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Stock Spirits to buy 25% stake in Quintessential Brands Ireland Whiskey

Published 18 July 2017

Stock Spirits has agreed to acquire a 25% interest in the Irish business of Quintessential Brands Group for up to €18.3m in cash.

Quintessential Brands Ireland Whiskey (QBIW) owns The Dublin Liberties and The Dubliner Irish Whiskey brands. Under these two brands, the company sells a range of Irish whiskey products in over 30 countries.

Stock Spirits’ investment in QBIW is in line with its strategy to expand its portfolio by way of investments and acquisitions.

The company said whiskey is the second largest spirits category globally, only behind vodka.

And, within the whiskey category, it claims that the market for Irish whiskey has been growing rapidly in the last decade.

For Stock Spirits, whiskey has been a key product in its native markets including Poland and Czech Republic. The present investment can help the company to capitalise on the growing trend.

QBIW has its manufacturing operations based in the UK, Ireland and France. After the stake acquisition, Quintessential Brands will continue to provide blending and bottling services along with sales and marketing support.

Money obtained from the acquisition will be used to complete the construction of The Dublin Liberties Distillery, to finance working capital and to enhance advertising and promotional investment in the brands.

The investment is expected to bring earnings for Stock Spirits' shareholders in the fourth year from now. Construction of the distillery will take about one year to complete and Irish whiskey takes about three years to mature. Hence, inflow of profits can start only in the fourth year.

Consideration will include an initial payment in cash of up to €15m for the stake and the remaining amount of €3.3m will be a deferred cash payment, payable over five years of time.

Stock Spirits CEO Mirek Stachowicz said: “We have already developed strong whiskey category management capabilities courtesy of our distribution agreements with our agency partners, and see these brands as being highly complementary to that platform.

“We see significant potential for the brands globally, including in our core markets of Poland and Czech Republic, and are confident that they will complement our strong market positions in vodka, herbal bitters, brandy and limoncello. We are hopeful that this will be the start of a long and fruitful working relationship with Quintessential Brands.” 

Image:  Dubliner Irish Whiskey's limited edition 10 Year old single malt whiskey released in April 2016. Photo: Courtesy of Quintessential Brands Group.