Caribbean spirits producer Angostura, which purchased the former Seagram's distillery and bottling plant in Lawrenceburg, Indiana, earlier this year, has announced plans to make the Lawrenceburg facility the flagship of the company's expanding operations and establish a U.S. corporate headquarters.
The Angostura distillery in Lawrenceburg, incorporated as Lawrenceburg Distillers Indiana LLC, is the single largest spirits distillery in the U.S. It produces 9 percent of the total U.S. domestic spirits consumption. This includes more than 31 percent of the domestic gin demand, 18 percent of the domestic vodka demand and 14 percent of the domestic whiskey demand.
Angostura's purchase of the Lawrenceburg facility earlier this year preserved about 150 jobs at the distillery. The former owner, Pernod-Ricard USA, had earlier announced plans to close the plant completely in order to divest of excess capacity after the acquisition of Allied Domecq. This would have cost more than 400 jobs.
No brands were acquired in the sale; those were retained by Pernod Ricard USA. As a result, Angostura will be the largest independent alcoholic spirits producer in the U.S. and an integral part of the supply chain for several multinational spirit brands.
Angostura expects that the independent operator status and favorable economies of scale will make it an attractive supplier for distillates and bottling. Company officials believe the site in Lawrenceburg provides an almost ideal central location with perfect infrastructure and distribution access via road, rail and barge.
Assets in the transaction include a 940,000 grain bushel storage capacity (located in Rushville, Indiana), 27.5 million USPG annual distillation capacity spanning 78 acres, a maturing warehouse capacity in excess of 400,000 barrels and a 196,000-square-foot bottling facility capable of bottling 18 million cases annually.
"We have engaged engineers and surveyors to inspect the operations of the plant and their indications are that it has been maintained and operated at a higher standard than most other distilleries in the U.S.," explained Duprey. "This is a fitting tribute to the management team we have retained, led by plant manager Rick Brock, as well as the skills and training of the entire work force. The quality our product is at the premium end of the industry."
As testament to the plant's quality, Angostura notes that three of the major brand names produced at the facility are among the Impact Magazine Top 100 Worldwide Brands, including Seagram's Gin, Seagram's Vodka and Seagram's 7 Crown American Blended Whiskey. Other types of distillate production in Lawrenceburg cover a wide range of spirit offerings comprising grain neutral spirit, gin, light whiskey, corn whiskey, rye whiskey and bourbons.
The Angostura Group of companies will be one of the first new customers, with plans in the works to move some packaging of products, including the world-famous Angostura bitters and its Lemon Lime & Bitters product, to Lawrenceburg. Duprey noted that Angostura will look at all opportunities for growth in the U.S., including additional acquisitions.
"Our goals are to aggressively grow our presence in the U.S.," said Duprey. "An industry trend has been to divest of manufacturing capacity and concentrate on brand equity. We plan to lure business to Lawrenceburg and develop long-term relationships with companies wishing to acquire better quality and service for both distillate and packaging."
Angostura, which is based in Trinidad and Tobago, is a leading rum producer. It is famous for manufacturing its namesake world famous Angostura Aromatic Bitters since 1824. Its brands include Angostura 1919 Rum, Angostura sauces, Caribbean Club Rum Punch, Scottish Leader Scotch whiskey, HINE cognacs and blu Vodka.
About Angostura and CL Financial
CL Financial is the parent company of Angostura Limited. Both are headquartered in Trinidad and Tobago, West Indies. The privately held CL Financial Group of Companies is one of the largest holding companies in the Caribbean, and includes interests in spirits and beverages, food manufacturing, insurance, financial services, real estate, media and communication, forestry and agriculture, health services, energy and petrochemicals, manufacturing, trading, distribution and retail. It holds shares in over 65 companies in 31 countries worldwide, including the Caribbean, Central and North America, Europe, Asia and India.
