Campari Group has reached an agreement to sell Carolans Irish Cream and Irish Mist Whiskey to Heaven Hill Brands for $165 million (€141.7 million).
The deal includes trademarks, as well as inventory and production assets. After closing the transaction, expected on 1 August 2017, Campari Group will continue to distribute the Carolans and Irish Mist brands in the international markets outside the US.
"With this transaction, we continue to streamline our non-strategic portfolio and further increase our focus on our priority spirit brands, particularly in our largest and core US market," said Bob Kunze-Concewitz, CEO of Campari Group.
"Moreover, thanks to this disposal, we can further accelerate in the reduction of our financial indebtedness. Since the beginning of 2016 we have divested non-strategic assets for a total value of approximately € 260 million."
In the fiscal year ending 31 December 2016, Carolans and Irish Mist achieved total net sales of €34 million, representing around 2% of Campari Group’s net sales in 2016. The US is the brands’ core market, accounting for 70% of the 2016 net sales.
Carolans is the second-largest selling Irish cream whiskey liqueur world-wide and is produced from local ingredients including fresh cream, honey and Irish whiskey. Irish Mist Liqueur, the first liqueur to be produced in Ireland, is a blend of Irish whiskey, honey and natural aromatic spices.
Heaven Hill Brands is America’s largest independent family-owned and operated distilled spirits company. It is the sixth-largest supplier in the US.
© 2017 European Supermarket Magazine – Article by Branislav Pekic.
