SPI Acquires Remainder Of Louisiana SpiritsJune 15, 2018
SPI Group has acquired the remaining stake in Louisiana Spirits that it didn’t already own. The price wasn’t disclosed. SPI initially purchased a minority stake in Louisiana Spirits, which produces the Bayou Rum brand, in 2015. It then raised its ownership to a controlling 72.5% share in 2016. SPI’s Stoli Group USA subsidiary has served as exclusive distributor of Bayou Rum in the U.S. market since 2015.
Stoli believes the acquisition effectively puts an end to a lawsuit recently filed by Louisiana Spirits’ founders through their LSBR Holding Company, which formerly held a minority share in Bayou Rum and Louisiana Spirits. The suit accused SPI and Stoli of failing to live up to their contracts with LSBR.
SPI denied those allegations, claiming it “has operated, and indeed continues to operate, with the long-term best interest of Louisiana Spirits as a priority focus.” In December, SPI unveiled plans to invest $6 million in an expansion of Louisiana Spirits’ distillery and tourism facility. Stoli Group’s global president and CEO Hugues Pietrini says his company will continue to invest behind Bayou, with new product ranges and other expansion initiatives in the pipeline. The Bayou portfolio, which retails from $20-$37, currently includes Silver, Spiced, and Select rums and a Satsuma orange-infused liqueur.—Christina JelskiSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.