E & J Gallo Winery has agreed to purchase Agave Loco, the owner of the RumChata cream liqueur brand, for an undisclosed amount.
The company is also acquiring Midwest Custom Bottling (MCB), which produces RumChata at its facility in Pewaukee, Wisconsin, and MCB-owned brands The Tippy Cow and Holly Nog, with the transaction expected to close later this month.
Inspired by horchata – a traditional, often rice-based drink enjoyed in Mexico – RumChata was established in 2009.
The brand offers a range of rum-based cream liqueurs, including flavoured variants, as well as cold brew coffee made with RumChata.
“As a small independent producer, we never imagined the success of RumChata when we were just getting started back in 2009,” said RumChata founder, Tom Maas.
“We have taken the growth of the brand as far as possible as a small supplier, and it was the right time to find a new brand steward. I know the RumChata brand will thrive under Gallo’s guidance, and I am excited to watch the brand continue to grow and evolve in the future.”
Britt West, vice president and general manager of Gallo’s spirits business, said: “We see tremendous potential with this acquisition to further innovate in the premium spirits space with unique consumer propositions, while continuing to add value to our wholesaler and customer partners.
“Opportunities like this are rare in the spirits industry and we are excited to add RumChata to our expanding portfolio of noteworthy brands. We look forward to continuing to build brand awareness for RumChata, while expanding its availability both in the US and Internationally.”
E & J Gallo Winery recently completed the acquisition of more than 30 wine brands from Constellation Brands, nearly two years after the deal was first announced.
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