Campari Buys Forty CreekMarch 12th, 2014
News today that Italy’s Campari Group has bought Canada’s Forty Creek Distillery, should come as no surprise. After decades of marginal decline, Canadian whisky sales have rebounded strongly in recent years. Much of the credit for this must go to Forty Creek’s whisky maker, John K. Hall.
It is more than a decade since Hall began taking his whisky from bar to bar in New Orleans and Texas. At the time Canadian retailers had shown little interest in the upstart Canadian whisky maker. As he pounded the pavement, selling a case here and a case there, Hall effectively became the face of Canadian whisky in the U.S. Happily, despite the sale of his distillery, this will continue.
From the firm base he began building in America, Hall returned to Canada to conquer his home market. Forty Creek is not the largest, but it is now the fastest-growing whisky brand in Canada. Today, Campari, which also owns Wild Turkey bourbon, confirmed Hall’s unshakable faith in Forty Creek by purchasing 100% of the distillery, its brands, and holdings for $185.6 million Canadian. Forty Creek, as the consultants say, was low-hanging fruit, ripe for the picking.
Campari was one of a number of firms that was interested in purchasing the distillery. Hall was looking for a buyer that would keep the Grimsby facility open and ensure that all the employees could keep their jobs. The deal was sealed when Campari committed to those objectives.
When I met Hall in Victoria this past January, he seemed tired. “I just can’t keep this up,” he said of the non-stop pace of appearances at whisky shows and liquor stores across Canada and the U.S. “I want to spend more time with my family. When I’m in my distillery now I spend half my time behind a computer.”
“You need to hire a CEO and get back to tending your stills,” I offered. And I guess, in a way, that is what he has done. Little will change in day-to-day operations at the distillery and Hall will remain as company chairman and whisky maker. With the full strength of Campari’s sales force supporting him, Hall will likely have more time to do what he loves best: make whisky.
“I am very excited about my 2014 Limited Release,” Hall told me recently. “It will be bottled in July, and then after two and a half months of bottle rest I’ll release it.” That’s typical John Hall. Ever the wine maker, he wants to be sure his whisky has time to recover from bottle shock.
Forty Creek is a small distillery. With two pots and one column still, it has yet to reach its annual production capacity of 555,000 cases of whisky, but with the Campari deal, that can’t be far off. Watch for expansion plans in the not-too-distant future as Campari uses its global resources to grow Forty Creek in Canada, and around the world.
Meanwhile, congratulations are due to Canada’s hardest-working and best-known whisky maker, John K. Hall, and the whole Forty Creek family. For that’s what it feels like when you visit the distillery.