With American whiskey on the rise, a major rye distiller was swooped up by an Italian spirits group, while veteran and new players in spirits made bets on U.K. brands finding success across the pond. We recap another busy week in spirits M&A.
Owner of Disaronno Acquires Sagamore Spirit
Italy’s Illva Saronno Holding S.p.A. has taken a majority stake in rye whiskey distillery Sagamore Spirit, the companies announced Thursday, adding a second label to its growing whiskey portfolio.
Sagamore Spirit is a well-regarded rye brand, helping reignite interest in Maryland style rye which has led to over 20 distilleries opening in the last decade. Sagamore recently announced a partnership with the Baltimore Ravens, and has been expanding its canned cocktail line launched in 2021. The distillery is owned by Sagamore Ventures, the privately-held investment company that serves as the family office of Under Armour executive chairman and brand chief Kevin Plank.
“We are thrilled to announce this transaction, which supports our portfolio strategy to acquire high growth, attractive margin brands, and in this case, broaden our offering into the premium American whiskey segment,” said Aldino Marzorati, CEO of Illva Saronno Holding S.p.A. “We have built a strong presence with Disaronno International LLC in the US market, and this opportunity allows us to strengthen our portfolio with a company and products that we fully believe in.”
In July, the Illva Saronno Group appointed Marco Ferrari as CEO effective October 1. Ferrari previously worked for Stoli Group, Bacardi, Fratelli Branca, and recently as CEO for Italian spirits company Gruppo Montenegro.
In addition to its existing whiskey brand, The Busker Irish Whiskey, Sagamore joins four other brands in the Saronno spirits portfolio: Disaronno, Tia Maria liqueur and amaro Rabarbaro Zucca.
American whiskey acquisitions have made headlines in recent years as sales are on the rise: up 10.5% totalling $5.1 billion in 2022. The category has also been pathway into the U.S. for Italy’s leading spirit group, Campari, which could be looking at another acquisition soon.
Terms of the deal were not disclosed.
William Grant & Sons Buys High End Gin Silent Pool
Hendrick’s owner William Grant & Sons is bringing in U.K-based Silent Pool to complement its gin portfolio. Terms of the deal were not disclosed.
Silent Pool is known for its ultra-premium gin, which has carved out a footprint in the U.K. market. Production will remain at Silent Pool Distillers, and William Grant & Sons will act as the brand’s global supply chain and distribution partner, “helping to expand the brand’s presence across Europe, North America and Asia-Pacific”.
The brand, founded by Ian McCulloch and James Shelbourne in 2014, is sold in more than 30 countries.
Gin has been on the decline in the U.S., but like other spirits categories, premium and above segments have been fast-growing: from 2020 to 2021 volume was down nearly 2% for the total category, but up by 122% for the super premium segment, according to the Distilled Spirits Council of the U.S.
MadaLuxe Group Acquires Majority of Tequila Enemigo
MadaLuxe Group, a luxury fashion distributor, is moving into the spirits business with a tequila that’s also made a reputation in the U.K. by targeting its most upscale on-premise establishments.
The group announced Thursday that it acquired a majority of Tequila Enemigo, a brand launched in 2017 by childhood friends CEO Robin Clough and managing director Max Davies-Gilbert, as well as Sebastian Gonzalez. Tequila Enemigo entered the U.S. market in 2018 and has expanded since into nationwide distribution.
Enemigo has positioned itself as a top-shelf tequila, launching with a cristalino and an extra añejo, two expressions that typically sit at the top of the price spectrum, which is driving the category. The company concluded a series A investment round in 2018 which valued the company at $5 million.
In the U.S., Emenigo has built its luxury brand around partnerships with companies like Latitude 33 Aviation, a California-based private jet charter.
The acquisition, the first by MadaLuxe Spirits, marks the luxury platform’s expansion into the premium spirits category.
“We’re expanding our portfolio beyond luxury fashion into other luxury goods to strategically diversify our portfolio and tap into new markets,” said Adam Freede, co-founder and CEO of MadaLuxe Group.
The Tequila Enemigo founding team will retain a significant minority stake in the brand and continue to run all day-to-day operations as well as serve as core members of the MadaLuxe Spirits executive team.
“Our operations infrastructure is known for being turnkey, which means it’s adaptable and efficient,” Freede said. “We have successfully entered various luxury product categories with minimal changes to our existing processes and headcount.”
The company will employ a balanced approach to distribution, leveraging self-distribution when feasible to “significantly enhance” its profit margins, while building on partnerships with trusted distributors in key markets. Enemigo launched in Mexico and Guatemala this year, and plans to expand into multiple new European and Middle Eastern markets by the end of this year.
MadaLuxe is a family-run, New York and Los Angeles-based company that distributes fashion goods to off-pricers, luxury watches to regular-priced retailers and operates its own off-price stores and websites. Founded by the Sholl-Freede Family in 1990, its venture capital arm is an early-stage investor in companies with “powerful, innovative technologies that have the potential to disrupt categories and markets,” according to the company.
Other companies in its portfolio include: e-commerce tool PSYKHE AI, circular fashion platform Reflaunt and CodeBox.
Other notable investment news this week:
- Bacardi Limited jumped fully into the mezcal game and acquired Ilegal Mezcal.
- Spirits-focused private equity group InvestBev has found its next partner, pouring $1 million into Ciara-backed Ten to One Rum.
- International Beverage, the global arm of Bangkok-based Thai Beverage, has been on an acquisition spree this month. The company announced the acquisition of New Zealand’s Cardrona Distillery this week, followed by last week’s purchase of Larsen Cognac from Anora for $58 million.
- Florida-based Splash Beverage Group, which includes Pulpoloco sangrias and SALT Tequila in its portfolio, has signed a letter of intent to acquire Western Son Vodka. The Texas vodka brand was founded in 2011 and has sold 309,000 9-liter cases over the past year, but the production and distribution campus spanning more than 150,000 square feet might be the biggest catch for Splash. The new facility will establish a centralized production and distribution hub for Splash’s existing brands in addition to any future acquisitions.