Balcones was founded in 2008 and was determined to create something new in the distilled spirits category. The distillery offers a diverse portfolio of award-winning premium spirits and whiskies, including Texas “1” American Single Malt, Lineage American Single Malt and Baby Blue Corn Whisky. Balcones embraces Texas’ intense heat as well as its temperature fluctuations to create whiskies with differentiated flavors. The team also leverages distinctive high quality, and often locally sourced, original ingredients, including Texas-grown malted barley and roasted blue corn, to produce a range of whiskies.
“Balcones started with an idea driven by an innovative spirit and passion to create something original and authentic in the heart of Texas,” said Balcones Distilling Chairman Greg Allen. “Now, we couldn’t be prouder to have created these award-winning American Single Malt and Texas whiskies, but also to have helped initiate an exciting new era of whisk(e)y in Texas. We are thrilled that Diageo shares our belief in its potential and we look forward to seeing Diageo bring Balcones’ incredible whiskies to more consumers.”
“We are delighted to welcome Balcones Distilling into Diageo,” declared President Diageo North America Claudia Schubert. “The Balcones team are true innovators and pioneers in the emerging American Single Malt and Texas whisk(e)y movements, and their super premium plus whiskies are highly complementary to our whiskey portfolio. This acquisition is in line with our strategy to acquire high growth brands in fast growing segments, such as super premium whiskey, and we look forward to working with the Balcones team to support further growth for these world-class whiskies.”
How Much Did Balcones Distilling Sell for?
The super-premium and above whiskey segment has seen consistent volume growth in the US in recent years, with a compound annual growth rate (CAGR) of 13.3% from 2016 to 2021.[i] Within that, American Single Malt Whisky has been a driver of momentum, with 18.2% CAGR over the same period.[ii]
Like most of the recent distillery sales the closing price was not disclosed. Diageo did say that the acquisition has been funded through existing cash resources.
Diageo is a global leader in beverage alcohol with an outstanding collection of brands including Johnnie Walker, Crown Royal and J&B whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness. Diageo products are sold in more than 180 countries around the world.
[i] IWSR, volume [ii] IWSR, US Single Malt Whisky category volume