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Princeton, Minnesota-based Phillips Distilling Company is adding two flavored liquor brands to its portfolio. 

Phillips announced on Monday it is acquiring Kamora Coffee Liqueur and Leroux brandy and liqueurs from Chicago-based Beam Suntory in a deal that's expected to close on Dec. 1. The terms of the deal were not disclosed. 

Leroux, which began in Brussels, is now produced in the U.S. and includes 19 varieties of liqueurs and eight flavors of brandies. Meanwhile, Kamora is the second most popular coffee liqueur in the U.S. and Canada.

"The consumption of cordials and liqueurs in the United States continues to grow steadily and Phillips Distilling has always been at the forefront of innovation in this category," Andy England, CEO of Phillips, said in a statement. "Acquiring Leroux and Kamora is a natural fit for what we do best. We're exceptional at differentiating flavor profiles and running small batches and changeovers that are critical to being successful in cordials and liqueurs."

Phillips was founded in 1912 and is known for its own line of vodka and schnapps, as well as its flavored spirits that include UV vodka, Prairie Organic vodka and gin, Revel Stoke flavored whiskies, Cubist Vodka, Sour Puss, Tomatin Scotch Whiskies, Trader Vic's Rums, and Douglas & Todd Small Batch Bourbon.

Adding Leroux, which includes 19 varieties of liqueurs and eight flavors of brandies, and Kamora, which is a coffee liqueur producer, to its portfolio will complement its product line and aligns with Phillips' "longstanding commitment to quality and craftsmanship," a news release said. 

"With our history and expertise in this category, this new acquisition will solidify our position as a market leader and gives us a fresh perspective to add to our expert blending and flavors teams," England said. 

This comes as the sale and consumption of spirits have grown as peoples' interest in cocktails and mixology continues to increase. 

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IWSR Drinks Market Analysis says alcoholic beverage consumption in 2020 saw the largest volume gain in nearly 20 years, noting it was driven by demand for flavor, in both alcohols and beers. 

Phillips, citing the 2021 Adams Liquor Handbook, says the cordials and liqueurs category grew 3.1% in 2020, making it the third-largest spirits category, contributing 10.5% of the overall spirits market. Meanwhile, consumption in the category of spirits grew from 20.1 million 9 liter cases in 2009 to 26.3 million 9 liter cases in 2020, Phillips said. 

"We're proud to acquire these appealing brands," England said. "This deal strategically puts us in a leadership position in the cordials and liqueurs category for years to come."

According to the Star Tribune, Phillips plans to bring the production of Kamora and Leroux to Minnesota next year. 

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