FDBusiness.com

Campari Enters Canadian Whisky Category With €120.5 Million Acquisition

 Breaking News
  • Royal A-Ware and Glanbia Ireland to Build New €140 Million Continental Cheese Facility Royal A-ware, a leading global cheese and dairy producer in The Netherlands, and Glanbia Ireland, Ireland’s largest dairy processor, plan to enter a strategic partnership that proposes to build a new continental cheese manufacturing facility in Belview, County Kilkenny, Ireland. It is proposed that a total of €140 million will be invested in this best-in-class [...]...
  • Pladis Appoints Global CEO Pladis, one of the world’s leading snacking companies, has appointed A Salman Amin as global CEO. He will take over the leadership officially in February. With a strong reputation in the food and drink sector, Salman Amin takes up the role after a highly successful international career spanning 30 years and three continents. Most recently, he [...]...
  • ADM Adds New Line of Specialty Tapioca Starches For the EMEA Region Archer Daniels Midland Company has announced a long term partnership with General Starch Limited (GSL), a leading tapioca starch producer located in Thailand. ADM will have exclusive distribution rights of the GSL modified tapioca starch products in the majority of the European countries, as well as in the Middle East and Africa. This range of [...]...
  • Louis Dreyfus Company to Exit Dairy Louis Dreyfus Company, a leading international merchant and processor of agricultural goods, has announced its decision to exit its dairy business by mid-2019. The move is in line with the company’s strategy over the past three years to exit non-core areas and refocus on its core businesses, including investments in origination markets and expansion along [...]...
  • Lucozade Ribena Suntory to Invest £13 Million in UK Factory Japan-based Suntory Beverage & Food is investing £13 million in its UK-based subsidiary Lucozade Ribena Suntory to install a new, high-speed bottle filler at its factory in Coleford, Gloucestershire. The new filler will produce 1.3 million bottles a day and will be instrumental in increasing productivity and efficiency at the Lucozade Ribena Suntory factory. The investment [...]...

Campari Enters Canadian Whisky Category With €120.5 Million Acquisition

Campari Enters Canadian Whisky Category With €120.5 Million Acquisition
March 13
14:36 2014

Italian drinks group Gruppo Campari has agreed to acquire Forty Creek Distillery, a leading independently owned spirits company in Canada. This transaction marks the Campari’s first move into the growing and attractive Canadian whisky category with high-end premium products.

The total purchase price for 100% of FCD is C$185.6 million (€120.5 million) on a cash free/debt free basis. This corresponds to an EBITDA multiple of 14.5x.

With its flagship brand Forty Creek Whisky, FCD is the fastest growing player in the Canadian whisky category inCanada. Moreover, it is well positioned in the key US market to capitalize on the high potential offered by the Canadian whisky category.

Bob Kunze-Concewitz, chief executive of Gruppo Campari, says: “Via the entry to the large and growing Canadian whisky segment this acquisition further increases our exposure to the highly attractive brown spirits category whilst continuing to enhance our premium portfolio. Moreover, the addition of FCD will enable us to further build our critical mass in key North American markets, providing us with a strong market position inCanadaand positioning us for further growth in our core US market. At the same time, our international route to market will also enable the Forty Creek whisky brand to grow faster out of its core North American market. Lastly, through this acquisition we will also be able to internalise key activities in the Canadian market.’

The acquired business includes the full portfolio of FCD including stocks, the distillery and manufacturing facilities and a Hospitality Center located in Grimsby, Ontario.

FCD brand portfolio includes whisky, vodka, brandy, rum and liqueurs, with Forty Creek Whisky as its core brand. The Forty Creek whisky family includes Barrel Select, Copper Pot Reserve, Forty Creek Cream Whisky and offers high-end, limited releases including Forty Creek Confederation Oak, Double Barrel and an annual special John K. Hall Reserve release. Forty Creek whiskies won 3-Time Canadian Whisky of the Year champion at the Canadian Whisky Awards (2010-12) and recently captured five gold medals as Best Tasting Whiskies at the Beverage Testing Institute competition in Chicago (2014).

In fiscal year ending 31 March 2013, the acquired business achieved total net sales of C$34.2 million, of which Forty Creek Whisky represents around 62%. In fiscal year ending 31 March 2014, the acquired business is expecting to achieve total net sales of C$ 39.5 million, showing an increase of +15.6% compared to the previous year.

The transaction is expected to close on 2 June 2014. The consideration will be fully paid in cash.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements