Bushmills, the Co Antrim-based whiskey business, has been sold by current owner Diageo to Mexico’s Jose Cuervo. The deal sees Diageo acquire 100% ownership of a fast-growing tequila brand, Don Julio.
Widely acknowledged as the oldest licensed distillery in the world, Bushmills has changed ownership more than once in recent decades.
It was acquired by Irish Distillers in 1972, as part of its consolidation of Irish whiskeys. This business was in turn bought out in 1988 by French-based multinational Pernod Ricard.
It has invested hugely in developing what is now a globally successful Jameson brand. In 2005, Diageo bought the Bushmills brand and it was expected that its global reach and investment would project the business forward. Recent years have indeed seen considerable investment in the business, although it remains a minnow relative to the explosive growth of Jameson.
Growing at a reported 7% per year, Bushmills sells approximately 0.8m nine-litre cases per year, while Jameson is heading for 5m cases per year.
The top Scotch whiskey owned by Diageo, Johnnie Walker, sells 18.9m cases per year.
This week, Diageo decided to walk away from the fast-growing Irish whiskey category, trading the operation for a fast-growing tequila brand, Don Julio.
Given the pace of growth in the Irish whiskey category, some analysts expressed surprise that Diageo has moved away from it.
The deal does provide diversification – Diageo has a large stable of over 20 Scotch whisky brands, including Bells’ and world number one Johnnie Walker. The new Mexican owners said they are very committed to developing Bushmills.
Headquartered in Mexico City, Jose Cuervo is the oldest tequila company in the world. The firm’s chief executive described the acquisition of Bushmills as “the most important purchase the company has made”.
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