Australian distiller Top Shelf International has been acquired from administration by the newly-formed Blue Sky Drinks Co. – which has also bought local RTD business Gravity Drinks.

The publicly-listed Top Shelf appointed administrators in August to explore a recapitalisation or sale of the Grainshaker vodka business.

The financial terms of Blue Sky’s acquisitions of Top Shelf and Gravity Drinks were not disclosed.

Mick Spencer and Liam Battye, two of Gravity Drinks’ founders, are joining the new business. Spencer is Blue Sky’s executive chairman and Battye its head of operations.

They set up Gravity Drinks in 2022 as a supplier of “better-for-you” RTDs. The company has listings through Endeavour Group and Australian grocer Coles.

In a statement, Spencer said: “This is day one of something big. I’m incredibly proud of what Gravity has achieved in just three years, and even more excited for what’s ahead. We have stronger backing, bigger ambitions, and a renewed focus on what matters most: our customers, our suppliers and keeping the energy alive behind these incredible brands.”

Spencer declined to comment on the make-up of the shareholder group behind Blue Sky. The deal is expected to be finalised in the next four weeks.

Former Beam Suntory and Sazerac executive Ray Noble will take a seat on the new company’s board.

He said: "The Blue Sky line-up of NED, Grainshaker, Act of Treason, Golden Bickie and Gravity all blend local craftsmanship with fresh, modern energy ready to be unlocked. The new team has the know-how, passion and entrepreneurial spirit to take these brands to the next level, and I’m stoked to be part of that journey.”

Top Shelf’s appointment of administrators followed shareholder approval for a convertible note issue tied to a proposed A$10m ($6.5m) capital raise, part of restructuring plan set out in July that also included a co-packing deal with Idyll Wine.

In May, Top Shelf, home to NED whisky and Act of Treason agave, sold its Campbellfield production facility to Idyll Wines for A$8m.

The company’s shares had been suspended from trading since September last year due to the failure to file audited financial results for FY24.

"Australia’s Top Shelf, Gravity Drinks combined to form Blue Sky Drinks Co." was originally created and published by Just Drinks, a GlobalData owned brand.

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