Stock Spirits acquires three new brands to bolster key markets

By Jo Gilbert

Published: 13 October, 2016

Major spirits producer Stock Spirits is incorporating three new producers to its arsenal.

Stock Spirits, which has a major presence in central and eastern Europe, has purchased Prazska vodka, Nordic Ice and Dynybyl gin from leading sparkling wine and spirits producer Bohemia Sekt S.R.O for €5 million.

The acquisition is part of a move to strengthen the company's business in the Czech Republic as part of its wholesale and retail strategy.

It follows a difficult period for Stock Spirits, which suffered set-backs in Poland - one of its key markets - earlier this year, which led to a shareholder revolt led by its principal investor, Portuguese businessman Luis Amaral.

The purchase is part of the company's expansion strategy to enhance shareholder value through bolt-on acquisitions.

"They [the new brands] have a rich heritage and, with the appropriate brand investment and nurturing within our wider spirits portfolio, their addition will ensure Stock remains at the forefront of the Czech spirits market, which is so central to our business," Mirek Stachowicz, chief executive of Stock Spirits, said.

"As we stressed in our interim results announcement, we will continue to pursue further smaller bolt-on acquisitions to add to our brands line-up."

It is expected that by the end of the month, the brands will be distributed and marketed by Stock Spirits while production will be fully integrated into Stock Spirits' Czech production facilities by January 2017.

Stock Spirits owns production facilities in Poland and the Czech Republic, the company exports to more than 40 other countries worldwide as well as its core operations in Poland, the Czech Republic, Slovakia, Italy, Croatia and Bosnia and Herzegovina.

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