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Diageo acquires super-premium Texas whiskey producer Balcones Distilling
Diageo has announced the purchase of the super-premium, Texas-based whiskey producer Balcones Distilling for an undisclosed sum.
Alc-bev giant Diageo revealed news of the acquisition on Wednesday in a press release. Balcones Distilling was established in 2008 and has earned a reputation as one of America’s leading producers of single malt whiskey.
The Balcones Distilling portfolio boasts an array of super-premium-and-above expressions including Texas “1” American Single Malt, Lineage American Single Malt, and Baby Blue Corn Whisky.
Diageo used existing cash resources to fund the deal, per a press release, and said the rapid expansion of the whiskey category was the motivation behind its acquisition of Balcones Distilling,
Balcones Distilling chairman Greg Allen commented: “Balcones started with an idea driven by an innovative spirit and passion to create something original and authentic in the heart of Texas.
“Now, we couldn’t be prouder to have created these award-winning American single malt and Texas whiskeys, but also to have helped initiate an exciting new era of whiskey in Texas.
“We are thrilled that Diageo shares our belief in its potential and we look forward to seeing Diageo bring Balcones’ incredible whiskeys to more consumers.”
The super-premium-and-above whiskey segment has seen consistent volume growth in the US, with a compound annual growth rate (CAGR) of 13.3% from 2016 to 2021, according to IWSR Drinks Market Analysis volume data cited by our sister publication, The Spirits Business.
Claudia Schubert, president Diageo North America, commented: “We are delighted to welcome Balcones Distilling into Diageo. The Balcones team are true innovators and pioneers in the emerging American single malt and Texas whiskey movements, and their super-premium-plus whiskeys are highly complementary to our whisky portfolio.
“This acquisition is in line with our strategy to acquire high growth brands in fast-growing segments, such as super-premium whisky, and we look forward to working with the Balcones team to support further growth for these world-class whiskies.”
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