Diageo has announced the sale of the Archers peach schnapps brand to De Kuyper Royal Distillers for an undisclosed amount.

The beverage giant mentioned that the decision behind the sale was based on the brand’s performance and future expectations, implying a commitment to actively shape its portfolio towards opportunities that maximize long-term growth.

John Kennedy, Diageo’s President for Europe, stated, “We are committed to creating value for all our stakeholders by actively shaping our portfolio towards opportunities that will maximize long-term growth, including disciplined capital allocation.”

De Kuyper views the British iconic brand as an excellent complement to its premium cocktail liqueur portfolio, aligning with the ‘Own the Cocktail’ vision. The Dutch family-owned company also emphasized that the acquisition further strengthens its position, particularly in the UK, expressing the desire to have a presence in the peach category.

CEO Mark de Witte of De Kuyper commented, “We are doing this with Peachtree in several significant cocktail markets, but historically, the peach category in the UK belongs to Archers. We had the option to continue competing with Archers or to acquire Archers and add the brand to our premium liqueur portfolio. We chose the latter. Archers is a high-quality liqueur with a deeply rooted legacy in the minds of UK consumers when it comes to peach liqueurs. This strong brand has consistently performed well and maintained its relevance for UK consumers since its introduction to the market. The brand will be a top priority for De Kuyper, and we will contribute our expertise of over 325 years in liqueurs and our specialized knowledge in the peach category to enhance the best in Archers.”

Godelief van Erve, Global Marketing Director at De Kuyper, added, “We see an interesting growth platform for Archers in the cocktail category and will leverage the insights, experiences, and best practices we gained with Peachtree. Our focus is on the existing audience that resonates well with the brand, popular among cocktail-drinking consumers.”

According to Diageo, the sale will not have a significant impact on earnings per share (EPS). As part of this transaction, Diageo has signed a 24-month production supply agreement with De Kuyper Royal Distillers.

Launched in 1986, Archers is a component of many classic cocktails like WooWoo and Sex on the Beach.