Heaven Hill Brands has sold Irish Mist Liqueur to Dublin-based Old Canal Quay Spirits, returning one of Ireland's most recognisable drinks brands to Irish ownership after decades under foreign control.

David Phelan, the spirits entrepreneur who co-founded Boru Vodka and Castle Brands with Pat Rigney in 1998, will lead the brand's growth and development as chief executive of Old Canal Quay Spirits. The pair exited Castle Brands in 2005 through an IPO on the AMEX in New York, at a valuation of more than $100 million.

The investor group behind the acquisition includes:

• Pat Rigney, founder of The Shed Distillery of PJ Rigney, home of Drumshanbo Gunpowder Irish Gin
• Tom Cleary, owner of the iconic Dublin bar The Temple Bar
• Blue Ridge Spirits and Wine Marketing, the US-based premium wine and spirits company that becomes the new distributor for Irish Mist in the United States

The US remains the largest international market for Irish Mist, making the Blue Ridge distribution deal central to the new owners' strategy.

Why the deal matters to the buyers

Both Phelan and Rigney have direct history with the whiskey liqueur. They worked together developing and growing the brand after it was sold to C&C in the 1980s, before founding Roaring Water Bay Spirits Company in 1998, where they created brands including Boru Vodka.

"Irish Mist Liqueur was at the core of Ireland's rich spirits history, unique heritage, and remarkable character and we are honoured and excited to now play a role in reinvigorating this iconic Irish brand for today's consumer," Phelan said.

Rigney said he was delighted to support Phelan on both a professional and personal level as he leads the brand into a new era.

What does the seller gain?

Founded in the 1940s, Irish Mist became an international success early, particularly in the US market. For Heaven Hill, the divestment sharpens focus on its premium portfolio.

"Irish Mist is an iconic Irish liqueur, and the right move is placing it in the hands of an owner with Irish roots and the focus to grow it the way it deserves," said Allan Latts, Co-President of Heaven Hill Brands.

"As we invest behind our premium portfolio, this decision reflects the disciplined thinking that guides how we approach every brand in our lineup," Latts added.

A pattern of Irish brands coming home

The transaction continues a wider trend of legacy Irish drinks brands moving back into domestic ownership, following a wave of Irish distillery and gin acquisitions by local operators over the past decade. For operators and distributors in the Irish whiskey and liqueur category, the change adds another well-funded Irish-owned player competing for shelf space in the crucial US market.

Phelan's next steps centre on the Blue Ridge rollout across US distribution, with brand development under Old Canal Quay Spirits expected to build on the founders' previous track record of scaling Irish spirits internationally.