Beam Suntory will make almost US$300m from the brandy and Sherry sale to Emperador

Beam Suntory will make almost US$300m from the brandy and Sherry sale to Emperador

Beam Suntory is to sell its Jerez-based brandy and Sherry business to Philippines-based brandy producer Emperador.

The agreement, announced today, includes the Harveys, Fundador, Terry and Tres Cepas brands. Also part of the purchase are Beam Suntory's production operations in Jerez and Tomelloso, Spain. Emperador, which acquired the Whyte & Mackay Scotch whisky business from United Spirits last year, will pay EUR275m (US$291.4m) for the operations.

Steve Fechheimer, head of strategy & corporate development at Beam Suntory said the decision to offload the brandy and Sherry operations follows a review of the company's portfolio of brands and supply chain footprint. The review led Beam Suntory to believe that its "Spain-based brandy and Sherry business could be of greater value to another company".

Winston Co, president of Emperador Inc added: "We look forward to continuing to invest behind the acquired brands, welcoming the transferring employees to Emperador and engaging with the local community."

The sale marks only a partial exit from the brandy category for Beam Suntory. When contacted by just-drinks, a spokesperson for the group confirmed it would still own two Portuguese brandies, CR&F and 1920.

Earlier this month, Emperador confirmed that it would handle the distribution of Camus Cognac in the UK.