MGP has continued their buying spree with the acquisition of Penelope Bourbon LLC for a jaw dropping $105 million dollars (up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met). For …
MGP has continued their buying spree with the acquisition of Penelope Bourbon LLC for a jaw dropping $105 million dollars (up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met). For those unaware (including myself), Penelope Bourbon LLC was founded in 2018 and was family and founder-owned and operated.
David Colo, president and CEO of MGP Ingredients says:
We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio. This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands. Penelope is an excellent addition to our Branded Spirits portfolio as we look to expand its availability throughout our national distribution platform. We are enthusiastic about this acquisition and its ability to further our participation in the growing American Whiskey category while delivering meaningful long-term growth.
My Take
Absolutely amazing that I don't have a bourbon company of my own to sell for obscene amounts of money. I've only written one article about Penelope in the entire time I've had the blog so for them to be able to fetch $105 million is impressive. I've never had Penelope but selling to MGP should open up their distribution network to get it in more places. Alas, if anyone wants to buy this site for upwards of $100 million, hit me up on the contact link on the front page.
What do you think? Drop a note in the comment box below.
Here we are again with another Bourbon Community Roundtable. This one started off pretty tame, but towards the end we start digging deep so here is what’s on the menu for this one. A few weeks ago, it was announced that Penelope would be acquired by MGP, but notably its subsidiary Luxco for $215M. We all know this is a great move for the brand, but I posed a question to the group that intrigued me and that is if we will see more MGP brands be purchased as a result? I also follow it up with other powerhouse contract distillers and if we can see them copycat this acquisition in hopes of taking a brand to a new level. That quickly transitioned into the idea that brands can come out of nowhere. One of the most famous, or infamous, brands of all time was Ezra Brooks. A brand that was created out of thin air. Since consumers know more now than they ever have before, could we see another Ezra Brooks emerge in our lifetime? That tends to go into a few different directions but I won’t ruin the fun for you.
Show Notes:
Above the Char with Fred Minnick (@fredminnick) talks about if you could only drink one bourbon.
Will Penelope’s acquisition lead to MGP buying more brands to build their portfolio?
Consumers are as smart as ever, so could a phantom brand like Ezra Brooks work today?
Blended American Whisky has been ignored by connoisseurs for many years, largely because the category has been dominated by cheap blends using grain neutral spirits. Now, there’s a new era for Blended American Whisky as blenders explore the flexibility the category offers, from being able to blend Bourbons and Ryes with other styles of whisky to being able to use whisky matured in used barrels. We’ll talk with master blender Ari Sussman about the trend in this week’s WhiskyCast In-Depth. In the news, Australian distillers are in a dispute over what should be called a “single malt,” Russian officials raid Read More »
Blended American Whisky has been ignored by connoisseurs for many years, largely because the category has been dominated by cheap blends using grain neutral spirits. Now, there’s a new era for Blended American Whisky as blenders explore the flexibility the category offers, from being able to blend Bourbons and Ryes with other styles of whisky to being able to use whisky matured in used barrels. We’ll talk with master blender Ari Sussman about the trend in this week’s WhiskyCast In-Depth. In the news, Australian distillers are in a dispute over what should be called a “single malt,” Russian officials raid a factory producing counterfeit Scotch Whisky and other spirits, and we’ll learn what not to do when your golf bag catches on fire. In our Behind the Label segment, we’ll look at what researchers say is the proper amount of water to add to your whisky, and our latest Community poll asks whether you’d prefer to try a 50-year-old whisky or a 10-year-old bottled in 1920.
Another day, another 9 figure brand acquisition in the booming Bourbon Industry…MGP Ingredients has announced plans to acquire Penelope Bourbon, a family and founder run NDP (Non Distilling Producer), for $105 million in cash to be paid at closing. The transaction is expected to carry through by June 2023. The acquisition will be for 100% […]
Another day, another 9 figure brand acquisition in the booming Bourbon Industry…MGP Ingredients has announced plans to acquire Penelope Bourbon, a family and founder run NDP (Non Distilling Producer), for $105 million in cash to be paid at closing. The transaction is expected to carry through by June 2023.
The acquisition will be for 100% company equity, including ALL inventory (bottled and aging barrels) and intellectual rights. There is potential for additional payout capping the grand total at $110.8M, contingent on performance based metrics and brand growth through December 31, 2025.
“Transaction Highlights” below courtesy of MGP Press Release.
Transaction Highlights
Enhances presence in growing American Whiskey category
Expands portfolio of premium-plus price point brands
Leverages Branded Spirits national distribution platform to extend Penelope’s reach
Current MGP Distilling Solutions customer
Expected to be immediately accretive to Branded Spirits segment gross margin and consolidated adjusted basic earnings per share after close
Anticipated total cost synergies of approximately $5 million by December 31, 2025
Transaction is anticipated to close in June 2023
MGP and Penelope are already in an open partnership as they have provided the brand liquid since Penelope’s 2018 launch.
“MGP has been an incredible partner of ours since we started our business in 2018. We are excited to take our partnership to the next level with the goal of accelerating Penelope’s growth for years to come,” said Michael Paladini, CEO & Founder of Penelope. “Since our initial product launch in 2019, it has been amazing to watch consumers embrace our brand. We look forward to expanding our partnership with MGP and building on our legacy,” said Daniel Polise, COO & Founder of Penelope.
“We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio,” said David Colo, president and CEO of MGP Ingredients. “This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands. Penelope is an excellent addition to our Branded Spirits portfolio as we look to expand its availability throughout our national distribution platform. We are enthusiastic about this acquisition and its ability to further our participation in the growing American Whiskey category while delivering meaningful long-term growth.”
PENELOPE BOURBON’S WEBSITE:
Screenshot from Penelope Bourbon’s website.
About Penelope Bourbon
Founded in 2018, Penelope Bourbon has been one of the country’s fastest-growing whiskey brands. Named after co-founder Michael Paladini’s daughter, Penelope boasts a series of straight bourbon whiskey expressions that are all uniquely blended from three different mash bills.
Today, Penelope Bourbon is sold in over 30 states and 4 countries, coming out the gates strongly since launching just five years prior.
About MGP Ingredients, Inc.
MGP Ingredients, Inc. (Nasdaq: MGPI) is a leading producer of premium distilled spirits, branded spirits, and food ingredient solutions. Since 1941, we have combined our expertise and energy aimed at formulating excellence, bringing product ideas to life collaboratively with our customers.
As one of the largest distillers in the U.S., MGP’s offerings include bourbon and rye whiskeys, gins, and vodkas, which are created at the intersection of science and imagination, for customers of all sizes, from crafts to multinational brands. With distilleries in Kentucky, Indiana and Kansas, and bottling operations in Missouri, Ohio, and Northern Ireland, MGP has the infrastructure and expertise to create on any scale.
MGP’s branded spirits portfolio covers a wide spectrum of brands in every segment, including iconic brands from Luxco, which was founded in 1958 by the Lux Family.
Luxco is a leading producer, supplier, importer and bottler of beverage alcohol products. Luxco’s award-winning spirits portfolio includes well-known brands from four distilleries: Bardstown, Kentucky-based Lux Row Distillers, home of Ezra Brooks, Rebel, Blood Oath, David Nicholson and Daviess County; Lebanon, Kentucky-based Limestone Branch Distillery, maker of Yellowstone Kentucky Straight Bourbon Whiskey, Minor Case Straight Rye Whiskey and Bowling & Burch Gin; Jalisco, Mexico-based Destiladora González Lux, producer of 100% agave tequilas, El Mayor, Exotico and Dos Primos; and the historic Ross & Squibb Distillery in Lawrenceburg, Indiana, where the Remus Straight Bourbon Whiskey and Rossville Union Straight Rye Whiskey are produced.
The upfront consideration is $105.0 million in cash to be paid at closing, with further potential earn-out contingent consideration of up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met.
Premium plus American Whiskey brand consistent with MGP’s premiumization strategy focused on gross margin accretive growth brands
TCHISON, Kan., May 08, 2023 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of distilled spirits, branded spirits, and food ingredient solutions, today announced that its Luxco, Inc. subsidiary has reached a definitive agreement to acquire 100% of the equity of Penelope Bourbon LLC (“Penelope Bourbon” or “Penelope”) and its related assets. Founded in 2018, Penelope Bourbon is a family and founder-owned and operated American Whiskey company with a diverse portfolio of high-quality whiskeys in the premium-plus price tiers. The acquisition includes all intellectual property and inventory of bottled product, as well as Penelope’s aging whiskey inventory on a debt-and-cash-free basis. The upfront consideration is $105.0 million in cash to be paid at closing, with further potential earn-out contingent consideration of up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met, reflecting the brand’s current growth potential. The acquisition is expected to be financed using MGP’s existing revolving credit facility and cash on hand.
Transaction Highlights
Enhances presence in growing American Whiskey category
Expands portfolio of premium-plus price point brands
Leverages Branded Spirits national distribution platform to extend Penelope’s reach
Current MGP Distilling Solutions customer
Expected to be immediately accretive to Branded Spirits segment gross margin and consolidated adjusted basic earnings per share after close
Anticipated total cost synergies of approximately $5 million by December 31, 2025
Transaction is anticipated to close in June 2023
“We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio,” said David Colo, president and CEO of MGP Ingredients. “This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands. Penelope is an excellent addition to our Branded Spirits portfolio as we look to expand its availability throughout our national distribution platform. We are enthusiastic about this acquisition and its ability to further our participation in the growing American Whiskey category while delivering meaningful long-term growth.”
“MGP has been an incredible partner of ours since we started our business in 2018. We are excited to take our partnership to the next level with the goal of accelerating Penelope’s growth for years to come,” said Michael Paladini, CEO & Founder of Penelope. “Since our initial product launch in 2019, it has been amazing to watch consumers embrace our brand. We look forward to expanding our partnership with MGP and building on our legacy,” said Daniel Polise, COO & Founder of Penelope.
Advisors Reed Smith LLP acted as legal transaction advisor to MGP. TD Cowen served as exclusive financial advisor and BakerHostetler acted as legal transaction advisor to Penelope Bourbon.
About Penelope Bourbon
Founded in 2018, Penelope Bourbon has been one of the country’s fastest-growing whiskey brands. Named after the founder’s daughter, Penelope boasts a series of straight bourbon whiskey expressions that are all uniquely blended from three different mash bills. Remarkably smooth and flavorful, Penelope is perfect whether sipping neat or mixing in a cocktail.
Penelope’s core expressions, Four Grain, Barrel Strength, Architect and Toasted Series, have received over 30 combined awards and industry accolades. Most recently, the brand won Double Gold and ‘Best of Class’ at the 2022 San Francisco World Spirits Competition, and was awarded three Double Platinum Medals – along with the title ‘Blender of the Year’- by the ASCOT Awards (2022).
In addition to its cornerstone expressions, Penelope continues to introduce new and innovative limited releases within its Cooper Series, Private Select and Founders Reserve lines.
Today, Penelope Bourbon is sold in over 30 states and 4 countries. Proving that with enough love and care, and hard work, anything is possible. To learn more about Penelope, please visit penelopebourbon.com
The latest in the Remus Bourbon family, the Remus Gatsby Reserve, celebrates F. Scott Fitzgerald’s classic novel, “The Great Gatsby,” which examines prohibition-era America during the Jazz age. The bourbon, crafted by master distiller Ian Stirsman and his team at Ross & Squibb Distillery, is made with 15-year-old reserves of straight bourbon whiskey. How is it? Check out our review!
Remus Gatsby Reserve Kentucky Straight Bourbon Whiskey 15 Years Old Ross & Squibb (MGP) Proof: 97.8 MSRP: $199.99 Review
Please enjoy our Remus Gatsby Reservereview by Ray Marcano.
Remus Gatsby Reserve 15 Year Bourbon Review
This bourbon may be expensive, but it’s worth the investment. Exquisite.
History
The latest in the Remus Bourbon family, the Remus Gatsby Reserve, celebrates F. Scott Fitzgerald’s classic novel, “The Great Gatsby,” which examines prohibition-era America during the Jazz age. The bourbon, crafted by master distiller Ian Stirsman and his team at Ross & Squibb Distillery, is made with 15-year-old reserves of straight bourbon whiskey.
Cherry candy and licorice jump out on the nose and remain the predominant flavors. I let it rest in my Glencairn glass for a few minutes, tried again, and got a little vanilla this time but not enough to cut through the cherry. The tongue gets hit with a taste explosion, a mouthful of warm caramel and butterscotch followed by a little maple syrup so thick it felt like my throat was becoming coated in sweetness. There’s a little oak, less than I anticipated for a 15-year-aged product, and the finish is as long as a passionate kiss. Just a touch of burn, and I mean the good kind that makes you feel all toasty inside.
Conclusion – Remus Gatsby Reserve Bourbon
The Remus Gatsby Reserve is onespecial bourbon that immediately works its way into my top-tier bottles. It’s not a daily drinker only because of the limited availability and price. But it’s worth it. It’s delicious.
Would you like to learn more about distilleries and bourbon? Are you planning a trip to Kentucky Distilleries? Maybe you would like to live the bourbon life vicariously through us? If any of these are true, then check out BourbonObsessed.com today!
I’d like to thank ByrnePR and the Ross & Squib Distillery for providing this review sample with no strings attached.
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I’d like to thank ByrnePR and the Ross & Squib Distillery for providing this review sample with no strings attached.
Image elements courtesy Ross & Squibb Distillery.
Tonight is the NFL Draft. And while I only sort of follow NFL football, I am a college football diehard. And this is one event that cements the two together. And I love it. I used to watch the entire weekend way back when it was just Saturday and Sunday. I love it because I get to see the culmination of many of the storylines that ESPN has force-fed to us over the last few years on their college football shows. Whether it proves those stories correct or incorrect is part of what I find interesting. Team X decided to go with somebody from North Dakota State instead of an SEC or Big Ten powerhouse? Which paid shill is going to throw the biggest fit over that? The unintended drama is fun. Plus I like seeing kids have all their dreams come true.
And yes, I’m old enough that I refer to kids in their mid-20s as “kids.”
And what does that have to do with tonight’s whiskey? Well, for the longest time, MGP (now branded as Ross & Squibb) was a powerhouse in American Whiskey much like North Dakota State is a powerhouse in college football. There is no argument that they dominate their competition, but you’d have to be a pretty knowledgeable fan to know about it.
MGP supplied whiskey for the biggest rye brands in the country. Think Diageo’s Bulleit rye as an example. But they didn’t get much credit for that outside of hardcore fans. Mostly because no one wanted to tell anyone that what was in the bottle was purchased from a distillery in Indiana. These days that is changing as Ross & Squibb have their own brands that they produce. One of which is Rossville Union Rye.
Rossville Union is a rye that I find on the shelves quite often. I also see a lot of store picks of it as well. They tend to be very delicious. I pick them up quite often. There is a Barrel Proof offering that I really like but seldom see. And that’s because I recently learned that it is released annually as a limited edition product. (It’s probably good that I didn’t know that, or I’d have spent a lot more money on Rossville Union seeing as I would actually be purchasing those bottles when I saw them instead of saying “next time.”)
18,000 bottles were produced this year from a batch of 82 barrels. The final proof is 117.2° proof, it is age stated at 7 years old, and it retails for a suggested price of $69.99. Let’s see how it tastes.
Rossville Union 2022 Barrel Proof
Purchase Info: This sample bottle was sent to me by the producer for review purposes. The suggested retail price is $69.99 for a 750 mL bottle.
Price per Drink (50 mL): $4.67
Details: 58.6% ABV. 7 years old.
Nose: Herbal mint, cinnamon candies, cedar, and oak
Mouth: Hot, spicy, and sweet. Notes of herbal mint, cinnamon, cedar, vanilla, and hints of dark chocolate.
Finish: Long and warm. Notes of cinnamon candies, cedar, and mint.
Thoughts: This is delicious. So much so that, should I see them and if the store allows, I will be a jerk and buy two. Rossville Union 2022 Barrel Proof is just a deliciously-spicy rye that has enough age to notice but not so much that it takes over. I freakin’ love this one.
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Ross & Squibb Distillery, formerly MGP, has announced the annual release of their Rossville Union Barrel Proof. New for this year, the release carries a 7 year age statement. Ian Stirsman, master distiller at Ross & Squibb distillery …
Ross & Squibb Distillery, formerly MGP, has announced the annual release of their Rossville Union Barrel Proof. New for this year, the release carries a 7 year age statement.
Ian Stirsman, master distiller at Ross & Squibb distillery says of this release:
Rossville Union 2022 Barrel Proof is another example of the great rye-whiskey tradition we've carried on at Ross & Squibb Distillery and yet another reason Indiana is the rye capital of the world. As the popularity of rye whiskey continues to grow, we've selected another exceptional medley of rye mash bills to satisfy even the most discriminating tastes among the ever-growing numbers of rye-whiskey drinkers.
This release has a limited allocation of 18,000 bottles. It comes in at 117.2 proof (58.6% alcohol) and has a suggested retail price of $69.99. This release was made up of 82 barrels and each bottle has the barrel displayed.
My Take
Doing the math... this means each barrel made up 219 bottles... each barrel holds 53 gallons (240943 mL's total)... so if we multiply 219 x 750 ml, we get 164,250... which means that almost 80,000 mL's were lost to the angel's share (providing the distiller didn't hold any bottles back, which, they probably did).
In terms of the release, I think 7 years of aging is a great time to pick from the barrel. One of my favorites of all time is the Old Ezra 7. For $70, it's a bit on the high side, but I think it's worth giving it a try if you see this out and about.
What do you think? Drop a note in the comments below.
LAWRENCEBURG, IN – Ross & Squibb Distillery (formerly MGP for in house made whiskies) just announced the launch of Rossville Union 2022 Barrel Proof, its annual, limited-release straight-rye whiskey. HITTING SHELVES across the country starting this month Limited allocation of 3,000 six-pack cases 117.2 proof (58.6% ABV) Suggested retail price of $69.99. Rossville Union 2022 […]
LAWRENCEBURG, IN – Ross & Squibb Distillery (formerly MGP for in house made whiskies) just announced the launch of Rossville Union 2022 Barrel Proof, its annual, limited-release straight-rye whiskey.
HITTING SHELVES across the country starting this month
Limited allocation of 3,000 six-pack cases
117.2 proof (58.6% ABV)
Suggested retail price of $69.99.
Rossville Union 2022 Barrel Proof features a medley of straight-rye mash bills, distilled by one of the largest producers of rye whiskey in America – Ross & Squibb Distillery.
The flavor profile (provided by R&S) includes an aroma of rye spice, vanilla, caramel, oak, and slight chocolate; forward flavors of sweet caramel and vanilla, moving to baking spices and chocolate; and a lingering finish of rye and a hint of sweet mint.
There were 82 barrels selected for this year’s release, which is displayed on each bottle of Rossville Union Barrel Proof. And for the first time, the label features a 7-year age statement.
“Rossville Union 2022 Barrel Proof is another example of the great rye-whiskey tradition we’ve carried on at Ross & Squibb Distillery and yet another reason Indiana is the rye capital of the world. As the popularity of rye whiskey continues to grow, we’ve selected another exceptional medley of rye mash bills to satisfy even the most discriminating tastes among the ever-growing numbers of rye-whiskey drinkers.”
– IAN STIRSMAN, MASTER DISTILLER, ROSS & SQUIBB DISTILLERY
The award-winning Rossville Union Family of brands also includes a 94 Proof offering – Rossville Union Master Crafted Straight Rye Whiskey, which has a suggested retail price of $39.99.
Rested for 15 minutes in a Glencairn
Nose: Cherry, licorice, vanilla
If any of these are true, then check out 
LAWRENCEBURG, IN – Ross & Squibb Distillery (formerly MGP for in house made whiskies) just announced the launch of Rossville Union 2022 Barrel Proof, its annual, limited-release straight-rye whiskey. HITTING SHELVES across the country starting this month Limited allocation of 3,000 six-pack cases 117.2 proof (58.6% ABV) Suggested retail price of $69.99. Rossville Union 2022 […]