Corby Spirit and Wine, a prominent manufacturer and distributor of spirits and imported wines, has successfully purchased 90% of the outstanding shares of Ace Beverage Group. The acquisition was finalized for a total of CAD 148.5 million (approximately $111.21 million). This significant transaction further strengthens Corby Spirit and Wine’s position in the industry as it expands its portfolio and market presence through the integration of Ace Beverage Group.
Corby Spirit and Wine, a company majority owned by Pernod Ricard, holds the position of Canada’s second-largest marketer and distributor of spirits and wines.
Ace, a prominent alcoholic beverage company in Canada, is recognized for its leadership in the better-for-you category. The company’s flagship brand, Cottage Springs, holds the distinction of being the top ready-to-drink (RTD) brand in Ontario. Among its popular offerings are Cottage Springs Vodka Soda, Vodka Water, and Tequila Soda. Ace’s portfolio also features other notable brands such as Ace Hill, Cabana Coast, and Liberty Village.
According to Corby Spirit and Wine, the acquisition of Ace Beverage Group is expected to bring substantial expansion to Corby’s portfolio within the rapidly growing ready-to-drink (RTD) category. The company anticipates that the Ace team will contribute a profound comprehension of the category and its consumers, as well as innovation capabilities. This strategic move is poised to enhance Corby’s presence and market position in the RTD sector, providing significant scale to its product offerings.
Nicolas Krantz, Corby’s President and CEO, said, “We are extremely excited to partner with Ace and become one of the leading RTD players in Canada, as we believe the combined strength of our companies and people will unlock new opportunities…We look forward to welcoming them to Corby and are excited about the benefits this acquisition will create for our consumers, customers, and shareholders.”
He continued, “Corby’s sustained growth, as well as Pernod Ricard’s, relies on our ability to bring even more exciting choices to our consumers, by continually expanding into new and promising categories. RTDs are one such category and we are excited to partner with such visionary entrepreneurs to further develop our rich portfolio of RTDs now made up of ABG, Corby and Pernod Ricard brands.”
Corby Spirit and Wine anticipates that the acquisition will yield highly positive results, proving to be “highly accretive” to its overall business. By adding an asset-light, low capital expenditure (capex) business to its portfolio, the Canadian company aims to enhance its growth profile while maintaining strong margins, low leverage, and the ability to return capital to its shareholders. This transaction presents an opportunity for Corby Spirit and Wine to further strengthen its financial position and maximize value for its investors.
Ace Beverage Group’s Co-Founder, Cam McDonald, added, “We are thrilled to join Corby, and are extremely proud of Ace’s journey and accomplishments to date. As we begin this next chapter, we believe the significant joined expertise, experience and resources will help our businesses to take the next step in our shared ambition of continuing to develop industry-leading beverages for consumers.”
The remaining 10% ownership stake in Ace Beverage Group will primarily be retained by specific founders of Ace. Corby Spirit and Wine has secured a pathway to complete ownership of Ace through a series of two call options on the remaining shares, which can be exercised in 2025 and 2028. To finance the transaction, Corby will utilize its existing cash reserves and obtain financing amounting to CAD 120 million (approximately $89.86 million) from its majority shareholder, Pernod Ricard. This funding arrangement ensures Corby’s ability to execute the acquisition while maintaining its strong financial position.
