Diageo acquires Berlin vermouth start-up to strengthen aperitif category

The acquisition, the terms of which have not been disclosed, expands Diageo’s aperitif sector at a time when consumers are shifting preferences toward more casual drinking occasions and lower alcohol by volume (ABV) beverages as well as long drinks.

According to the Diageo, the purchase will strengthen its position in aperitif and expand the brand across Europe.

Belsazar is made from selected grapes including Pinot Noir among others from South Baden right at the edge of the Black Forest, infused with herbs to give it a unique natural character, and finished with a dash of fruit brandy.

The liquid is then aged for up to three months, allowing it to develop its range of complex aromas.

There are four Belsazar varieties: white, red, dry and its signature rosé. Belsazar was created to be enjoyed as an aperitif served with tonic and as part of classic and modern cocktails. It was named one of IWSR’s Top Ten brands to watch in the Radius 2018 report.

The acquisition is also an important milestone for Distill Ventures, the drinks industry’s first accelerator for new and growing spirits brands. Since its launch in 2013, Distill Ventures has significantly grown its portfolio and expanded into North America.

Independently run, Distill Ventures receives funding from Diageo, and draws on industry expertise and professional networks, to identify, invest in and accelerate aspiring drinks brands.

Belsazar joined Distill Ventures in 2014 and had performed strongly in its key markets, Germany and the UK. The brand’s heartland is Germany, where it is available in more than 750 on-trade outlets as of summer 2017, including gastronomy bars, Michelin starred restaurants, beer gardens and smaller restaurants where people are looking for light, long drinks with food.

In the UK, it is available in some on-trade locations including Soho House, Hakkasan and Chiltern Firehouse.

Belsazar’s founders Wagner and Brack will remain actively involved, working with Diageo to ensure the brand’s future success. Belsazar will sit within Diageo’s Reserve portfolio and will benefit from this team’s marketing and distribution expertise to accelerate the brand’s European footprint.

“This is an exciting new chapter for Belsazar as we integrate into Diageo’s portfolio of world-class brands,” said Wagner. “Our ambition right from the beginning in 2013 has been to share our aperitif with as many people as possible and we’re excited that this next step will help bring the spirit of Berlin to new consumers.”

“Working with Distill Ventures these past few years has given us an invaluable base of knowledge and experience that we’ll undoubtedly call on as we continue to grow the business with Diageo in Europe,” adds Brack.

David Gates, Managing Director of Diageo Futures says that nurturing the global drinks brands of the future is a core part of the strategy.

“We are thrilled that Belsazar is joining our wonderful portfolio of brands. Diageo is the home of many founder-led brands from Johnnie Walker, Tanqueray and Guinness to newer brands like Bulleit.”

“Partnering with entrepreneurs like Max and Sebastian, and nurturing the global drinks brands of the future is core to our strategy. It’s been very exciting to follow Belsazar’s development and we look forward to working to deliver the next phase of the brand’s growth.”