E. & J.Gallo Winery’s Spirits Division has announced plans to acquire Agave Loco, the parent company of cream liqueur brand RumChata. The terms of the deal also include the company’s other brands, The Tippy Cow and Holly Nog, as well as Midwest Custom Bottling LLC, but financial details were not disclosed.

RumChata, a liqueur based on the milky rice drink from Mexico known as horchata, was founded by Tom Maas in 2009. The RumChata portfolio has since expanded to include MiniChatas, RumChata Cold Brew, RumChata Limón, and seasonal offering RumChata Peppermint Bark.

“We have taken the growth of the brand as far as possible as a small supplier, and it was the right time to find a new brand steward. I know the RumChata brand will thrive under Gallo’s guidance, and I am excited to watch the brand continue to grow and evolve in the future,” says Maas.

RumChata will join the spirits division of the wine giant along with brands such as New Amsterdam, Germain-Robin, High Noon, Pink Whitney, and Camarena.

“We see tremendous potential with this acquisition to further innovate in the premium spirits space with unique consumer propositions, while continuing to add value to our wholesaler and customer partners,” says Vice President and General Manager of Gallo’s spirits business, Britt West. “Opportunities like this are rare in the spirits industry and we are excited to add RumChata to our expanding portfolio of noteworthy brands.”

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