Old Elk Acquired by MiddleWest Spirits
The second single-barrel pick I ever did was Old Elk for Crazy Naz. Remember that guy? Yeah, those were some times.
A few years ago now, I posted a piece playfully speculating on several of the bigger small distilleries that, due to their unique offerings and growing popularity, seemed attractive enough to be acquired by larger brand portfolios. Here’s the link if you are interested.
Some of my valuations, in hindsight, were quite laughable and even a bit head smacking, but the underlying reasons I provided at the time still remain relevant to this day.
I had Old Elk on that list, which is not a wild or unexpected pick by any means. It certainly stood out among the options available to me, and I’m not here flexing about being right after two long years of waiting (hell, throw enough things at a wall, and something is bound to stick eventually).
What I did not expect was who would ultimately end up making the strategic move by backing up the cash money trucks and ordering coffee. To my surprise, it was MiddleWest Spirits, a well-respected distillery located in Columbus, Ohio, known for their quality spirits and innovative approach to distilling (pumpernickel Rye slays!).
This was a gift from whatever heaven you believe in.
While the specifics surrounding the agreement aren’t currently available to the public, they are expected to be announced sometime this week. It is believed that the deal has been finalized, allegedly wrapped up on a Friday or perhaps even two Fridays ago.
Now, let me backtrack just a bit; please indulge me as I recount my morning yesterday.
A month or so ago, a significant number of the sales staff at Old Elk distillery were unexpectedly (for them) let go. Sadly, this situation has been fairly common throughout the spirits industry at large over the last 18 months.
Furthermore, it is likely to continue evolving as more brands opt to replace their in-house sales teams with external marketing companies, as they engage in comprehensive cost control measures to appease their shareholders while strategically positioning themselves for a convoluted and oftentimes perplexing discussion about their approach to ensuring readiness for the future aka GOBBLEDYGOOK.
On 5/10, I received a direct message from an unnamed whiskey enthusiast and friend asking about the latest happenings surrounding Old Elk Distillery. The messenger mentioned something intriguing regarding Old Elk potentially closing their tasting room, bar, and restaurant located in Fort Collins.
They had heard that some company in Ohio had possibly purchased Old Elk. This news immediately piqued my curiosity, prompting me to delve deeper into the situation because you all know by now that I love cosplaying as an investigative reporter.
I visited the Old Elk website because I know that webpages tend to be the last to receive updates, and I wanted to check if the bar and restaurant are still listed as operational. After a quick look even today 5/11, I can confirm it is still mentioned.
I then clicked on the link for reservations because they utilize OpenTable, and I trust that OpenTable provides accurate information. After navigating over to OpenTable (at this point, I feel I should be compensated for each time I mention Open Table), I discover that the restaurant is, unfortunately, not listed as being on Open Table.
Later in the evening, I saw that OpenTable had updated their page to indicate that Old Elk Reserve is now permanently closed.
The Bourbon and Rye Club, NOT brought to you by OpenTable.
With the idea that something significant was indeed afoot, I began my “research” by digging deeper into the matter. The Coloradan website, which unfortunately has a paywall that even using reader view wouldn’t circumvent, was the only listing I could find that mentioned the Reserve was closing its doors.
In an effort to gather more information, I then checked Old Elk’s Instagram account, and to my chagrin I had missed the post from a few days ago because of Zuckerberg's social media algorithm nonsense, where Old Elk announced the closure.
The smoke was clearly present, but was there fire? I had more research to do. Also due to my research did you know the earth is in fact not flat and that Zuckerberg is a Red Lectroid from Planet X? Who knew?
The plot thickened significantly when I was going through my website analytics—because, let’s be honest, I’m a nerd, duh—and I unexpectedly noticed that someone had visited my acquisition watch post from two long years ago. What was particularly intriguing was that the link leading to this old article was from a Google search. This particular search had occurred just a few hours before I received that pivotal DM that sparked everything.
The location of the visitor?
Ohio.
Hello Ohio.
I posted a story on Instagram that simply asked, “What’s going on with Old Elk? They recently closed their tasting room in Fort Collins, and I heard from a little bird that an Ohio company might be in the process of purchasing it. Does anyone have any insights on this matter?”
This post led to an explosion of DM’s and an engaging phone call with a whiskey enthusiast who prefers to remain unnamed (if they wish to receive credit, I’ll happily update this page) and was just as curious about the situation as I was. Our discussion turned out to be quite interesting and informative.
He had reached out to several contacts he knew at Old Elk, but unfortunately, he was met with a deafening silence in response.
The obvious speculation here is that non-disclosure agreements (NDAs) were likely in effect, because what employee of a company, when asked if their place of employment had been purchased, wouldn’t reply in some form? It seems unusual for individuals to remain completely silent, especially when confronted with questions regarding potential acquisition, particularly if they were not informed about the acquisition process beforehand.
Shit, I’d be like what the fuck did you hear and from whom?
No responses significantly upped the ante, and now we had multiple people on the case. Yeah, I said on the case, remember the cosplaying part? Don’t hurt my feelings, play along.
What happens with this guy?
A considerable amount of time was invested, and an extensive amount of shoe leather was worn out in the quest to determine who or what entity had ultimately purchased Old Elk. Later that afternoon, quite unexpectedly, a valuable tip came in from a member of the Chicago Outfit (cosplaying, but do keep up with the story).
“Old Elk was purchased. And it turns out the new owner is none other than MiddleWest Spirits. The ink is dry, and an official announcement is set to be made later this week.”
Fucking Chicago coming in with the W. First they get a Pope, and now this. I fear they’re about to become insufferable.
We will have to wait for the official announcement, and details of what will be. I for one am eager to hear what’s in store.
I want to wrap this up with a gentle reminder that while it’s certainly fun for me to engage in speculation and hopefully enjoyable for you, the readers, it is important to recognize that there are significant real-world impacts on the individuals who work in these various places.
Layoffs undoubtedly hurt. Uncertainty can be quite painful as well. Mergers or acquisitions often lead to even more job losses, and these situations are demonstrably not enjoyable for the dedicated human beings who invest their hard work and passion into these companies.
As we consider these circumstances, let’s keep these individuals in our thoughts and hope that they find themselves landing in a better situation elsewhere, and that the transition process isn’t the most challenging or distressing part of their year.
UPDATE- 5/13. Middle West Spirits made it official via a widely distributed Press Release. I don’t repost press releases without commentary, and I have a couple of questions which weren’t included in the press release itself.
1- What were the financial details of the merger?
2- Is there a plan for the former Old Elk employees that were laid off prior to the merger? Some of them were freakin rock stars, and many of them were not named Greg Metze.
3- What happens with the property in Colorado?
If anyone reading this has answers, you can email me.
- Mickey Pinstripe