De Kuyper Royal Distillers has confirmed to Global Drinks Intel its intention to run its now-two-strong peach liqueur portfolio as separate entities, although a combining of the pair has not been ruled out.
Earlier today, the Netherlands-based cocktail specialist announced the acquisition of Archers Peach Schnapps from Diageo. The liqueur, which was launched in 1986, will join De Kuyper’s Peachtree, which predates Archers by two years.
Speaking exclusively to Global Drinks Intel, CEO Mark Witte explained the transaction came about after the company looked to expand Peachtree’s geographical availability. “Worldwide, Peachtree is the leading brand,” Witte said. “We’ve made attempts in the last couple of years to enter the UK market: We’re successful with Peachtree in a number of countries and see the UK as a growth opportunity. But, we bumped into the enormously strong presence of Archers. We came to the conclusion that it was tough to compete, so we approached Diageo to see if we could acquire the brand.”
The UK accounts for around 80% of Archer’s total volumes, which stand at around 187,500 nine-litre cases per year, according to Witte. Peachtree, meanwhile, has annual volumes of about 600,000 cases with Japan and South Korea as its biggest markets.
Asked whether De Kuyper would look to retire one of the brands, Witte said: “For the moment, we plan to keep them separate: Where Peachtree is strong Archers’ isn’t, and vice versa. We have no conflicting markets.
“In the longer term, we’ll see what the best way forward is – Can they sit alongside each other? Can we play in different markets with different brands? Or, is it better to join them? For now, we’ll build on their strengths where they’re strong.”
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