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Diageo shuts Chase Distillery to ‘future proof’ the brand
Drinks giant Diageo has closed its Chase Distillery site in Herefordshire, shifting production of its gins and vodkas to Fife in Scotland.
Diageo has now completed the move, which was communicated to staff working at the Chase site in June 2024.
Chase products will join the likes of Gordon’s, Tanqueray and Pimm’s which are all produced at the multinational’s single grain Cameronbridge Distillery in Fife.
Diageo’s decision to close the site was made to “future proof” the brand amid “substantial change in the vodka and gin categories”, a spokeswoman for the company has said.
“To future proof Chase, we took the decision to renovate the liquid, revitalise the packaging, and transform the brand supply to drive its efficiency. These developments are designed to create future growth opportunities for the brand.”
Newly filed accounts for the subsidiary at Companies House revealed Diageo’s intention to liquidate Chase Distillery.
Chase director James Edmunds wrote in accounts covering the year ended 30 June 2024: “In the last quarter of the current financial year, the directors initiated a Chase brand redesign programme based on a decision by the Diageo Group.”
All production activities will be transferred to Diageo Scotland Limited, Edmunds said.
Liquidation is expected to be completed by 30 June 2025. “Test productions have already commenced, and the anticipated changes have been communicated to employees,” Edmunds said.
Diageo gave the 17 staff members working at Chase Farm the option to transfer to other parts of the business, or offered redundancy terms. Four staff members have chosen to stay with the business.
UK sales volumes of Chase spirits more than doubled to almost 200,000 litres in the year ended 21 April 2024, according to NIQ data compiled for The Grocer’s Britain’s Biggest Alcohol Brands report.
Chase Distillery turnover grew by £600,000 to £5.3m in the year to 30 June 2024. However, this was below the £11.7m reported in 2020, the year prior to Diageo’s acquisition of Chase.
The company also reported a pre-tax loss of £3.2m compared to a £245,000 profit the year prior.
Edmunds attributed the profitability drop to one-off costs of £3.9m incurred “in relation to asset write downs, stock write offs, redundancy and contractual commitment provision charges” ahead of its liquidation plans.
Diageo acquired the brand from Tyrell’s crisps tycoon William Chase for an undisclosed sum in 2021.
The acquisition added the Chase Original Potato Vodka and gins, including Chase GB Gin, Pink Grapefruit & Pomelo Gin and Rhubarb & Bramley Apple Gin, into the Diageo portfolio.
Dayalan Nayager, managing director, Diageo Great Britain, said at the time of the acquisition: “We are delighted to welcome Chase Distillery and its quintessentially British portfolio of high quality, crafted brands to Diageo. We are very much looking forward to working with the Chase team to build on the portfolio’s considerable potential.”
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