The owner of Paddy Irish Whiskey Sazerac, one of the largest producers of distilled spirits in North America, is reportedly looking to develop a new home for the spirits.
It is understood that Sazerac, which owns over 450 brands worldwide, including Southern Comfort Spiced Whiskey, Fireball Whiskey and Buffalo Trace Bourbon, has approached distilleries in Ireland with a view to forming a joint venture or acquiring a distillery. to create a branded home for Paddy. .
It is further understood that the New Orleans-based company had also considered building a distillery.
Sazerac said he was unwilling to comment.
In 2016, Sazerac acquired the Paddy Irish Whiskey brand from industry giant Irish Distillers, which produces Jameson, for an undisclosed amount. Documents filed with the companies registry said Irish Distillers would receive â¬ 90m from the sale.
Under the deal, Irish Distillers would continue to produce Paddy Irish Whiskey at its Midleton Distillery in Co Cork as part of a long-term supply agreement with “no impact on roles at Irish Distillers” and all employees retaining their positions under “current terms and conditions”.
At the time of acquisition in 2016, Paddy Irish Whiskey was considered the fourth best-selling Irish whiskey brand in the world, with sales of around 200,000 nine-liter cases.
In 2018, Hi-Spirits, a subsidiary of Sazerac, took over the distribution in Ireland of Paddy Irish Whiskey from Irish Distillers.
An industry source said most brands in the industry, like Sazerac, would be keen to develop their own distillery.
The source added that they believed Sazerac would seek out a reasonably large distillery as it might aspire to become a brand selling half a million cases. They said said there was some overseas interest in Irish whiskey, adding that Sazerac’s decision to find a new location for Paddy would make sense.
Another source said she was aware of Sazerac’s interest in forming a joint venture with a whiskey distillery or building one from scratch.
According to the latest accounts of Sazerac’s Irish subsidiary, Sazerac of Ireland, the company reported an after-tax profit of over 1.4 million euros in the fiscal year ended end-June 2020, up from nearly 3.3 millions of euros. In addition, it achieved a turnover of over â¬ 18.3 million, compared to around â¬ 22.7 million.
At the end of its fiscal year, Sazerac of Ireland had assets of almost â¬ 172.8m, compared to â¬ 95.3m in 2019, and liabilities of just over â¬ 15.8m.
The directors’ report indicates that he increased his net assets by 1.3 million euros.
The accounts of Paddy Whiskey, which is engaged in the manufacture and sale of the brand, show that the company had retained profits of more than 2.1 million euros at the end of June 2020. This was up from retained earnings of approximately 1.2 million euros at the end of its previous financial year.
Paddy Irish Whiskey and Sazerac from Ireland applied to be re-registered as Unlimited Private Companies in June.