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Catoctin Creek reacquires stake from Constellation
Rye whiskey producer Catoctin Creek Distilling Company has repurchased the minority stake it sold to Constellation Brands in 2017.
In January 2017, Svedka Vodka owner Constellation Brands revealed it had taken an undisclosed minority stake in Virginia-based Catoctin Creek, a producer of rye whiskey, gin and brandy.
At the time, Catoctin Creek said it would use the funding to increase production, hire more staff and increase marketing.
The two companies have now agreed that the Virginia producer should reclaim its stake from Constellation’s venture arm, Constellation Brands Ventures (CBV). Financial terms of the deal were not disclosed.
The move will allow Catoctin Creek to focus its ‘full attention on craft innovation, new customer experiences and additional product lines’.
During the seven-year period of working together, the investment from Constellation provided ‘substantial’ improvements at the distillery, increasing production and warehouse capacity, and improving supply-chain efficiency.
Constellation also helped expand the rye whiskey maker’s distribution in the US.
“We greatly appreciate the support and resources that CBV provided us during this time together and I am very excited about what the future holds,” said general manager Scott Harris, who founded Catoctin Creek with his wife, Becky Harris, in 2009.
The company’s flagship rye whiskey portfolio includes Roundstone Rye, Rabble Rouser Rye and Ragnarök Rye.
Earlier this month, the whiskey producer released its first new product in five years, Hot Honey Rye, which is rolling out in markets across the States.
Through its CBV arm, Constellation Brands has acquired ready-to-drink producer Austin Cocktails and Kentucky-based brandy maker Copper & Kings.
Over the past five years, the company has also invested in a number of US producers, including: Dos Hombres mezcal (founded by Breaking Bad‘s Bryan Cranston and Aaron Paul), Press Premium Alcohol Seltzer, Durham Distillery, Montanya Distillers, Mezcal El Silencio, Nelson’s Green Brier Distillery and Black Button Distilling.
Earlier this month, Constellation Brands saw sales grow by 7% in the second quarter of fiscal 2024, however spirits plummeted by double digits.