The brands included in the transaction are Wolfschmidt vodka, Calvert (Lord Calvert Canadian, Calvert Extra, and gin), Bellows (blended whiskey, Bourbon, gin, rum, Scotch and vodka), Dark Eyes vodka, Canada House Canadian, and Tempo Triple Sec. According to Beam, the brands, which are distributed in North America, generated 2012 revenues of approximately $30 million (excluding excise taxes) and volumes of approximately 1.8 million cases.
Beam segments its brands into Power Brands, Rising Stars, Local Jewels and Value Creators. The brands being divested to Luxco are among Beam’s Value Creators.
Matt Shattock, president and chief executive officer of Beam said: “Following the premium brand acquisitions we’ve made in the past two years, this move reduces portfolio complexity in economy vodka and Canadian whisky, and reinforces Beam’s focus on developing our Power Brands and Rising Stars, which are our most profitable growth engines.”
Donn Lux, chairman & CEO of Luxco said: “We are thrilled to be adding these brands to our portfolio. Beam has done a great job in establishing them across many markets and categories. We look forward to expanding them further and bolstering our entire portfolio with our distributors.”
The transaction is subject to customary closing conditions and is expected to be completed by the end of January. As part of the transaction, Beam will continue to produce and bottle the brands until at least January 2014.