Ohio’s Watershed Distillery has been acquired by New Jersey-based Marussia Beverages USA, the U.S.-arm of Swiss firm Marussia Beverages Group.
With premium spirits on the rise long term, the acquisition illustrates how import companies, larger craft brands and wineries are acquiring mid-size craft distilleries or brands as a way to get in on the game.
Founded by two friends in 2010, the distillery is the number one bourbon and gin producer in Ohio, and was one of the two original post-prohibition distilleries in Columbus. The distillery’s primary focus over the past 13 years has been growing its home market of Ohio, while adding distribution in six other states.
Now, that presence is likely to expand. Adding Watershed Distillery’s bourbons, gins, vodka and specialty spirits will strengthen Marussia’s premium portfolio, according to the firm. The company produces and imports premium spirits, sake, and wines including Hatozaki Whiskies, Mozart Chocolate Liqueurs, Torabhaig Scotch Whiskies, 135° East Japanese Gin, and Akashi Tai Sakes. In 2021, the U.S. division changed its name from Niche Import Co. to Marussia Beverages USA in a bid to strengthen its parent company’s global footprint, which includes 14 distribution companies and 16 production sites worldwide.
“Watershed Distillery embodies the same core values and DNA that are at the heart of Marussia Beverages,” said John Horn, CEO of Marussia Beverages USA. “It starts with family, community, entrepreneurship, a passion for exploration and discovery, and the desire to connect with consumers to deliver high quality, premium brands.”
Greg Lehman, Watershed’s founder, will maintain his role overseeing operations, and production will continue in Columbus. The company currently operates in a 35,000-square-foot space, employing more than 70 people, and is expected to expand in central Ohio.
Since Watershed’s founding, Lehman has been central to pushing new Ohio liquor legislation through his work with the Ohio Distillers Guild, guiding bills that have increased craft distilling production limits and allowed distillers to obtain licenses to open bars and restaurants, and sell their own spirits on site.
Watershed isn’t the only craft brand to merge with a larger company in the last week. Tennessee-based Ole Smoky Distillery agreed to a merger agreement with Tanteo Spirits, an ultra-premium spicy tequila founded in 2007. Ole Smoky claims it is the largest craft distiller in the U.S., offering 25 moonshine flavors and 17 whiskeys distributed nationally and in 20 countries. The combined company will leverage Ole Smoky’s infrastructure and its sales and distribution network to accelerate Tanteo’s growth, according to the company. The move marks Ole Smoky’s entry into tequila, and specifically into the slowly rising flavored tequila segment.
Financial details were not disclosed of either transaction.