• by Steve Ellwanger , May 11, 2023

Ultra-premium whiskey brand Penelope will become part of the spirits family at whiskey producer MGP Ingredients in a deal valued at $105 million.

Aside from the price tag for a four-year-old brand, what’s notable about the transaction announced on Monday is that Penelope already buys whiskey from MGP and then bottles and markets it.

Thus MGP is acquiring Penelope’s intellectual property and existing inventory with the intention of expanding Penelope’s national distribution.

“With four core brands, along with several limited offerings, 78% of Penelope's bourbon portfolio is in the ultra-premium price tier,” investment firm TD Cowen said in a report issued Tuesday. 

In terms of pricing, Penelope eclipses MGP’s top brands Remus, Yellowstone and El Mayor.

Launched in 2019, Penelope is undergoing “torrid growth,” TD Cowen noted, with dollar sales growing 347% year over year in the four-week period ended April 22 in channels tracked by NielsenIQ.

In the acquisition by MGP subsidiary Luxco Inc., the price tag could rise to $110.8 million if “certain performance conditions are met” by the end of 2025.

The deal is expected to close next month.