Dutch spirits producer Lucas Bols has acquired Nuvo Sparkling Liqueur from the U.S.-based London Group for $5.7 million.
The French sparkling liqueur, made with vodka, sparkling wine and a blend of fruit nectar, has been managed by Lucas Bols with a focus on the U.S. markets and select markets in Latin America since 2018.
The acquisition of the Nuvo brand fits “well in the growing aperitif moment of consumption, and with its super-premium positioning, it contributes to the premiumization of our portfolio,” said the company in a statement. The sparkling liqueur is typically consumed chilled on the rocks or mixed with tequila, vodka or champagne. Since the Aperol spritz became 2017’s drink of the summer— due to a marketing push by Campari— aperitif sales in the U.S. have grown by 20 percent, according to IWSR Drinks Market Analysis.
In 2007, Diageo made a minority investment to launch Nuvo with Raphael Yakoby, a New York entrepreneur who previously developed the Hpnotiq brand. In 2010, it increased its ownership interest in London Group, the joint venture that owns Nuvo, but sold it back in 2013.
The pink bottle earned a brief reputation as the Hip-Hop drink of the moment, thanks to endorsements from artists like Nicki Manaji and T-Pain. Yakoby also founded blue liqueur brand Hypnotiq in 2001, a liqueur made from vodka, cognac and juices, which he sold to Heaven Hill Distilleries for $50 million.
In 2017, Lucas Bols entered into a strategic partnership with the London Group for Nuvo which included a put-and-call option. The put option, which gives the holder the right to sell a stock, was exercised by the London Group earlier this month. During the partnership, an annual commission of 60% of contribution after advertising and promotion expenses was paid to the London Group.
By acquiring the brand, the commission payment is no longer required, improving the profitability of the Nuvo brand for the spirits producer. The $5.7 million was determined based on the financial performance of the previous fiscal year.
Founded in 1575, Lucas Bols has aimed to keep up its relevance in the spirits world with acquisitions made over the past few years. Fluère joins a portfolio of over 20 premium plus brands, including Tequila Partida, which was acquired in a $10 million deal last year. Lucas Bols also owns passion fruit liqueur Passoã, following Rémy Cointreau’s exit in 2020. The company kicked off the year with the $1.05 million acquisition of Fluère, a premium alcohol-free spirits brand from the Netherlands.