So the big news in the whiskey world over the last few weeks is that MGP is buying another of their customers. This is a trend for them. They started the entire customer facing push by buying the George Remus brand a few years ago. Then they bought an entire liquor producer in Luxco. I’m sure there have been others, but the one we are focused on today is Penelope Bourbon. According to MGP, the acquisition is part of their “premiumization strategy.”
Started in 2018 by Mike Paladino and his wife Kerry, along with their friend Danny Police, Penelope was named after Mike and Kerry’s baby girl. Along the way, their MGP sourced bourbon has won quite a few awards over the years. Which it should, MGP makes damn fine bourbon. The big news these days is that the founders are now about $100 Million richer than they were back in 2018. I’ll let the MGP PR folks tell the tale. They get paid more to write than I do, might as well let them do it.
MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of distilled spirits, branded spirits, and food ingredient solutions, today announced that its Luxco, Inc. subsidiary has reached a definitive agreement to acquire 100% of the equity of Penelope Bourbon LLC (“Penelope Bourbon” or “Penelope”) and its related assets. Founded in 2018, Penelope Bourbon is a family and founder-owned and operated American Whiskey company with a diverse portfolio of high-quality whiskeys in the premium-plus price tiers. The acquisition includes all intellectual property and inventory of bottled product, as well as Penelope’s aging whiskey inventory on a debt-and-cash-free basis. The upfront consideration is $105.0 million in cash to be paid at closing, with further potential earn-out contingent consideration of up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met, reflecting the brand’s current growth potential.
Not going to lie…since MGP was the one making the whiskey, this seems like an awful lot to pay for a few labels. But heck, that’s why I am a dog sitter who writes about whiskey for free and not someone who has the extra cash to acquire a bourbon company, right?
So based on the fact that this news was big enough to even land in Chuck Cowdery’s latest newsletter, I decided to go pick up a couple of these oh so prettily named bourbons. I do love the name Penelope, after all. Up first is the “affordable” option. The 80° proof Four Grain Bourbon. Penelope blends three different bourbon mash bills from MGP to form their bourbons. They don’t say but based on the math, I’d guess it includes one of the “ryed” bourbon recipes, the 45% wheat recipe, and maybe the 99% corn recipe? No idea but they say that the final mash bill of this one is 75% corn, 15% wheat, 7% rye, and 3% malted barley. So based on the math I think we can eliminate MGP’s 49% malted barley bourbon.
In any case, let’s get to why we are here. How does this hundred million dollar baby taste?
Penelope Four Grain Bourbon
Purchase Info: $38.99 for a 750 mL bottle at Viking Liquor Barrel, Prior Lake, MN
Price per Drink (50 mL): $2.60
Details: Blend of three bourbon mash bills combining to the ratio 75% Corn, 15% Wheat, 7% Rye, and 3% Malted Barley. Barrels have a #4 char, the heads have #2 char. Non-chill filtered. 40% ABV. 26 months old.
Nose: Grain-forward, vanilla sugar, mint, and nutmeg.
Mouth: Thin and gentle with just enough spice to keep you interested. Notes of nutmeg, almond, and a touch of mint and orange zest.
Finish: Gentle and on the shorter side of medium length. Light notes of cinnamon, bitter citrus, and oak.
Thoughts: This is a well crafted bourbon. I can see why MGP would want to pick this brand up, especially since it seems like the blender is staying on. That said, I doubt I will be picking it up again. For almost $40, I want more than "26 months" in the barrel and 80° proof. Hopefully the new owners will adjust the price -to-value ratio a bit, though I'm realistic enough to have my doubts. That said, in a vacuum, it's a tasty bourbon... as long as you are the one buying.
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