Campari to acquire US craft distillery Wilderness Trail Distillery
Campari Group, an Italian beverages company, has agreed to acquire an initial 70% interest of the outstanding capital of Wilderness Trail Distillery, located in Danville, Kentucky, for $420 million (€420 million) based on the distillery value of $600 million (€600 million).
Established in 2012, the craft distillery launched two proprietary Wilderness Trail expressions — Wilderness Trail Bourbon and Wilderness Trail Rye Whiskey in 2018.
Based on the financial metrics as of 31 December 2021, Wilderness Trail Distillery recorded overall net sales of $40.8 million, including net sales from Wilderness Trail Distillery bourbon and rye brand of $7.2 million.
Bob Kunze-Concewitz — Campari Group CEO said: “By adding the fast-growing super premium Wilderness Trail brand we further expand and premiumise our bourbon offering, priming it to become Campari Group’s second major leg after the aperitif portfolio.
“Moreover, we accelerate our premiumisation journey, further enriching our RARE portfolio, the division aimed to unlock and accelerate the growth potential of a select range of high-end individual expressions in our core premium spirits markets.
“In addition, we have the opportunity to significantly expand our production capacity and ageing inventory to satisfy the future growth of our premium bourbons, such as the high potential Whiskey Barons range, currently capped due to capacity constraints.”
Campari Group to acquire US craft distillery Wilderness Trail Distillery. Photo courtesy of Davide Campari-Milano N.V.
The acquired craft distillery business is likely to generate a total sale of around $57 million, an increase of around 39% as against the previous year, for the fiscal year ending on 31 December 2022.
Subject to a call/put option, Campari Group will acquire the remaining 30% of the outstanding capital of Wilderness Trail Distillery in 2031.
Shane Baker and Dr. Pat Heist — Wilderness Trail Distillery Co-Founders said: “We are thrilled about our partnership with Campari Group. Premium bourbon and rye whiskies and state-of-the art production facilities coupled with worldwide distribution, first class marketing and expertise across multiple spirit categories provide the perfect foundation for the continued success of the Wilderness Trail brand and ensure it will be enjoyed around the world for years to come.
“This is a win-win situation for both parties and we are very proud of this partnership and what we can achieve together with our shared vision.”
Each company will continue to operate independently till the closure of the transaction.
Subject to customary closing conditions, the transaction is anticipated to close before the end of the 2022 calendar year.
In 2009, Campari Group acquired Wild Turkey brand and distillery to foray into bourbon segment.