The purchase of Far West Spirits LLC will be funded from cash reserves, but the sum is currently undisclosed.
Diageo wrapped up a deal to purchase craft spirits producer Chase Distillery last week, and it recently paid $610 million to buy Aviation Gin and several sister brands.
Lone River was founded in 2019 by a Texas native called Katie Beal Brown, who will retain a minority interest and continue to serve as chief executive of Far West Spirits after it becomes a Diageo subsidiary.
She said: “We started Lone River with the dream of giving people a taste of Far West Texas. We are so grateful for the diverse set of communities that have embraced our brand, extending far beyond our small place on the map. We found in Diageo a world-class partner who believes in our vision to bring the spirit of Far West Texas to as many as we can.”
Debra Crew, president of Diageo North America, added: “We are excited to bring this vibrant young hard seltzer brand into our growing ready-to-drink portfolio. Lone River captures the magic of Americans’ love for agave flavoured beverages combined with their desire for light, convenient refreshment.
“This acquisition is very much in keeping with our strategy to acquire high growth brands in fast growing categories and we look forward to working with Katie and her team to drive Lone River’s continued momentum.”
