Brown-Forman buys 3 single malt brands
Steve’s breakdown: The scotch brands are BenRiach, The GlenDronach and Glenglassaugh. These will clearly be global accounts and judging by the recent trends, should also be growth accounts. Drop me a note if you need a contact.
LOUISVILLE, KY & EDINBURGH, Scotland: Brown-Forman is set to re-enter the single malt Scotch whisky segment through the purchase of The BenRiach Distillery Co.
The US company, which offloaded the Southern Comfort and Tuaca spirits brands to Sazerac earlier this year for US$543.5m, confirmed this morning that it will spend GBP285m (US$414.5m) on BenRiach’s three distilleries, a bottling plant, offices in Edinburgh and three single malt brands – BenRiach, The GlenDronach and Glenglassaugh. The transaction marks Brown-Forman’s return to single malt after it sold its 10% stake in Glenmorangie in 2004.
“The acquisition of these super premium brands will allow Brown-Forman to re-enter one of our industry’s most exciting and consistent growth segments,” said Brown-Forman CEO Paul Varga. “The GlenDronach, BenRiach, and Glenglassaugh single malt brands are rich in history and we believe they will continue to prosper and grow in our hands.”
The BenRiach Distillery Co has a workforce of 165 employees including 55 seasonal and casual workers. The company acquired GlenDronach in 2008, its Newbridge bottling plant in 2010 and Glenglassaugh in 2013.
The transaction is expected to complete by the start of June, after which the company will operate as a Brown-Forman subsidiary.
Last year, Brown-Forman entered the Irish whiskey sector when it bought Slane Castle Irish Whiskey Ltd for an undisclosed sum.