Diageo acquires Mr Black

Diageo has acquired Mr Black, the Australian premium cold brew coffee liqueur.

Diageo acquired a minority stake in the business in 2015 just two years after it was launched by designer Tom Baker (pictured below right) and award-winning distillery, Philip Moore with a vision to bring global coffee culture to the world of spirits and cocktails. (Pictured above, Mr Black Global Ambassador, Martin Hudak.)

Mr Baker said on LinkedIn: "An exciting (and pretty surreal) day for the brand, the Mr Black dream team and for myself and Phil. Thrilled to be a part of the Diageo family."

The 2015 deal was via Distill Ventures, the Diageo-backed accelerator program that has worked with Mr Black to support the brand's growth. Based in Erina on the New South Wales' Central Coast, Mr Black has grown to become the leading premium-priced coffee liqueur[1] in the United States and the fastest growing brand in the global coffee liqueur category.[2]

The Mr Black acquisition is the fourth Distill Ventures program to exit to Diageo and the first Australian brand to do so.

Diageo Australia Managing Director Angus McPherson said, "It’s wonderful to see Mr Black become part of Diageo’s incredible line up of the world’s best spirits alongside another Australian icon, Bundaberg Rum.

"The Australian spirits industry is so dynamic right now. Not only have we seen Australian distilleries grow from just 28 to more than 400 since 2014, but we’re also seeing Australian spirits brands receive widespread international acclaim and expansion of Australian spirits in overseas markets."

Launched in 2013 with a vision to apply modern coffee brewing techniques and quality sourcing to reinvigorate coffee cocktail culture and consumers’ desire for premium coffee cocktails, such as the espresso martini and coffee old fashioned, The New York Times has described Mr Black as, "The leader in a new breed of spirits".

Frank Lampen, CEO and Co-founder, Distill Ventures said: “It was love at first taste with Mr Black, and Tom Baker is one of the most intuitive brand builders we've had the pleasure of working with. We're proud to have helped him and his team turn those solid foundations into a commercial success globally and especially in the US.”

Mr Black appeals to craft cocktail lovers and consumers seeking delicious tasting cocktails in bars and restaurants, and for indulgent, at-home occasions. Mr Black sources and roasts coffee to its own bespoke specification, creating the premium liqueur with a delicious and rich coffee taste.

Co-founder, Tom Baker, will remain actively involved with the brand, working with the Diageo team to build on Mr Black’s success.

Mr Baker said: “Coffee is more than just a drink – it’s a culture, ritual, obsession, aesthetic, experience, tradition and a community. We created Mr Black to embody that culture and inspire people to take their love of coffee into their evening drinks.”

Mr Black is currently available in 22 countries including Australia, the United Kingdom, and the United States – which is its largest market. The acquisition has been funded through existing cash resources.

1 IWSR, 2021: volume CAGR 2017-2021

2 IWSR, 2021: by volume