Beam Suntory acquires Sipsmith Gin ahead of global push for London craft brand

Japanese spirits group Beam Suntory has swallowed London-based Sipsmith Gin for an undisclosed sum to add a craft brand to its stable and capitalise on the explosion in demand in the sector.

The maker of Jim Beam and Maker’s Mark has “ambitious” export plans for the brand and will use its global leverage to accelerate the global growth of Sipsmith and its premium London Dry Gin offering.

The deal comes as gin sales in the UK exceeded £1bn for the first time as Brits sank 283,000 hectolitres, equivalent to 40 million bottles, in 2016, according to the Wine and Spirit Trade Association.

Sipsmith will continue to be run by its founders Sam Galsworthy and Fairfax Hall, with the operations remaining in London.

“This is a momentous occasion for Sipsmith,” Galsworthy said. “As leaders of the gin renaissance in the UK, we have worked tirelessly to share our gin of the highest quality with discerning sippers.

“In this new chapter, we have found the perfect partners to take Sipsmith to all four corners of the globe, and do so whilst retaining our quality gin, astonishing team and Chiswick distillery in London.”

Beam Suntory CEO and chairman Matt Shattock said: “With incredible skill and passion, Sam and Fairfax have built an extraordinary super-premium gin that is synonymous with London and the utmost craftsmanship.

“We’re thrilled that Sam and Fairfax will continue to lead the business and make their gin true to their brand vision. We really admire what they’ve accomplished, and we’re very excited to team up with them to maximize the global potential of Sipsmith. Sipsmith’s pioneering spirit and Beam Suntory’s strong routes to market around the world are a winning combination.”

Sipsmith has grown rapidly since it was established in 2009, with more than two-thirds of its current sales generated in the UK. But the brand is still relatively small and has yet to file full accounts at Companies House.

The transaction, which gives Beam Suntory 100% control of Sipsmith, is expected to be completed in January. Specific terms were not disclosed.