Texas-based whiskey producer Balcones Distilling has been purchased by Diageo for an undisclosed sum.
The distiller, said to be one of the leading producers of American single malt whiskey in the US, boasts a diverse portfolio of acclaimed super-premium-plus whiskies, including Texas “1” American Single Malt, Lineage American Single Malt, and Baby Blue Corn Whisky.
Balcones Distilling chairman Greg Allen said: “Balcones started with an idea driven by an innovative spirit and passion to create something original and authentic in the heart of Texas.
“Now, we couldn’t be prouder to have created these award-winning American single malt and Texas whiskeys, but also to have helped initiate an exciting new era of whiskey in Texas.
“We are thrilled that Diageo shares our belief in its potential and we look forward to seeing Diageo bring Balcones’ incredible whiskeys to more consumers.”
The super-premium-and-above whiskey segment has seen consistent volume growth in the US in recent years, with a compound annual growth rate (CAGR) of 13.3% from 2016 to 2021, according to IWSR Drinks Market Analysis volume data.
Within that, American single malt whiskey has been a driver of momentum, with 18.2% CAGR over the same period.
Claudia Schubert, president Diageo North America, commented: “We are delighted to welcome Balcones Distilling into Diageo. The Balcones team are true innovators and pioneers in the emerging American single malt and Texas whiskey movements, and their super-premium-plus whiskeys are highly complementary to our whisky portfolio.
“This acquisition is in line with our strategy to acquire high growth brands in fast-growing segments, such as super-premium whisky, and we look forward to working with the Balcones team to support further growth for these world-class whiskies.”
The acquisition has been funded through existing cash resources.
In other acquisition news, this week Campari Group bought a majority stake in Wilderness Trail Distillery. The Aperol owner also purchased a minority stake in Catalyst Spirits.
Read Full Story at source (may require registration)
Author: Georgie Collins