V Rum owner seeks new brands
British company V IP Brands, owner of V Rum, is looking to acquire established spirits brands and distilleries.
The privately financed venture aims to purchase complementary spirits brands and producers to create a more extensive and diverse portfolio of brands.
V IP Brands is seeking acquisitions of businesses with revenue typically ranging from £1m-£10m (US$1.3m-$12.9m) that are either profitable or unprofitable.
Given the challenging market conditions, the company describes itself as ‘well-positioned to assist’ those who have faced difficulties in securing capital for growth opportunities.
Carl Churchill, CEO of V IP Brands, said: “As a group, we are rich in assets, have a great team and back-office infrastructure, and importantly, our own capital to deploy.
“We are now looking to acquire brands that could have a home within our wider group and leverage the investment we have made in our business.”
With the new venture, the company aims to offer brands an opportunity to be part of a larger group, which enables each respective business to benefit from shared resources, including access to various market channels, flagship customers, and a well-established marketing and back-office team.
Churchill continued: “The market has become increasingly challenging, and we have, unfortunately, seen the closure of some exceptional brands and equally exceptional liquids. There is still plenty of opportunity in the market, but we must adapt to the changes in the industry. Brands must invest in growth opportunities and the evolution of their products.
“Sadly, the market is not rich with investment in the way it was 10 years ago; we are seeing the closure of incubator programmes and future investment and exit opportunities getting smaller and smaller – for the good of the future of the market and independent producers, that’s what we intend to change with V IP Brands.”
V IP Brands is seeking established brands that meet one criterion: they must have existing sales, established routes to market, and either demonstrated profitability or projected future profitability with investment, combined with their innovative ideas and support.
For more information about the initiative, including an acquisition questionnaire, please visit the company’s website.
In a step towards different direction, Diageo announced earlier this month that it will no longer bring new brands into its Distill Ventures accelerator programme.
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