Spirits-based, ready-to-drink (RTD) canned cocktail brand Fishers Island Lemonade has agreed to be acquired by Spirit of Gallo, the spirits division of E. & J. Gallo, the companies announced today in a press release.
Financial terms of the deal were not disclosed. Arlington Capital Advisors represented Fisher Island in the transaction.
Fishers Island, named for the New York island where founder Bronya Shillo’s family owns the Pequot Inn, is a canned version of the inn’s popular signature cocktail. The 9% ABV drink contains vodka, whiskey, lemon and honey. Shillo had the idea to package it after seeing how frequently Pequot Inn bar staff had to step away to replenish 15-liter batches on busy summer weekends during her stint as the bar’s manager, according to the release.
Cans of Fishers Island Lemonade launched in 2014, before the RTD segment became as large as it is today. Since then, Shillo has expanded the brand family to include Fishers Island Half and Half (7% ABV), Fishers Island Pink Flamingo (7% ABV) and 7% ABV freeze pops.
“When I launched Fishers Island Lemonade nearly a decade ago, I never could have imagined the overwhelming love and support we received that allowed us to grow the brand from a single cocktail into a family of full-flavor spiked lemonade craft cocktails in a can,” Shillo said in the release. “Spirit of Gallo has a proven record of innovation and success in the RTD category and there is no other organization I would trust to take Fishers Island Lemonade to the next level.”
Shillo will remain involved “to guide the brand and serve as its official spokesperson,” Spirit of Gallo SVP and general manager Britt West said in the release.
“In the ready-to-drink category, consumers are trading up to spirits-based cocktails and demanding more full-flavored, higher ABV products, reflecting the overall trend of spirits premiumization in the United States,” West continued. “Having known Bronya for over a decade, I have watched her bring Fishers Island Lemonade from a concept all the way to its success as one of the highest-quality and best tasting canned cocktails in the market.”
Spirit of Gallo’s portfolio includes RTD segment leader High Noon Sun Sips, a vodka-based seltzer that launched in 2019.
In the 52-week period ending March 26, off-premise dollar sales of RTDs increased +4.3%, to more than $9.3 billion, according to market research firm Circana. Hard lemonade and tea collectively increased sales +17.6%, to nearly $1.5 billion, and volume +11.2% during that same period, the firm reported.
Fishers Island products are available direct-to-consumer across the U.S., and sold via Drizly in Colorado, Connecticut, Delaware, Florida, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, South Carolina, Rhode Island, and Vermont.