Tyrrell's crisps tycoon sells Chase Distillery to Diageo
The farmer behind Chase gin and vodka and Tyrell’s crisps is selling his family-run distillery to Diageo, the world’s largest spirits company.
William Chase, who launched Chase Distillery in 2008, will offload the drinks business to Diageo for an undisclosed sum, joining the group's gin brands that include Tanqueray, Gordon's and Gilbey's.
Guinness and Johnnie Walker owner Diageo revealed plans in August to buy Aviation Gin, a US drinks brand backed by Hollywood actor Ryan Reynolds, in a deal thought to be worth $610m (£465m).
According to drinks data provider IWSR, the UK's retail gin market was worth £1.6bn last year.
Gin accounts for about 4pc of Diageo’s portfolio, with sales jumping 22pc in 2019. Gordon’s and Tanqueray, Diageo’s biggest gin brands, delivered double digit growth during the same period.
Dayalan Nayager, managing director of Diageo Great Britain, said: “We are thrilled to be bringing such a quintessentially British portfolio of high quality, crafted brands into our family.
“We are excited about the growth opportunity within the premium plus segment and are very much looking forward to working with the Chase team to build on the portfolio’s considerable potential.”
Chase Distillery was founded by Mr Chase in 2008 and makes seven gins, four vodkas and an elderflower liqueur.
The sale is likely to mean a big payday for Mr Chase, who also founded crisp brand Tyrell's before selling a majority stake in the snack business for more than £30m in the same year he started the distillery.
He set up Tyrrell's in 2002 after being declared bankrupt after struggling with the pressures of running the family farm he bought from his father at the age of 20 with a £200,000 loan.
Mr Chase used proceeds from the Tyrrell's sale to open the distillery that initially focused on vodka before expanding into gin. He runs the business with his two sons, Harry and James.
The range of spirits is distilled from scratch using British-grown potatoes, apples and botanicals on Chase Farm in Herefordshire. The steam energy used to run the distillery is produced on site from a biomass boiler powered by prunings from the apple orchard, with potato waste used as fertiliser to feed the farm’s cattle.
Chase Distillery posted sales of £12.5m for the 17 months to the end of 2018, its latest accounts show, compared with £7.1m for 2017. The extension of the accounting period was to bring its financial statements in line with internal budgeting, the company said.
Mr Chase said: "It's inspiring to have Diageo invest in Chase Distillery's future. They believe in the potential of our field-to-bottle spirits and will build on our mission to develop our sustainable distillery in Herefordshire."
Earlier this year, Chase started working with advisers at investment bank Rothschild to explore strategic options for the company.
It is understood that Mr Chase is now keen to focus on his Willy's Wellness brand, which produces gut health products such as apple cider vinegar and kombucha.
