Food Culture Inc. Enters Negotiations to Acquire Grupo Austero

Food Culture Inc. has entered into negotiations to acquire Grupo Austero LLC, a company known for its mezcal and tequila products. The potential acquisition aims to broaden Food Culture Inc.'s product access and support the expansion of its branded spirits portfolio.

According to Ruben Yakubov, the President and director of Food Culture Inc., the objective is to enhance the company's product offerings and commercial relationships.

Grupo Austero's business includes the Austero tequila and mezcal product lines, which are described as 100% agave and additive-free. The mezcal range comprises Espadín, Tobalá, and Cupreata expressions, all produced using traditional methods such as earthen-pit roasting, fermentation in wooden vats, and copper-pot distillation. The company's mezcal is produced in San Juan del Río, Oaxaca, Mexico.

Food Culture Inc. is evaluating how these products and the associated commercial relationships could complement the marketing and product-development activities of its operating subsidiary, Distill Brands International (DBI). Due diligence will include confirmation of the brand rights, supply arrangements, and distribution relationships that would form part of any proposed transaction.

The potential acquisition is part of Food Culture Inc.'s strategy to expand its product offering and access established production capabilities. The company's asset-light business model centers on owning or licensing brands and packaging designs and working with qualified partners on product development and production. Through DBI, Food Culture Inc. seeks to expand its branded portfolio and access to products and distribution opportunities.

Financial and operational due diligence remains ongoing, including a review of Grupo Austero's financial statements, inventory, liabilities, ownership, and material agreements. Any acquisition would remain subject to satisfactory completion of due diligence, negotiation, and execution of definitive agreements, and applicable approvals. There can be no assurance that the parties will execute a letter of intent, reach a definitive agreement, or complete a transaction.

Food Culture Inc. develops and markets premium spirits and ready-to-drink products. Its asset-light business model centers on owning or licensing brands and packaging designs and working with qualified partners on product development and production. Through DBI, the company seeks to expand its branded portfolio and access to products and distribution opportunities.