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2021 sees spate of new drinks industry acquisitions
15 March 2021 By db staff
Another day, another deal. Since Christmas the big drinks companies have been adding to their portfolios and reshaping their businesses at a hectic pace.
An onlooker would easily conclude that the industry believes it is heading for a new period of substantial growth, with none of the major participants wanting to miss out.
First off the mark in early January was Constellation Brands. The US$810m sale (with possible add ons) of its sub $11 commodity wines portfolio to Gallo had been long negotiated and needed revising several times to meet US Federal trade concerns, but immediately the ink was on the contract, Constellation reinforced its balance sheet through early redemption of $500m debts.
The Drinks Business
12 March 2021 By Lucy Shaw
Keen for a slice of the seltzer action, drinks giant Diageo has acquired Texas-based Far West Spirits, maker of the Lone River Ranch Water hard seltzer brand.
As reported by Forbes, the terms of the deal were not revealed, but Lone River’s founder, Katie Beal Brown, has retained a minority stake in the company. “We are excited to bring this vibrant young hard seltzer brand into our growing ready-to-drink portfolio.
Lone River Ranch Water’s founder, Katie Beal Brown
“Lone River captures the magic of Americans’ love for agave flavoured beverages combined with their desire for light, convenient refreshment,” said Debra Crew, president of Diageo North America.
Dive Brief:
Diageo has acquired Far West Spirits LLC, which owns hard seltzer brand Lone River Ranch Water, according to a press release. Katie Beal Brown, who founded Lone River in 2019, will retain a minority interest and continue to lead it as CEO of the brand.
The brand draws its inspiration from the Texan Ranch Water cocktail, which is a tequila drink made with lime juice and sparkling water. Lone River incorporates West Texas-inspired ingredients like agave and lime juice in its three flavor offerings: Original, Spicy and Rio Red Grapefruit.
Diageo’s latest acquisition is part of its current M&A strategy, which involves adding more premium brands to its portfolio as it sees consumers seeking quality over quantity.
Diageo buys Lone River hard seltzer brand 9th March, 2021 by Nicola Carruthers
Smirnoff owner Diageo is expanding its presence in the hard seltzer market with the acquisition of Far West Spirits, producer of the Lone River Ranch Water brand.
Each Lone River Ranch Water hard seltzer can contains 80 calories and has an ABV of 4%
Founded in 2019 by Texas local Katie Beal Brown, Lone River is inspired by the Ranch water cocktail – a drink enjoyed by Brown’s family for generations.
The Lone River hard seltzer brand has been influenced by the ‘spirit of west Texas and its sense of adventure’.