Exclusive news and research on the wine, spirits and beer business

Exclusive: Terlato And Distell Group Form Spirits Joint Venture For The U.S. Market

November 25, 2015

Terlato Wine Group and South Africa’s Distell Group are merging their U.S. spirits activities into a joint venture, SND has learned.

The deal will create a 50-50 partnership between the two companies that will be on stream by early 2016.

The new venture will be based in the Chicago area and will operate as a division of Terlato Wines. With a sales force of over 20 and a marketing team, the unit will be led by Bill Terlato as its CEO, as well as a still-unnamed COO who will manage operations, sales and marketing.

The Terlato spirits brands currently are grouped into its Artisan Spirits unit, which was formed in 2013 with a portfolio including Nonino amaro and grappa, Marnier XO Cognac, Adelphi Selections Scotch, Langley’s No. 8 Gin, Don Pancho Origenes rum, Riazul Tequila, Heartland Prohibition gin, Tigre Blanc vodka and Tiramisu Liqueur.

Distell, meanwhile, is Africa’s top producer and marketer of spirits, fine wines, ciders and ready-to-drink brands. Its key spirits holdings include Amarula cream liqueur, Bain’s Cape Mountain whisky and Bisquit Cognac, as well as Burn Stewart Distillers, whose Scotch portfolio includes Black Bottle blended Scotch and single malts Bunnahabhain, Tobermory, Ledaig and Deanston.

The new joint venture’s total U.S. spirits volume is currently close to 150,000 cases, with Distell at 120,000 cases and Terlato at 28,500 cases. The forecast is for the venture to reach 460,000 cases by 2020, through a combination of new product rollouts and organic growth.

Among the joint venture’s most scaleable brands is Distell-owned Black Bottle, which Bill Terlato described as “an exceptional product.” On the Terlato side, Nonino has the highest growth potential, Terlato added. Of the venture’s single malt brands, Bunnahabhain is the largest at 15,000 cases, but is allocated and therefore has limited potential for further growth.

Terlato called the deal transformative for his company’s spirits business and predicted further expansion into the category. “In addition to maximizing distribution and sales for our combined portfolio, we’ll be looking for strategic acquisitions,” he added.

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : , , , , , , , , , , , , , , , , , , ,

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.

Previous :  Next :