Alcohol giant Diageo has acquired Far West Spirits, which makes the Lone River Ranch Water hard seltzer brand.

Financial details of the deal have not been disclosed.

Established in 2019 by Katie Beal Brown, Lone River draws inspiration from the popular classic Texan ‘Ranch Water’ cocktail.

Under the deal, Brown will hold a minority stake in the company and will continue her association with the brand as CEO.

Brown will be working with Diageo North America’s top management team.

Katie Beal Brown said: “We started Lone River with the dream of giving people a taste of Far West Texas.

“We are so grateful for the diverse set of communities that have embraced our brand, extending far beyond our small place on the map. We found in Diageo a world-class partner who believes in our vision to bring the spirit of Far West Texas to as many as we can.”

Diageo said that it will fund the acquisition with existing cash resources.

Diageo North America president Debra Crew said: “We are excited to bring this vibrant young hard seltzer brand into our growing ready to drink portfolio. Lone River captures the magic of Americans’ love for agave flavoured beverages combined with their desire for light, convenient refreshment.

“This acquisition is very much in keeping with our strategy to acquire high growth brands in fast-growing categories and we look forward to working with Katie and her team to drive Lone River’s continued momentum.”

In another development, Pernod Ricard signed an agreement to acquire a majority stake in La Hechicera, a Colombian ultra-premium rum.

The deal is said to be part of Pernod Ricard’s ‘Transform and Accelerate’ strategic plan.