Diageo PLC (LON:DGE) cheered another addition to its brand portfolio on Monday as the alcoholic drinks giant snapped up the Herefordshire-based premium spirits maker the Chase Distillery.
The FTSE 100 owner of Smirnoff Vodka and Johnnie Walker Whisky said the acquisition is expected to close in early 2021, will add Chase’s products to its already expansive range. One of the distillery’s most famous products, Chase GB Gin, will join the likes of Tanqueray and Gordon’s in Diageo’s portfolio.
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The acquisition of Chase, the price of which was not disclosed, also follows the purchase by Diageo of the Aviation Gin brand, founded by film star Ryan Reynolds, back in August for around £450mln.
Diageo’s forceful move into the gin sector, particularly its artisan segment, comes as the UK continues to cement itself as Europe’s largest gin market, with revenues in the segment estimated at around £2.58bn for 2020, up from £1.01bn in 2015, with an expected compound annual growth rate of 10.4% to 2023.
Shares in Diageo were 0.7% lower at 2,611p in mid-afternoon trading.