Poland’s United Beverages Group has acquired the JJ gin-and-vodka brand from UK-based Halewood Artisanal Spirits.
The financial terms of the deal have not been disclosed.
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In a joint statement, Halewood said the disposal forms part of its ongoing efforts to “refine” its brand portfolio.
The JJ brand sells more than 600,000 nine-litre cases a year.
Under the deal, Halewood will continue to be the “exclusive distributor” for JJ brands in the UK, while United Beverages will oversee exports to international markets.
Halewood CEO Stewart Hainsworth said: “The sale and new distribution agreement for the JJ Brand is another exciting step forward for the Halewood company as part of its artisanal brand strategy.”
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By GlobalDataThe company said it will “continue investing” in its other brands, including Whitley Neill Gin, Dead Man’s Fingers Rum and its “expanding” whisky portfolio.
For United Beverages, the acquisition aligns with its expansion strategy. United Beverages president and CEO William Carey said: “The acquisition of the JJ brand continues the group’s strategy of acquiring leading brands.
“The brand is one of the fastest-growing brands in the UK today and still has large potential for growth in the export area.”
The deal follows a period of operational reshaping at Halewood. In December, the company confirmed it made cuts to its workforce in its last financial year as sales came under pressure.
In the 12 months to 28 June, the UK company’s headcount was slashed by more than 40%.
In a filing with Companies House, Halewood said it had “reacted to inflationary pressures by a material reduction in headcount”.
Halewood added it had also embarked on “further scaling back international expansion projects” in the period.
In the year through June, Halewood saw net turnover decline 11% to £77.4m ($104.6m), attributed to the ending of third-party whisky contracts.
The group also saw sales of Crabbies ginger beer fall amid pressure from US tariffs and an end to distribution in Canada because of low margins.
After the restructuring, Halewood said it wants to see adjusted EBITDA grow and at the same time “generate growth in operating income by focusing on its own artisanal spirits”.
The company saw adjusted EBITDA reach £6.6m in the year ended in June, an improvement from a loss of £7.2m in the previous 12 months.
It booked an operating loss before exceptional items of £3.4m against one of £17.9m the year before.
Halewood reported a net loss of £18.3m against a loss of £22.7m.
In terms of the outlook, the company said it will focus on “driving down operational overheads and improving production efficiency by utilising third-party manufacture”.
