US-based Hotaling & Co. is to wind down operations at its Pier 50 distillery in San Francisco to focus on its imports business.
A statement from the spirits group’s executive team said the move came “following a comprehensive review of our long-term growth priorities and capital allocation”.
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The closure allows Hotaling “to sharpen our focus on our core strengths as a builder and importer of world-class fine spirits brands and to align resources around the areas where we are best positioned to drive sustainable growth”.
“This is a proactive strategic decision designed to strengthen the business for the future,” it added.
Hotaling’s spirits brands Junipero gin and Old Potrero whiskey will still be sold by the business and are “important parts” of its portfolio but will be produced by local “partners”.
“We will continue to sell and support both brands”, the company said. “Supply continuity remains a priority. We have sufficient bulk and bottled inventory in place and will continue working with trusted Bay Area production partners to ensure consistent quality and seamless availability in the market.”
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By GlobalDataJust Drinks has asked the company to confirm which partners it plans to work with to produce and bottle Junipero and Old Potrero.
The group said there would be “no changes” to its distribution relationships or go-to-market strategy as a result of the distillery wind-down.
Hotaling & Co. started using the Pier 50 location in 2021, according to its website.
The group said it was “executing a structured wind-down plan for the facility and evaluating options for the space and distillery assets”.
It added: “We are open to discussions with interested parties regarding the lease and/or equipment as part of a responsible transition process.”
Just Drinks has also asked Hotaling how many jobs are at risk of being impacted by the move.
Hotaling & Co.’s import and distribution portfolio includes Writer’s Tears Irish whiskey, Nikka whiskey and gin and Convite mezcal.
The company, previously known as Anchor Distilling Co., changed its name in 2018 following the sale of its sister beer business Anchor Brewing Company to Sapporo Holdings.
