Catoctin Creek seeks investors
Two years after buying back Constellation Brands’ stake, the founders of Catoctin Creek are aiming to raise up to US$5 million for expansion.
Rye whiskey producer Catoctin Creek Distilling Company has launched a private placement memorandum (PPM) to secure funding for expansion, including at least one new “high-traffic location”, and new product launches.
Married couple Scott and Becky Harris founded Virginia-based Catoctin Creek in 2009. The distillery produces whiskey, gin and brandy.
In January 2017, High West Whiskey owner Constellation Brands took an undisclosed minority stake in Catoctin Creek. However, in October 2023, the couple repurchased the stake, returning the business fully to their hands.
During the seven years working together, the investment from US firm Constellation provided ‘substantial’ improvements at the distillery, increasing production and warehouse capacity, and improving supply-chain efficiency.
Now, the founders are seeking new backers through a PPM, with a minimum investment of US$25,000.
Scott Harris said: “So we put out a call for investment, a private placement memorandum, and we’ve actually raised some nice funds already on that for some new initiatives that we have coming out, which I will keep secret, but some new products and some new initiatives for growth.”
Harris says the business is looking to raise up to US$5m. “We’ve already raise just under a million dollars,” he noted. “I’m kind of waiting until we reach our first million before we start deploying some of those funds.”
He says the investment drive has been “well received”, adding: “We’re mostly raising money from smaller partners, people we know and people around our community.”
Exit plan
Harris continued: “Essentially, once people invest, they’ve got a share of the company, and then the goal is to grow quite nicely. Over time, one day, you know, Becky and I are both approaching 60, right? So we’re not going to do this forever. And our children are not, our children are grown, but they’re not interested in taking this business and running it.
“So at some point, we’re going to need to find new partners to transition the business to. And that’s part of the investment too, the payout for the investors is that one day somebody larger comes along and wants [Catoctin Creek] in their portfolio as a shining star.
“So that’s pretty much the exit plan and the goal of the raise is the long-term vision of that, not immediate, but maybe in the five- to seven-year timeframe.”
The PPM will close on 31 December, after which the founders will have the option to extend it for another six months “if we didn’t meet our goals or we think there’s more to be raised”.
Harris says the eventual goal is to “find a good partner who would steward the brand”, but he adds that “there may be a situation where Becky and I continue on as employees in the company” and continue to share Catoctin Creek’s story.
“Brands like ours are built not just upon the gorgeous quality of the liquid, but also the personalities that created them,” he continued. “And so we may do that as travelling showmen for the latter part of our careers, as we step into retirement someday, which seems impossibly far away right now.”
Constellation moves away from spirits
Constellation Brands has been cutting its investments in the spirits sector in recent years to focus on high-end brands.
In August, the firm divested American brandy producer Copper & Kings to Kentucky-based Bourdon Spirits Company in August. It followed the sale of Svedka Vodka to Sazerac in January this year.
The group also exited its investment in New York-based Black Button Distilling, which recently announced job cuts under its new owner.
Furthermore, it sold its minority stake in El Silencio mezcal to IJW Whiskey.
For the three months ending 31 August 2025, Constellation Brands saw wine and spirits sales fall to US$136m following its divestiture of Svedka.
Constellation Brands’ spirits portfolio includes the Casa Noble and Mi Campo Tequila brands, and American whiskeys from High West Distillery and Nelson’s Green Brier.
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