Beam Suntory Inc. is considering the sale of its brandies in Spain amid declining sales of the spirit, according to people familiar with the matter.
The sale, which would include brands such as Centenario, Fundador, Terry 1900, Tres Cepas and Terry Centenario, may fetch about 100 million euros ($112 million), the people said, asking not to be identified because the deliberations are confidential. The brandies could attract interest from other spirits companies and private-equity firms, they said.
Sales of brandy, a spirit produced by distilling wine that is typical in the south of the country, have declined in Spain as younger people shift to other alcoholic drinks including gin or whiskey, the people said. No final decision has been made and the company may still decide to keep the brands, the people said.
A representative for Beam Suntory declined to comment.
Suntory Holdings Ltd., the closely held Japanese whiskey and beer maker, last year agreed to buy Beam Inc. for $16 billion including debt to gain brands such as Maker’s Mark whiskey and create the world’s third-largest premium spirits company. Suntory said in May 2014 that it would focus on repaying debts from the buyout before seeking further acquisitions.
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