Constellation Brands has returned another US craft business to its founders, this time with Catoctin Creek Distilling Co leaving the stable.
The group, which divested Florida’s Funky Buddha Brewery to its founders in May, has agreed to sell back the stake it bought in Virginia-based Catoctin Creek six years ago to Scott and Becky Harris. The minority holding, details around which were not disclosed, returns to the Harris’s allowing them to “focus their full attention on craft innovation, new customer experiences and additional product lines”.
“During this … relationship, Constellation Brand Venture’s investment helped Catoctin Creek build substantial improvements in its … distillery, increasing production and warehouse capacity, improving our supply chain efficiency and expanding distribution in the US,” the craft spirits company said.
Earlier this month, Catoctin Creek, which owns the Roundstone Rye American whiskey brand, released Hot Honey Rye to several US markets, representing its first new product in “over half a decade”.
Constellation Brands’ appetite for beer continues to grow, seemingly at the expense of its wine and spirits operations from a performance perspective: In results for the three months to the end of August, reported last week, the +7% sales showing comprised a 12% top-line lift from the US beer division, conflicting with wine and spirits’ combined 11% decline from the quarter.
Why infinite whiskey/whisky onto finite US shelves won’t go – Market Intel
