Stock Spirits Acquires Borco: An Expansion into Tequila & Germany
Stock Spirits, a Poland-based company, has consented to take over Borco, a German firm that owns Sierra Tequila, for an amount that has not been disclosed.
Borco is the parent company of Sierra Tequila, established in 1981. The transaction, which is under the scrutiny of German and Austrian regulatory authority, will permit Stock Spirits to make an entrance into the German market and into the Tequila industry.
The intention of Stock Spirits is to leverage Borco’s distribution networks to introduce its brands into new markets.
Stock Spirits, recognized as a leading alcohol producer in Central Europe, runs five manufacturing facilities, and its products are available in over 50 countries.
The company boasts ownership of vodka brands such as Prestige, Lubelska and Żołądkowa, as well as Božkov rum, Fernet Stock herbal liqueur, and Stock 84 brandy.
Borco, a family-run business, will benefit from this deal by gaining a robust strategic investor to propel the global growth of its brands.
Jean-Christophe Coutures, the CEO of Stock Spirits, stated, “Borco has been a credible and esteemed entity in Germany and Austria for several years. The Borco acquisition signifies an essential stride in our expansion in Western Europe.
“Borco will enjoy improved growth prospects, including access to Stock’s comprehensive spirits portfolio. Stock Spirits shall achieve ingress into the German market, which happens to be one of the most colossal and thriving spirits markets throughout the European continent.”
In 2021, Stock Spirits was taken over by CVC Funds, a private equity and investment firm, in a transaction valued at £767 million (US$1.1 billion).
Krzysztof Krawczyk, a partner at CVC Capital Partners, expressed, “Our investment in Stock Spirits anticipated mergers and acquisition growth into new territories across Europe, and we are thrilled that the company is showing robust progress in this strategic direction.
“Borco’s brands, particularly Sierra Tequila, have excellent international potential that we hope to expand, and it’s a valuable addition to Stock’s geographic reach.” Sierra Tequila is sold in over 91 countries worldwide, including Australia, Thailand, and Chile.
The brand recently launched a low-ABV product, named Tropical Chilli.
Borco, also the owner of Helbing Kümmel herbal liqueur, has been family-run since its inception in 1948.
The Close of an Epoch
Markus Kohrs-Lichte, the chairman of Borco’s management board, stated that the deal represented the “appropriate leap into the future” for the German spirits corporation.
“The company will keep improving and growing its international business, which is good for clients, suppliers, and employees,” he said.
“At the same time, this acquisition symbolizes the end of an era for Borco as a family-run enterprise. My team and I are thankful for the unique years we shared with the Matthiesen family company and for the trust they vested in us.
“The Matthiesen family constructed one of Germany’s leading spirits businesses from scratch, and have now charted a new course for Borco. I anticipate a fresh chapter in the company’s extensive and triumphant history.”
Stock Spirits, headquartered in Warsaw, Poland, employs over 1,200 staff members.
The proposed acquisition comes just weeks after Stock Spirits decided to purchase the blended Scotch brand Clan Campbell from Pernod Ricard.
In parallel, Stock Spirits has also initiated talks to buy Dugas, a French spirits distributor, a move that is subject to approval from French regulators.
