Heaven Hill to acquire Black Velvet Canadian Whisky
The Kentucky-based company buys brand and distillery from Constellation Brands for $ 266 million
Heaven Hill and Constellation Brands have announced a deal that is to be closed by the end of the year: For around $ 266 million, Black Velvet Canadian Whisky will be sold by Constellation Brands to Heaven Hill Brands.
The deal includes the Black Velvet brand as well as the distillery, warehouses and bottling facilities in the Canadian town of Leithbridge, Alberta. Also included is the portfolio of the other whisky brands that are being produced here, such as MacNaughton and MacMasters. Black Velvet is the second-largest selling Canadian whisky brand, according to a press release of Heaven Hill. Net sales in 2019 of Black Velvet and the other brands included were $ 67 million according to Constellation Brands.
"We are excited to add Black Velvet to our iconic group of brands and look forward to growing this historic brand in the months and years ahead,” Max L. Shapira, President of Heaven Hill Brands, said. “As we continue to build our business based on strategic acquisitions and innovation, Heaven Hill’s commitment to quality continues to steer the positive outlook for our diverse portfolio.”
“We are relentlessly focused on the consumer and building a portfolio of brands consumers love today, while pushing beyond to meet their evolving needs well into the future,” Bill Newlands, Constellation Brands president and CEO, said in a press release. “This decision aligns with our consumer-led premiumization strategy to deliver accelerated growth and shareholder value as we continue to focus our wine and spirits portfolio on higher-end, fast-growing brands.
Image: Heaven Hill Brands