Global spirits conglomerate Diageo has acquired premium cold brew coffee liqueur brand Mr Black, in which it previously held a minority stake, the company announced today. Terms of the deal were not disclosed.
Based in Australia, Mr Black was created by designer Tom Baker and distiller Philip Moore and is sold in more than 22 countries, including the U.K. and the U.S., the latter representing its largest market. Baker is expected to stay with the brand post-acquisition to continue overseeing Mr Black’s international expansion, according to a press release.
“Coffee is more than just a drink – it’s a culture, ritual, obsession, aesthetic, experience, tradition and a community,” Baker said in a release. “We created Mr Black to embody that culture and inspire people to take their love of coffee into their evening drinks. Diageo understood our vision early on and now, after several years with them as a supporter, we are thrilled to be joining the Diageo family.”
Mr Black’s flagship liqueur is made with cold brewed arabica coffee beans and Australian vodka, and aims to provide a less-sweet alternative to products like Kahlua. Sold in 750 mL bottles, the product has an ABV of 25%. In the U.S., the brand has also introduced innovations including single-source coffee bean varieties, rum barrel and mezcal cask-aged liqueurs, and a Coffee Amaro made with citrus, gentian and botanicals.
Founded in 2013, Mr Black initially raised $20,000 through Australian crowdfunding platform Pozible to support its launch. Diageo took a minority stake in the company in 2015 through fund and accelerator program Distill Ventures. In 2017, the brand expanded to the U.S.
The acquisition was funded through existing cash resources, according to the company.
“With its award-winning liquid, eye-catching design and packaging, and ability to thrive in culture, we believe Mr Black is just getting started in the dynamic coffee liqueur segment,” Claudia Schubert, president, U.S. spirits and Canada for Diageo, said in the release. “This acquisition is in line with our strategy to acquire high growth brands in exciting categories, and we are delighted to welcome Mr Black into our portfolio.”
The deal places Mr Black next to spirits brands Johnnie Walker, Tanqueray, Casamigos and Smirnoff in Diageo’s portfolio. It also provides the U.K.-based multinational with another sizable liqueur brand, alongside leading cream liqueur Baileys.
A representative for Diageo declined to comment for this story.