Spirits giant Sazerac announced today plans to acquire Southern Champion’s ready-to-drink (RTD) portfolio, including BuzzBallz, the spherical wine-, spirit- and malt-based cocktail brand.
Financial details of the transaction were not disclosed. The deal is pending “customary closing conditions,” including regulatory approvals.
BuzzBallz founder Merrilee Kick will continue to guide the brand as CEO once the deal closes.
Sazerac CEO and president Jake Wenz said in the announcement: “Merrilee and the team at BuzzBallz have created incredible brands and we are both honored and excited to partner together to take them to the next level. Merrilee’s creativity, commitment to quality and drive is inspiring. BuzzBallz is truly one-of-a-kind and we can’t wait to help spread the products to more consumers all over the world.”
Kick added that BuzzBallz has “received many inquiries to acquire the company” since its founding in 2009, but “Sazerac matched our innovative culture and spirit best.”
“They are a partner we can continue to grow with internationally, as well as expand our existing distribution footprint in the USA,” she continued. “We are excited about our future growth opportunities from the synergies we will create together.”
BuzzBallz will join a Sazerac portfolio that includes Buffalo Trace Bourbon, Eagle Rare, Weller, The Last Drop Distillers, Fireball Cinnamon Whisky, Southern Comfort, Wheatley Vodka, Meyers’s Rum, White X Cognac, Sazerac de Forge Cognac and Paddy’s Irish Whiskey.
Along with BuzzBallz, Sazerac will acquire other Southern Champion brands, including Biggies, Uptown Cocktails, Sip Sip Hooray, and Texas Craft, among others.
BuzzBallz was started in 2009 when Kick was still a high school teacher, then studying for her MBA. The more than decade-old company has grown to be a more than $1 billion company with distribution in all 50 states and 27 countries.
Over the last 52 weeks (ending February 24), BuzzBallz dollar sales in NIQ-tracked off-premise channels (total U.S. xAOC + liquor plus + convenience) have increased +45.2%, and volume has increased +42.8%. Dollar sales for BuzzBallz Biggies, the company’s 1.75 liter package, have increased +342% in the period, with nearly as much in dollar sales as the original brand ($14.3 million), while volume has increased +328.9%.
In Circana-tracked channels, BuzzBallz is the No. 9 largest spirits product by dollar sales, nipping at the heels of Jim Beam in the market research firm’s latest weekly report (ending March 10), increasing dollar sales +28.4% year-over-year (YoY) and volume +27.3%. Circana’s Scott Scanlon recently remarked that BuzzBallz could pass Jim Beam if BuzzBallz sees enough of a St. Patrick’s Day boost, with just over $400,000 separating the two brands.
BuzzBallz also introduced malt-based versions of its RTDs last year, helping expand its distribution opportunities, including more placements in c-stores and grocery. The malt-based versions recorded $595,883 in dollar sales in the past 52 weeks in NIQ-tracked off-premise channels (there are no YoY comps yet).
Arlington Capital Advisors represented BuzzBallz and Southern Champion in the sale.
Kick discussed the growth of the BuzzBallz brand during the 2023 Brewbound Live business conference. Watch here.