Four years ago, the guys behind a pioneering pair of Dallas cocktail bars were a year into their follow-up venture producing a line of bottled cocktails they hoped could quench consumers’ appetite for drinks without sacrificing quality – and that might eventually prove profitable.
“It’s just crack and pour,” Rocco Milano said then. “That’s the beauty of OTR, brother.”
OTR stands for On The Rocks, and the operation is anything but after being acquired this week by Beam Suntory Inc., the Chicago-based, global liquor giant that wields Jim Beam, Maker’s Mark, Knob Creek, Laphroaig, Yamazaki and Hibiki among its portfolio – and those are just the whisk(e)ys. Terms of the deal were not disclosed.
“It has been a hell of a ride and I am so excited for all that the future holds!” Milano wrote in a Facebook post announcing the news. “So happy to be part of the BSI family!”
The jovial one-time theology major from Santa Cruz, Calif., was among the Dallas craft-cocktail scene’s early luminaries as it blossomed in the early 2010s, emerging from The Mansion at Turtle Creek to preside over the two well-regarded Uptown restaurant bar programs.
After both sites ran their course, Milano joined Barter owner Patrick Halbert and Andrew Gill, Halbert’s cousin, in an effort to design a line of ready-to-drink cocktails. Pre-mixed drinks were a fast-growing playing field at the time, and On The Rocks would soar, winning acclaim in the process.
Their venture wasn’t by design. The three initially planned to open a distillery as Barter plowed through its final days, but when some Virgin Airlines bigwigs came by the place to celebrate the airline’s Love Field debut in late 2014, an offhand remark by one of them – something to the effect of, “These drinks are so good, I wish we could have them on planes” – set their wheels spinning.
That led to more serious talks, then intros to other airlines, a crash course in bottled-cocktail science and plenty of their own capital. They started out in a bare-bones warehouse near Love Field that resembled like a chemistry grad students’ enclave, with bottles, beakers, cylinders and pipettes.
As the group gained notice and eventually a minority interest from Beam Suntory, their bottled cocktails – some of them classics, others Milano’s own creations – began to bear familiar Beam Suntory names, like a Mai Tai featuring Cruzan rum, a Hornitos tequila Margarita or a Knob Creek whiskey Old Fashioned.
“On the Rocks is the pioneer in the premium pre-mixed cocktails category, and joining forces couldn’t come at a better time,” Albert Baladi, president & CEO of Beam Suntory, said in a press release announcing the acquisition. “On The Rocks is perfectly positioned to address evolving consumer preferences, including convenience, quality, the emerging home-premise, and cocktails-to-go.”
According to the release, Halbert and Milano will continue to play roles with the brand.
“On The Rocks is extremely proud of what we’ve accomplished and the leadership position we’ve built in this rapidly growing sector over the last five years,” Halbert said. “We are thrilled to join the Beam Suntory family…. We’re confident that this is just the beginning.”