Grant sells Irish liqueur brands in £108m deal

William Grant has sold a string of liqueur brands for €129 million (£108m) just months after acquiring them as part a transformational €300m expansion of the family-owned company.

The distiller unveiled the takeover of the spirits and liqueurs arm of Irish group C&C at the end of May. It touted the deal as giving it a major push into Ireland, focusing on Tullamore Dew Irish whiskey.

That core brand will remain with William Grant, but in a surprise move the firm yesterday announced the disposal of the ex-C&C liqueur brands Carolans, Frangelico and Irish Mist to Italian drinks firm Campari. The sale is due to complete on 1 October.

Stella David, chief executive of William Grant, which is the third-largest producer of Scotch after Diageo and Chivas Brothers' owner Pernod Ricard, described the offer from Campari as "very attractive".

She said: "We remain committed to building our business in Ireland and to building the long-term value of Tullamore Dew around the world.

"We were offered a very attractive price from Campari and believe they will be able to develop these brands given their relevant expertise."

The proceeds from the sale will be ploughed into promoting Tullamore - already one of the fastest growing whiskey labels - as well as Grant's other core brands that include single malt Glenfiddich. There is speculation that it may build a distillery at Clonmel.

The group recently announced the setting up of a new global marketing operation in Dublin to oversee non-Scotch brands, including Sailor Jerry rum and Hendrick's Gin.

Yesterday's deal will not involve any job losses and the bottling operations at Grant's Clonmel site will be unaffected after Campari signed a ten-year manufacturing services agreement with the Scots group.

Campari boss Bob Kunze-Concewitz said the firm had acquired a "high-quality and profitable business with upside potential".