Southern Comfort liquor brand sold to Sazerac in $543.5M deal

Sazerac features Ancient Age Canadian whiskey and Dr. McGillicuddy’s liqueurs among its brand portfolio.

New Orleans-based Sazerac Co. will buy the Southern Comfort and Tuaca alcohol brands from Brown-Forman Corp. for $543.5 million. Tuaca is a small but premium brand of liquor.

Mark Brown, president/chief executive officer of Sazerac, said the company is excited to add “such iconic brands”. The sale is expected to complete on 1 March, subject to regulatory clearance.

The company, which manufactures Jack Daniel’s whiskey amongst many other brands, said that the decision to sell is a strategic move that it hopes will allow it to focus on its highest priorities. Brown-Forman has actively managed its portfolio over the last decade by developing, acquiring and divesting specific brands and categories with the aim of improving the growth and value creation prospects for its business. Marketing campaigns were launched by the company to try to revitalize it.

Southern Comfort has been in Brown-Forman’s hands since 1979.

Varga said the company would not completely replace the lost profits related to Southern Comfort and Tuaca brands by reducing operating expenses. The company pointed to weak sales at bars and restaurants and competition from new flavored whiskies.

Sales of Southern Comfort are divided down the line between the USA and all overseas markets. Its leading global markets include Europe and Australia. It owned Tuaca since 2002. The brand is mostly sold in the US but has a market in the United Kingdom as well.

Sazerac brands also include Sazerac Rye, Eagle Rare, W.L. Weller, Blanton’s bourbons, Ancient Age Canadian whiskey, and Dr. McGillicuddy’s liqueurs.