Beam Suntory sells Sherry and brandy business for €275mBy Lauren Eads
Beam Suntory has confirmed it is to sell its Jerez-based brandy and Sherry business, including its Harveys and Fundador brands, to the Philippines-based spirits producer Emperador for €275 million.
The company, formed through a $16 billion merger between Suntory and Beam in 2014, announced today that it had entered into a “definitive agreement” to sell its Jerez-based brandy and sherry interests to Emperador Inc, believing they would be “of greater value” to another company.
The agreement includes the Fundador, Harveys, Terry and Tres Cepas brands, as well as its production operations in Jerez and Tomelloso, Spain.
“A recent review of our portfolio of brands and supply chain footprint led us to believe that our Spain-based brandy and Sherry business could be of greater value to another company,” said Steve Fechheimer, Head of Strategy and Corporate Development at Beam Suntory. “Our teams in Jerez and Tomelloso are outstanding, and I am confident that the operations and the brands produced there have a very bright future as part of Emperador Inc.”
These are not the first big brands that Beam Suntory has off-loaded this year, having sold its Louis Royer Cognac business to France’s Terroirs Distillers for €100 million (£74m) earlier this year.
Beam Suntory’s remaining brands include Jim Beam, Maker’s Mark and Knob Creek bourbons, as well as Japanese whiskies Kakubin, Yamazaki, Hakushu and Hibiki. Its Scotch portfolio includes Teacher’s, Laphroaig, and Bowmore, alongside Courvoisier cognac, Sauza tequila, Pinnacle vodka, and Midori liqueur.
Emperador meanwhile bought the Scotch whisky brand Whyte & Mackay from United Spirits (USL) for £430 million ($726 million), last year. Emperador, which is controlled by billionaire Andrew Tan and is part of Alliance Global Group, is known for its Emperador Brandy label, however this acquisition will mark its first foray into the Sherry business.
“We are very excited about adding the iconic brands of Fundador (the Philippines’ premier imported brandy brand), Terry Centenario (Spain’s number one selling brandy), Tres Cepas (number one brandy in Equatorial Guinea) and Harveys (number one selling Sherry wine in the United Kingdom) to the Emperador portfolio,” said Winston Co, president of Emperador.
“We look forward to continuing to invest behind the acquired brands, welcoming the transferring employees to Emperador and engaging with the local community.”
Emperador’s brands include Scotch brands The Dalmore and Jura, Whyte & Mackay and John Barr Blended Scotch Whiskies.