17 Jul 2017 | 08.57 am
Stock Spirits Buys Into Dubliner Irish Whiskey
€18m for 25% stake in Quintessential Brands Ireland Whiskey
17 Jul 2017 | 08.57 am
Stock Spirits Group plc, a producer of premium branded spirits and liqueurs that are principally sold in Central and Eastern Europe, has acquired a 25% equity interest in Quintessential Brands Ireland Whiskey Ltd for a consideration of up to €18.3m.
QBIW, which owns The Dublin Liberties and The Dubliner Irish Whiskey brands, is the Irish whiskey business of Quintessential Brands. These brands comprise a range of ultra-premium through to standard Irish whiskey products which are currently on sale in over 30 countries, with in excess of 32,000 9L cases sold in the year to March 2017.
QBIW is currently building The Dublin Liberties Distillery in the centre of Dublin, which will include a visitor and brand experience centre. Stock Spirits’ investment will be primarily used to complete the construction of the distillery, accelerate advertising and promotional investment in the brands, and to finance working capital and stock maturation. The distillery will take at least one year to complete.
Prior to the investment, QBIW was a 100% owned subsidiary of Quintessential Brands, an independent spirits business which owns, manages, markets and distributes a portfolio of high-quality spirits brands internationally from manufacturing operations in the UK, Ireland and France.
Post the investment, Quintessential Brands will continue to provide blending and bottling services, as well as sales and marketing support; Stock Spirits will be entitled to nominate two of the five directors on the board of QBIW.
Consideration comprises an initial cash payment of €15m for the 25% equity interest, and a deferred cash consideration of up to €3.3m which is payable over a five year period. The deferred consideration will be subject to certain performance conditions.
Stock Spirits CEO Mirek Stachowicz commented: “We are delighted to be partnering with Quintessential Brands in an exciting Irish whiskey business and to be adding these outstanding brands to our portfolio. We see significant potential for the brands globally, including in our core markets of Poland and Czech Republic, and are confident that they will complement our strong market positions in vodka, herbal bitters, brandy and limoncello.”
Quintessential Brands Group co-founder Warren Scott said: “We are a brand-led business and both The Dublin Liberties and The Dubliner Irish Whiskey have developed great traction in more than 30 markets with significant potential for further growth and range expansion in the coming years.”