UK –Diageo, a multinational alcoholic beverages company, has agreed to acquire British gin and vodka maker, Chase Distillery, in an effort to capitalise on the premium spirits category.
Founded in 2008 by William Chase, the Chase Distillery portfolio is made up of seven gins, four vodkas and an elderflower liqueur.
The company says its portfolio is distilled using British-grown potatoes, apples and all-natural botanicals on the Chase Farm in Herefordshire.
Chase Distillery is also focused on sustainability, with the steam energy used to run the distillery produced on site from a biomass boiler powered by prunings from the apple orchard, while its potato waste is used as fertiliser to feed the farm’s cattle.
Commenting on the development, William Chase, founder and chairman of Chase Distillery said: “It’s inspiring to have Diageo invest in Chase Distillery’s future.”
He further noted that the acquisition was a sign of Diageo’s believe in the potential of Chase Distillery’s to bottle spirits and a great milestone to the company’s mission to develop a sustainable distillery in Herefordshire.
“We are thrilled to be bringing such a quintessentially British portfolio of high quality, crafted brands into our family,” said Dayalan Nayager, Managing Director at Diageo Great Britain.
“We are excited about the growth opportunity within the premium plus segment and are very much looking forward to working with the Chase team to build on the portfolio’s considerable potential.”
According to a report by FoodBev, the acquisition, made for an undisclosed sum, is expected to close in early 2021 subject to regulatory clearances.
The Chase Distillery deal follows Diageo’s acquisition of premium brand Aviation gin and its owner Davos Brands for US$610 million.
In a statement, Diageo had explained that the acquisition of Davos Brands supported its participation in the super premium gin segment in the United States.
It also said that the acquisition was “in line with Diageo’s strategy to acquire high growth brands with attractive margins that support premiumisation.”
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