Diageo today said it has agreed to buy British gin and vodka maker Chase Distillery, marking the drinks giant’s latest effort to strengthen its gin portfolio.
The Herefordshire-based distillery is best known for its Chase GB Gin, as well as its Chase Original Potato Vodka.
In total the company’s portfolio includes seven gins, four vodkas and an elderflower liqueur.
The sale marks the third gin label acquisition this year for Diageo, which owns brands including Guinness and Johnnie Walker.
In August the FTSE 100 firm announced plans to buy Aviation American Gin, which is co-owned by Hollywood star Ryan Reynolds, for up to $610m (£468).
It has also invested in German craft gin maker Rheinland Distillers through its venture capital arm Distill Ventures.
Chase, which was founded in 2008 by entrepreneur William Chase, positions itself as a premium gin brand with a focus on sustainability.
The distillery has won awards for its Chase Original Potato Vodka, which is batch-produced in a copper pot using 250 potatoes per bottle.
“We are thrilled to be bringing such a quintessentially British portfolio of high quality, crafted brands into our family,” said Dayalan Nayager, managing director of Diageo Great Britain.
“We are excited about the growth opportunity within the premium plus segment and are very much looking forward to working with the Chase team to build on the portfolio’s considerable potential.”
The deal comes amid a continued boom in demand for gin across the country. The UK is Europe’s largest gin market, with a compound annual growth rate of 17.4 per cent between 2014 and 2019, according to industry body the IWSR.
Punters are increasingly splashing out for craft gins, with the premium segment of the market growing 40 per cent over the same five-year period.
The deal is expected to close next year, subject to regulatory clearances.