MGP Ingredients is poised to strengthen its American whiskey presence yet further, readying the acquisition of five-year-old Bourbon brand Penelope.
The transaction, priced at US$105m, has been conducted through MGP’s Luxco division, which owns a raft of brands including Rebel Yell and Ezra Brooks Bourbons. Positioned as a move to “expand [MGP’s] portfolio of premium-plus price point brands”, the purchase will cost MGP as much as $110.8m based on Penelope’s performance between now and the end of 2025.
Named after founder Michael Paladini’s daughter, Penelope is based in New Jersey and comprises three core whiskies as well as the ‘Toasted Series’. The brand, which is already produced by MGP through its ‘Distilling Solutions’ business arm, is on sale in around 30 US states and exports to four unspecified markets.
MGP has developed an owned-brand strategy in recent years, acquiring Luxco just over two years ago. The Kansas-headquartered group had historically sold spirit to third parties along with wheat proteins and starches.
How American whiskey has come back from the dead – Category Intel
