High West being sold

[VAGentleman]

A friend sent me this article.  Very interesting 

http://www.bloomberg.com/news/articles/2016-09-09/pernod-ricard-said-among-bidders-in-sale-of-high-west-whiskey

[tanstaafl2]

Interesting indeed. I hope that David will remain in place and perhaps retain some element of control similar to the Compass Box deal with Bacardi, presuming that is what he wants to do.  

 

The spirits world just keeps shrinking...

Edited September 9, 2016 by tanstaafl2

[GaryT]

Wow . . . David is one of the good guys in the industry, so hope he wants to stay involved (and that they don't go sideways with new owners).  I guess if he can retain some control, while cashing in significantly - good for him.  For the typical slamming of NDPs in certain circles, I've always thought he was doing it right.  Transparent, innovative, but not making everything "different/innovative".  I really appreciate their Double-Rye which isn't aged in funky stuff (although in private selections I guess it can be!)  And MWND is a favorite.  Regardless what happens with HW, first/foremost I hope most of all he gets what he's earned and wants out of it.  And secondly I hope they still make good whiskey   

[maybeling]

1 hour ago, GaryT said:

Wow . . . David is one of the good guys in the industry, so hope he wants to stay involved (and that they don't go sideways with new owners).  I guess if he can retain some control, while cashing in significantly - good for him.  For the typical slamming of NDPs in certain circles, I've always thought he was doing it right.  Transparent, innovative, but not making everything "different/innovative".  I really appreciate their Double-Rye which isn't aged in funky stuff (although in private selections I guess it can be!)  And MWND is a favorite.  Regardless what happens with HW, first/foremost I hope most of all he gets what he's earned and wants out of it.  And secondly I hope they still make good whiskey   

 

Given that his approach for many years now has been a good balance of whiskey geek adoration (due to the transparency Gary referred to), truly cool marketing (the Western motifs and bottles etc), and some great whiskey I guess it's not too surprising that HW is an attractive acquisition. Like others have mentioned, I do hope that Perkins will still be at the helm.

[bearmark]

I talked to a board member this week and he indicated that David Perkins would not remain at High West.

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[b1gcountry]

That stinks. Time to buy that reserve bottle of rr I've been meaning to pick up

[Josh]

Has it been confirmed that HW is on the block? The Bloomberg report is from anonymous sources and neither HW or P-R has confirmed this. They haven't denied it either, but that still puts it in the rumor category.

[birdie]

I visit HW about two times a month when in SLC on business and yes they are up for sale and yes the strong rumor is David is gone along with a 50 gallon barrel of cash. :-)

 

I fact I am in HW right now having lunch.......probably wont see much change for the foreseeable future as why kill a golden goose, but some of the 'special' part of HW like only available at the distillery and limited distribution may soon be over.

 

 

[Josh]

It's being reported by Shanken that Constellation has purchased HW for $150 million.

[garbanzobean]

22 minutes ago, Josh said:

It's being reported by Shanken that Constellation has purchased HW for $150 million.

WSJ has an article about the sale up as well.  According to it, the staff isn't expected to change much.  David Perkins will remain on as brand ambassador.  That said, it seems as though the clock usually starts ticking for a lot of folks once these big sales happen . . .

 

http://www.wsj.com/articles/constellation-brands-acquires-high-west-distillery-for-160-million-1475625536

[GaryT]

Interesting.  Depending upon the deal, as long as David and Constellation are on roughly the same page about direction, this could be exactly what he's looking for.  He strikes me as a guy who loves to experiment and play around with different ideas, and is passionate about the whiskey itself.  Never had a conversation with him about how running a business, managing people, etc drives him.  The fact he hired a professional CEO last year could have been merely a setup for a sale, or a setup for David to focus on doing what he loves rather than worrying about spreadsheets.  

 

While I agree with Eric historically this type of relationship doesn't last that long, I'm hopeful that David remains on board and steering the product development.  Because as much as I think David's a class act - I'm a selfish bastard that just wants new/cool whiskey   

[BottledInBond]

I feel as though my gut reaction is to hate hearing about a creative and fun independent business being acquired. But then, not every acquisition has hurt a distillery. I think Maker's is a decent example of an acquired distillery doing fine afterwards, outside of the one SNAFU with trying to drop the proof a couple years ago. 

 

Being owned by a larger company may actually help HW a lot, in terms of both sides of their operations. They should have easier access to more capital to invest in their own production, and also might get more economies of scale with sourcing on the NDP side. The (150) million dollar question is more about who is there to take advantage of that stuff, and blend the juice.

[MTNBourbon]

Not really a fan of HW, especially the prices. Did like the High West Whiskey - Rocky Mountain Rye - 21 Year Old (92 Proof).

[Kpiz]

2 hours ago, BottledInBond said:

I feel as though my gut reaction is to hate hearing about a creative and fun independent business being acquired. But then, not every acquisition has hurt a distillery. I think Maker's is a decent example of an acquired distillery doing fine afterwards, outside of the one SNAFU with trying to drop the proof a couple years ago.

This is my gut reaction as well, and I don't think it'll go away. I wasn't into whiskey when Beam bought MM but just based on the number of products each acquired company offers, it seems that there is more potential for change at HW than MM.

 

High West sent an e-mail to all their whiskey club members (which is really just an email distribution list for receiving info about new products and such) early this morning informing everyone of the sale and addressing concerns. I thought that was pretty cool of them. I pasted the letter below:

 

As a member of the High West Whiskey Club, it is very important to us that you are the first to know about news from our company. Today, High West Distillery is excited to announce that we are joining the Constellation Brands family.
 

Over the past few years, we have experienced tremendous growth thanks to our loyal supporters. We have found a partner who will allow us to continue to make the products you have come to love, while maintaining our pioneering and innovative spirit.

 

Every day, we are dedicated to our mission: to make delicious whiskey, to share our love of whiskey with our customers, and to celebrate our home, the West.

 

Thank you for your continued support of High West

-The High West Distillery Team

Edited October 5, 2016 by Kpiz

[Enoch]

A friend of mine who worked there said he thinks that was always the plan. And when you consider he is making more money in the sale than he would in profits for years...can you blame him.  Also, I'm really glad Kirin bought Four Roses.

 

ps...I'm buying several bottles of my favorites just in case.

Edited October 12, 2016 by Enoch