Phillips Distilling Co. is making a rare acquisition as the relatively new chief executive of Minnesota's largest liquor producer continues to put his mark on the company.
Princeton, Minn.-based Phillips will add Kamora Coffee Liqueur and Leroux brandy and liqueurs to its portfolio in a deal expected to close Dec. 1. Phillips expects to bring production of the newly acquired cordials to Minnesota next year.
Chicago-based liquor giant Beam Suntory sold the brands for an undisclosed sum in a deal announced Monday.
"Adding Leroux and Kamora was an opportunity to build on the most valuable part of our business," Phillips CEO Andy England said in an interview. "Flavored liquor — that's kind of our core strength."
Founded in 1912, Phillips is known best for its own brands of vodka and schnapps as well as UV vodka, Prairie Organic vodka and gin and Revel Stoke flavored whiskeys. Earlier this year the company introduced the Cubist freezer vodka and refreshed its branding, which it will extend to its new brands after bringing production in-house.
"Kamora looks tired, but makes a damn good white Russian," England said. "Frankly, there has been no innovation on these brands for years, and we can make them more relevant."
Liquor store sales soared during the pandemic, and spirits in particular have been on the rise, with increased interest in cocktails and mixology.
While American-made cordials have seen little growth in recent years, according to the Distilled Spirits Council of the U.S., overall the category has grown on the strength of foreign brands like Bailey's Irish Cream and Aperol.
