Distell boosts US spirits reach with Terlato

South African-based wine and spirits producer Distell has signed a deal with the Terlato Wine Group that will see both companies’ spirits interests in the US merge to form Terlato Artisan Spirits.

Steven Nathan, managing director of Distell International

The newly founded company will operate as an independent commercial division within the Terlato Wine Group – a US based wine distributor – and will begin trading from February 2016 serving spirits markets across the USA from its base in Illinois, Chicago.

Owned equally by the two parties, Terlato Artisan Spirits will be led by Terlato CEO, William Terlato, in the interim, until a CEO for the spirits division is appointed. He said the deal marked a “transformation of his company’s spirits business and the evolution of its position in the spirits industry”.

Terlato Artisan Spirits already represents a selection of specialty spirits including Adelphi Scotch, Marnier Cognac, Langley’s London No 8 Gin, Riazul Blue Agave Tequila, Tigre Blanc Vodka, Don Pancho Origenes Rum, Tiramisu Liqueur and Nonino’s Amaro and grappa range. Distell brands involved in the deal include single malts from its Scotch whisky portfolio Bunnahabhain, Tobermory, Ledaig and Deanston, as well as blended Scotch Black Blottle, Cognac brand Bisquit, and the South African-born brands Amarula and Bain’s Cape Mountain Whisky.

The deal will also see Distell build on growing interest in South African wine in the US, with the Terlato Wine Group set to import four of its key wine brands – Nederburg, Durbanville Hills, Plaisir de Merle and Two Oceans – as part of the deal.

“We’ve been a big believer in South African wines for years”, said Terlato. “There is major untapped marketplace potential for high-quality South African wines, and we’re looking forward to working with our partners at Distell to bring these exceptional wines to more USA consumers.”

Steven Nathan, managing director of Distell International, said the move would set them up for long-term growth in the USA.

“We are very excited by the development and believe that the new operation establishes us as an important and relevant USA player in the artisan spirits business and presents us with a great opportunity to grow”, he said.

Owned and operated by the Terlato family for four generations, the Terlato Wine Group’s portfolio includes more than 70 wines including Canada’s Peller Estates, Chile’s Lapostolle and from France Belleruche by M. Chapoutier, Champagne Duval-Leroy, Chapoutier, Château de Sancerre, Château Timberlay, Domaine Ramonet and Château de Meursault.