany and the Tequila category.

Stock Spirits plans to use Borco’s distribution structures to bring its own brands to new markets.

Described as one of the leading alcohol producers in central Europe, Stock Spirits operates five production sites and its brands are available in more than 50 countries.

The company owns vodka brands Prestige, Lubelska and Żołądkowa, as well as Božkov rum, herbal liqueur Fernet Stock and Stock 84 brandy.

Through the deal, family-owned Borco will gain a ‘strong strategic investor’ to drive the global expansion of its brands.

Jean-Christophe Coutures, Stock Spirits CEO, said: “Borco has been a trusted and respected player in Germany and Austria for many years. The acquisition of Borco will be important step in our Western Europe expansion.

“Borco will benefit from better development opportunities including access to Stock’s extended spirits portfolio. Stock Spirits will gain access to the German market, one of the largest and most dynamic spirits market throughout Europe.”

In 2021, Stock Spirits was acquired by private equity and investment firm CVC Funds in a deal worth £767 million (US$1.1 billion).

Krzysztof Krawczyk, partner at CVC Capital Partners, said: “Our investment in Stock Spirits assumed M&A [mergers and acquisition] growth into new geographies across Europe and we are delighted that the business is making a strong progress in this strategic direction.

“Borco’s brands, in particular Sierra Tequila, have a great international potential, which we want to develop, and it’s an important addition to Stock’s geographic footprint.”

Sierra Tequila is available in more than 91 countries, including Australia, Thailand and Chile. The brand recently created a low-ABV bottling, called Tropical Chilli.

Borco, which also owns herbal liqueur Helbing Kümmel, has been a family-owned business since it was founded in 1948.

‘End of an era’

Markus Kohrs-Lichte, chairman of the management board of Borco, said the agreement was the “right step into the future” for the German spirits firm.

“The company will be able to continue to develop effectively and consistently expand its international business, which is good news for customers, business partners, and employees,” he continued.

“At the same time, the acquisition also marks the end of an era for Borco as a family-owned business. Me and the team are grateful for the special years we experienced together with the Matthiesen family company and for the trust placed in us.

“The Matthiesen family built one of the leading spirits companies in Germany from the ground up, and paved now a new path for Borco. I look forward to a new chapter in the company’s long and successful history.”

Headquartered in Warsaw, Poland, Stock Spirits has more than 1,200 employees.

The potential acquisition comes just weeks after Stock Spirits agreed to buy blended Scotch brand Clan Campbell from Pernod Ricard.

Simultaneously, Stock Spirits also entered into negotiations to buy French spirits distributor Dugas, which is subject to regulatory approval in France.

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No