Campari Group has closed an agreement with Catalyst Spirits to acquire an initial 15% interest in Howler Head Bourbon, with a medium-term route to total ownership and exclusive global distribution rights.
As part of the deal, Campari will pay $15 million in cash in the first stage of path to total ownership, according to a press release. It can then acquire 100% of Howler Head through customary call options based on future brand results achievements, which can be exercised beginning in 2025.
Launched nationwide in the U.S. in 2021, Howler Head produces an 80 proof, banana-flavored super-premium Kentucky Straight Bourbon Whiskey. The label is owned by whiskey entrepreneur Steve Lipp and Wooler Brands, Inc. CEO Jason Wooler.
The bourbon brand, the official whiskey partner of mixed martial arts competition Ultimate Fighting Championship (UFC), sold 55,000 cases during its introductory year and was later named one of the fastest-growing American whiskies in California, Florida, Michigan and New York by Nielsen on February 26, 2022.
“With bourbon serving as one of our global priority brand pillars, Howler Head is an ideal fit for our portfolio,” said Campari Group CEO, Bob Kunze-Concewitz, in the release. “In addition to being an exceptionally high-quality liquid, Howler Head has established a clearly unique brand personality and, through its deep relationship with UFC, has a huge on-tap worldwide fanbase ready to enjoy this fantastic bourbon.”
The deal comes on the heels of Campari Group’s partnership with Moet Hennessey last year. The groups formed a 50/50 joint venture with the purpose of investing in wine and spirits companies and building a European ecommerce platform.
“Campari Group has a proven track record for building global brands that consumers truly love and we can think of no better partner as we expand distribution of Howler Head around the world, as well as tap into the vast potential that remains in our existing markets of the U.S., Canada and the U.K.,” said Simon Hunt, CEO of Catalyst Spirits, in the release.
In Canada, Howler Head experienced quick growth with opportunities in Quebec, Ontario and British Columbia, all of which are home to large UFC followings. In the U.K., the brand was introduced as part of UFC’s return to the market during a match at the O2 Arena and subsequently moved into on- and off- premise retail outlets.
Hunt added, “In our second year in full market, we are witnessing an incredible demand for this product and see endless opportunity for growth as we maximize Campari’s established route-to-market expertise, including its vast sales organization and distributor relationships, both in the U.S. and internationally.”