Campari to Buy Grimsby's Forty Creek Distillery

[thistleclub]

Campari to buy Canadian whisky company for $170 million
(Reuters, Mar 12 2014)

Drinks group Campari (CPRI.MI) has agreed to buy Canada’s Forty Creek Distillery (FCD) for 185.6 million Canadian dollars ($170-million), the Italian company said on Wednesday.

Campari, famous for its bitter red aperitif of the same name, said that whisky company FCD will give it the opportunity to grow in the United States, where it expects a revival in sales of brown spirits.

“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 in Canada and positioning us for further growth in our core U.S. market,” Campari Chief Executive Bob Kunze-Concewitz said in a statement.

FCD founder John Hall said: “Introducing customers around the world to my whisky is a dream come true.”

The Italian company said its purchase of FCD, the brand portfolio of which comprises vodka, brandy, rum and liqueurs, as well its core Forty Creek Whisky, valued the Canadian company at 14.5 times its forecast 2014 core earnings (EBITDA).

FCD achieved 34.2 million Canadian dollars in sales in its financial year ending March 2013, Campari said, and is expecting revenue to grow 15.6 per cent to 39.5 million Canadian dollars this year financial year.

Campari, which reports full-year 2013 earnings on Wednesday, said the deal also includes a distillery, manufacturing facilities and a hospitality centre in Canada, where it said FCD’s business would remain.

The all-cash deal is expected to close on June 2.

[mattgrande]

40 Creek makes my favourite rye (the Copperpot), I hope they don't change too much.

Does anyone know if this deal includes Kittling Ridge, or if it's just the distillery?

[matt602]

They better not change anything. I bleed Forty Creek Whisky.

[ScreamingViking]

I really enjoy Forty Creek's whiskies too. If this really is about Campari gaining a bigger foothold in North America I can't imagine they'll mess with a good thing... and maybe we'll even see some production of other spirits here.

[LikeHamilton]

This will allow Campari to bottle their product here. They would ship it in large container tankers and have it bottled in Grimsby. This would save them money of shipping heavy bottles from Italy. One of the rum makers (I believe it is Appleton Rum) does this under the supervision of one of their people brought up to Forty Creek Distillery. Bottling lines are expensive to build and not used very often. Small wineries in Niagara are using a mobile bottling line that is on a tractor trailer that goes to wineries when request. Some of the large Australian wineries are tankering their wine to California where it is bottled for the North American market.

[LikeHamilton]

So I decided to go to Campari’s web site to see what they make besides Campari. And to my surprise they own Appleton Rum. They are the 6 largest beverage company in the world with 50 brands and 15 manufacturing plants. Here is the list of their brands.

SKYY Vodka
SKYY Infusions
SKYY90
Jean Marc XO Vodka
Aperol
Aperol Spritz
Aperol Soda
Campari
Campari Soda
Campari Orange Passion
Biancosarti
Wild Turkey Real Kentucky Straight Bourbon Whiskey
Russell’s Reserve Small Batch Straight Kentucky Bourbon and Rye Whiskey
Glen Grant Single Malt Scotch
Old Smuggler Scotch Whisky
Old Eight Brazilian Whisky with a Scottish soul
Drury's blended Whisky
Gregson's Whisky
Irish Mist Whiskey
Cabo Wabo Tequila
Espolon Tequila
Appleton Estate Rum
Appleton Special Jamaica Rum
Wray and Nephew White Over proof Rum
Coruba Jamaica Rum
Sangster’s Jamaica Rum Cream
Wild Turkey American Honey Liqueur
Carolans Irish Cream
Cynar
Frangelico
Ouzo 12
Sagatiba
X-Rated Fusion Liqueur
Dreher Brandy
Irish Mist Whiskey Honey Liqueur
Zedda Piras
Cinzano Sparkling Wines
Mondoro
Riccadonna
Odessa
Looks like 6 wineries including Liebfraumilch
They also have a line of soft drinks and bottled water.