US: Drinks Americas readies Olifant Vodka purchase
Drinks Americas has lined up the purchase of a majority stake in Netherlands-based Olifant Vodka.
The US-based drinks owner, developer and marketer said yesterday (15 September) that it has executed a conditional letter of intent to acquire Olifant from Dutch distiller J.J. Melchers Ws. Scheidam for US$1.4m. The remaining 10% will be retained by the current president of Olifant USA, Jack McKenzie, who will assume a senior management role with Drinks Americas.
With annual sales volumes in the region of $1.2m, Drinks Americas said that Olifant is priced "well below" that of its Trump Super Premium Vodka, "opening up a new level of customer for Drinks Americas".
Patrick Kenny, Drinks Americas' CEO, said: "We will be adding an additional $1.2m in business immediately. We think that this brand can quickly fit into our icon marketing model. In addition to significantly increasing our top line revenue, we will enjoy additional production efficiencies and increase our ability to compete in the vodka category."
McKenzie added: "(Kenny) and I have worked together before. Both of us know there is a role for our brands with the consumer and we share a vision that we can continue to grow the size and value of the brands at Drinks Americas."
A definitive agreement is expected within the next 30 days, while due diligence is being completed. The companies said that they expect the transaction to close before the end of this year.
As well as the Donald Trump-inspired vodka brand, Drinks Americas also owns Willie Nelson's Old Whiskey River Bourbon and distributes Paul Newman's Own Lightly Sparkling Fruit Juice Drinks and Flavored Waters.
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