Diageo is selling its Archers Peach Schnapps brand to De Kuyper Royal Distillers for an undisclosed sum.
John Kennedy, Diageo’s President of Europe, inferred that the move was due to the brand’s performance and future prospects, noting that the business was “actively shaping our portfolio towards opportunities that will maximise growth over the long-term.”
He added: “We take a disciplined approach to capital allocation and this announcement continues our track-record of active portfolio management.”
As part of deal, Diageo has agreed a 24-month manufacturing supply agreement with De Kuyper Royal Distillers.
De Kuyper stated that Archers Peach Schnapps was the ideal complement to its premium cocktail liqueurs portfolio.
The Dutch family company also disclosed that it is further strengthening its position, especially in the UK and that it “wants to own the peach category”.
De Kuyper’s CEO Mark de Witte commented: “We had the choice to keep competing with Archers or to try to acquire Archers and add the brand to our premium liqueur portfolio. We decided to do the latter. Archers is a high-quality liqueur with a great heritage, deeply rooted in UK consumers’ minds when it comes to peach liqueurs. This strong brand performs very stably and has remained relevant for consumers in the UK ever since its launch.
“For De Kuyper, the brand will have high priority and we will contribute our over 325 years of expertise in liqueurs and our specific knowledge in the peach category to bring out the best in Archers.”
Earlier this week, Brown-Forman reached an agreement to acquire the Gin Mare brands from Vantguard and MG Destilerías. Upon completion, Brown-Forman will add Gin Mare and Gin Mare Capri to its spirits portfolio.
