Irish whiskey brand Waterford has been sold to Tennessee Distilling Group for a sum of around €6m.

The brand was founded by industry veteran Mark Reynier and launched its first whiskey in 2020, but late last year, receivers were appointed following a period of financial strain. According to a report by the Irish Times, Tennessee Distilling Group, a major contract distiller in the US, plans to “invest significantly” in the distillery and its operations.

“The group brings comprehensive technical capabilities and experience from its established heritage in the US, which also includes an extensive global reach,” read a statement from receiver company Interpath.

“The investment will support long-term stability for the distillery, create new jobs in the region, expand its role in the local economy and open up new international markets.”

According to the same report, the most recent accounts for Waterford Whisky, filed with its parent company in the UK, show it had sales of €3m in 2022, down from €3.3m the year before.

When Waterford’s struggles were first made public, Reynier put much of it down to the financial implications of the pandemic and subsequent cost-of-living crisis, but there are other learnings to be had. Reynier also cited a poor choice of distributor in the US, the biggest export market for Irish whiskey, which is now thought to have cost the brand €300,000 in revenue.

The brand is reported to have accumulated losses of €7.7m with more than €40m worth of whiskey stocks.

Interpath managing director Mark Degnan said: “This investment from Tennessee Distilling Group provides a clear platform for future growth and represents a strong commitment to both the Waterford brand, the local economy and the wider Irish whiskey sector.”

Waterford was in Drinks International’s Brands Report survey as one of the top trending Irish whiskey brands in the world’s best bars. However, when Waterford’s troubles first surfaced, Irish whiskey expert and brand consultant Mark McLaughlin told Drinks International: “Creating an amazing brand, being bulletproof on your identity and releasing adventurous products isn’t enough to make the business a success. I have critiqued Waterford in the past for releasing too many products and arguably overcomplicating the importance of its terroir project. Regardless of this, its recent focus on cuveés has seen the release of some truly outstanding products.”

With fresh investment and an established route to market in the US, Waterford has a fresh shot at becoming a financial success as well as an innovative favourite among bartenders.