Spirits giant Diageo has agreed to sell Peach Schnapps brand, Archers, to De Kuyper Royal Distillers for an undisclosed sum.
The Guinness maker added that the transaction would not have a material impact on its earning per share (EPS).
As part of the deal, Diageo has agreed on a 24-month manufacturing supply agreement with De Kuyper Royal Distillers.
John Kennedy, Diageo president, Europe, commented, “We are committed to creating value for all our stakeholders through delivering consistent and efficient growth, including actively shaping our portfolio towards opportunities that will maximise growth over the long-term.
“We take a disciplined approach to capital allocation and this announcement continues our track-record of active portfolio management.”
De Kuyper Royal Distillers
De Kuyper Royal Distillers is a privately held Dutch company that manufactures and markets distilled spirits and liqueurs.
The acquisition complements De Kuyper’s premium cocktail liqueurs portfolio and consolidates its position in the peach liqueurs category.
Mark de Witte, CEO of De Kuyper, added, “We want to own the peach category. With Peachtree we do so in a number of important cocktail markets, but in UK the peach category is historically owned by Archers.
“We had the choice to keep competing with Archers or to try to acquire Archers and add the brand to our premium liqueur portfolio. We decided to do the latter."
Archers Peach Schnapps
Archers Peach Schnapps is a subtle sweet liqueur with the full flavours of fresh peach and comes in an elegant white frosted bottle.
The liqueur, launched in 1986, became one of the fastest growing drink brands in the UK market and founded a whole new category, De Kuyper noted.
Archers is renowned in the UK for consumption at home and in bars and restaurants and is an essential in many classic cocktails.
© 2022 European Supermarket Magazine – your source for the latest drinks news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.