Sazerac Co has undertaken another foray into the vodka category, this time in the UK, acquiring the Au Vodka business for an undisclosed sum.
Almost two years after buying the Svedka vodka mark from Constellation Brands, serial acquirer Sazerac announced today (17 August) that it has “entered into a binding agreement” to purchase Au. While specifying in its statement that the “terms of the transaction will not be disclosed”, a report by Sky News over the weekend cited “drinks industry executives not directly involved in the negotiations” alongside the claim of a GBP500m (US$676.6m) valuation.
“Sazerac works continuously to grow its business by investing in brands and building out its portfolio globally to connect with consumers,” Sazerac said. “The UK is an important market for Sazerac, and this opportunity enables the company to deepen its presence in the UK.
“The transaction is subject to customary completion conditions and completion is anticipated within weeks.”
Founded by two Welsh schoolfriends in 2015, Au has grown markedly over the last decade thanks as much to its distinctive gold bottle as to the company’s heavy use of social media. Among Au’s partnerships were a tie-up with Jake Paul in which the US influencer-turned professional boxer was paid $250,000 to be tattooed with a bottle of the brand on his arm.
Speaking exclusively to Global Drinks Intel in 2023, co-founder Charlie Morgan said he was more interested in growing Au than selling the business. “The big thing for us is that Wales has never had a brand worth over $1bn,” he said. “That’s something Au has the power to do.
“What’s actually more fulfilling, what’s more powerful, is being part of a big business. Enjoying the journey is more valuable than the money that you would spin off.”
