Campari Sells Carolans And Irish Mist To Heaven Hill Brands
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 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 in the world, produced from local ingredients including fresh cream, honey and Irish whiskey. Irish Mist, 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 – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.