UNITED STATES – MGP Ingredients, a US-based alcohol distiller and food ingredient producer, has announced the appointment of a new CEO, David Bratcher, effective from January 2024, as the company continues making major investments in the industry.
David Bratcher will take over from David Colo, who will retire from his position as President and CEO of MGPI on December 31.
Before this appointment, Mr. Bratcher served as the President and Chief Operating Officer of Branded Spirits.
Following the merger of Branded Spirits’ parent company, Luxco, Inc., with MGPI in 2021, he worked closely with MGPI’s management team to oversee the overall business and the extensive Branded Spirits portfolio.
Karen Seaberg, board chairman of MGP, said, “Our deliberate succession planning process has enabled us to ensure a seamless transition. The board is confident that David’s leadership will positively impact our employees, customers, and stockholders into the future.”
Mr. Colo joined MGPI as President and COO in late March 2020 as part of a succession plan that also includes Mr. Colo remaining remain with MGPI in an advisory role through April 2024 to facilitate a smooth transition.
MGP Ingredients, Inc. (Nasdaq: MGPI) is a leading producer of premium distilled spirits, branded spirits, and food ingredient solutions.
As one of the largest distillers in the U.S., MGP’s offerings include bourbon and rye whiskeys, gins, and vodkas, with distilleries in Kentucky, Indiana, and Kansas, and bottling operations in Missouri, Ohio, and Northern Ireland.
MGP’s branded spirits portfolio covers a wide spectrum of brands in every segment, including iconic brands from Luxco, which was founded in 1958 by the Lux Family.
Penelope Bourbon Acquisition
The appointment comes after the Greenhat producer acquired Penelope Bourbon, said to be one of the country’s fastest growing whisky brands.
The acquisition extends MGP’s portfolio of premium-plus price tier brands and is expected to be immediately accretive to its Branded Spirits segment gross margin and consolidated earnings per share.
“The acquisition of Penelope Bourbon represents an exciting chapter in our long-term strategy and expands the number of premium-plus price tier brands in our portfolio,” said David, retiring CEO.
Meanwhile, MGP has reported a 5% increase in sales to US$211.6 million with gross profit increasing 24% to $73.4 million, representing 34.7% of sales.
Operating income however decreased 41% to $19.8 million. Net income also decreased 45% to $13.1 million.
MGP attributes the losses to the impairment of assets and other one-time expenses of $18.3 million related to the planned Atchison distillery closure as well as the increase in fair value of contingent consideration of $4.2 million related to the Penelope acquisition.