Brown-Forman Enters Single Malt With $416M Deal For BenRiachApril 27, 2016
Brown-Forman has announced an agreement to acquire BenRiach Distillery Company for £285 million ($416m), giving the company a presence in the fast-growing single malt Scotch category. The acquisition is expected to close on or about June 1.
The deal includes The GlenDronach, BenRiach, and Glenglassaugh brands, three malt distilleries, a bottling plant and the company’s headquarters in Edinburgh, Scotland. The BenRiach Distillery Company, which has a workforce of 165 employees including 55 seasonal and casual workers, will operate as a subsidiary of Brown-Forman. BenRiach was founded by a group led by Scotch industry veteran Billy Walker in 2004. Anchor Distilling has been handling the BenRiach brands in the U.S.
Single malt has shown solid growth in the U.S. market in recent years, rising more than 30% since 2011 by volume, with consumers avidly seeking out new expressions. Brown-Forman previously was a minority shareholder of Glenmorangie plc and marketed the Glenmorangie single malt brand in the U.S. and Canada from 1992 to 2005. It sold its interest as part of Glenmorangie plc’s sale to Moet Hennessy in 2005.
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