Dive Brief:
- Sazerac — which owns brands like Fireball Cinnamon Whisky and Buffalo Trace Bourbon — is buying BuzzBallz, a ready-to-drink cocktail business for an undisclosed amount.
- BuzzBallz sells 200-milliliter pre-mixed canned cocktails in a variety of flavors. These include Espresso Martini and Pineapple Jalapeño. The company also sells other cocktail offerings such as Uptown Cocktails, Sip Sip Hooray, and Texas Craft.
- Growing consumer demand for RTD cocktails is prompting veteran beverage companies to purchase start-up brands and launch their own spirits-based drinks.
Dive Insight:
BuzzBallz founder and CEO Merrilee Kick said many beverage companies were interested in acquiring BuzzBallz, but Sazerac best matched the company’s ethos.
“They are a partner we can continue to grow with internationally, as well as expand our existing distribution footprint in the USA,” said Kick, who created the brand for her master’s degree thesis project in 2009. “We are excited about our future growth opportunities from the synergies we will create together.”
For Sazerac, the acquisition gives the over 400-year-old company with a sizable global spirits portfolio a deeper presence in the fast-growing canned cocktails segment. In the release, Jake Wenz, Sazerac’s CEO and president, said the story of its founder made the company confident in its decision to acquire BuzzBallz.
“Merrilee’s creativity, commitment to quality and drive is inspiring,” Wenz said. “BuzzBallz is truly one-of-a-kind and we can’t wait to help spread the products to more consumers all over the world.”
The demand for ready-to-drink canned cocktails is booming, with longtime heavyweights like Boston Beer and Diageo investing heavily in the offering. The category is projected to be worth $33 billion by 2033, increasing at a compound annual growth rate of 6%, according to Future Market Insights.
It’s a big reason why large alcohol companies have turned to M&A to increase their presence in the segment.
In 2020, whiskey maker Beam Suntory acquired premium RTD cocktail brand On The Rocks, and Constellation Brands fully acquired Austin Cocktails, a women-led startup based in Texas, two years later.
