Dutch spirits producer Lucas Bols has acquired Nuvo Sparkling Liqueur from the US-based London Group for $5.7 million.
Nuvo is a pink sparkling liqueur made of vodka, sparkling wine and a blend of fruit nectar. The brand’s primary focus has been on the US markets as well as select markets in Latin America.
In December 2017, Lucas Bols entered into a strategic partnership with the London Group for Nuvo which included a put-and-call option. The put option (which gives the holder the right to sell a stock) was exercised by the London Group earlier this month.
For the last five years, as part of the strategic partnership, the Nuvo business has been part of the consolidated Lucas Bols reporting. During this period, an annual commission of 60% of contribution after advertising and promotion expenses was paid to the London Group. By acquiring the brand, this commission payment is no longer required – set to improve the profitability of the Nuvo brand for the Lucas Bols Company.
In a statement, Lucas Bols said: “The acquisition of the Nuvo brand fits well in the growing aperitif moment of consumption, and with its super-premium positioning, it contributes to the premiumisation of our portfolio”.
The purchase price of $5.7 million was determined with reference to the financial performance of the previous fiscal year.
© FoodBev Media Ltd 2024
