Ancho Reyes is made from ancho and poblano chiles cultivated in the volcano-enriched soils of Puebla, Mexico, and can be used as the foundation in cocktails. Montelobos is an artisanal mezcal.
In 2018 the net sales achieved by the two brands jointly amounted to approximately $7m. The two brands achieved a CAGR of 53.7% overall in 2016-2018.
Campari Group will take a 51% interest in the two companies for $35.7m. It includes the brands, intellectual property and related inventories.
The Milan-headquartered spirits company, which is the sixth-largest player in the premium spirits industry, says the two brands have international potential and will focus its attention on expanding the brands in the US.
Biggest potential for mezcal in the US
Mezcal is a distilled alcoholic spirit manufactured from agave plants, produced in Mexico. “Its production can be almost entirely considered truly craft, justifying a premium price point,” says Campari Group.
Mezcal is currently exported into over 50 countries in the world, with the US showing the biggest potential for the category growth. In the US market alone, mezcal value sales achieved a CAGR of 30.4% in 2008-2018, which compares with a CAGR of 24.1% worldwide over the same period.
In 2018 the core market for Ancho Reyes and Montelobos was the US, which accounted for 66.4% of the combined sales, with Mexico, the UK and other international markets accounting for the balance of net sales.