This is just the beginning of craft distiller buyouts. Count on it!September 25th, 2010
I have so much rattling around in my brain right now, I’m putting up this bonus weekend post before my evil twin takes over on Monday.
This past year we saw the Anchor Distilling Co. sold to the Griffin Group. Then we also saw Tuthilltown Spirits “Hudson Whiskey” brand sold to William Grant.
This is just the beginning. Count on it!
Make a list of the most reputable craft distillers (both here and abroad) who are putting out a clean product with strong business models, and I willing to bet that most all, if not all, have been approached by larger companies who want to buy them. In fact, I feel quite certain that there will be more announcements of alliances between craft distillers and larger companies in the future.
Why? Craft distillers need the money. They want to make a quality product, but they are also faced with mounting bills and need to put out something to pay off these bills. That’s why you’re seeing a lot of young whiskeys put out on the market–many of them too young!
An infusion of capital will allow them to invest in quality equipment, storage facilities, and barrels. They will be able to hire distillers (and consultants) who know what they’re doing. Moreover, it will allow them to age their product longer so it is fully matured before being put on the market. They will be able to increase production. Plus, the right buyer will get their product into distribution channels, increasing circulation–and sales!
It all makes sense. It’s going to happen. Again and again.
Care to take a guess at who you think will be next?