It is believed that the brand may have been sold for about 20m, although the value of the deal was not disclosed. That represents a significant markdown on market expectations for the price St Brendan's could have achieved if sold 18 months to two years ago. At that point it had been estimated the operation could have fetched up to 40m. Three senior managers at the plant, including managing director Ciaran Mulgrew as well as Robin Young and Michael Curry, are involved in the buyout.

St Brendan's, which is manufactured in Derry, was a lossmaking operation when Kerry Group secured the brand through its acquisition of Golden Vale in 2002. In recent years, however, the company has become profitable. Latest accounts for St Brendan's show it had sales of £15.8m in 2004, with an operating profit of £2.4m. That compared to revenues of £15.6m in 2003 and an operating profit of just under £3m.

However, sources pointed out last week that the market for liqueurs such as Bailey's and St Brendan's has declined in the US, and that there has been considerable pressure on margins. St Brendan's would also have felt the pressure of exchange rates fluctuations between sterling and the dollar, although it would have been more insulated from even larger swings in the euro.

St Brendan's, which also makes own-label drinks for supermarkets such as Marks & Spencer, was never a strategic fit for Kerry Group and had often been touted as a possible sale. Kerry had received approaches in the past from potential buyers. It is not clear whether the brand was put on the open market, as one industry source contacted last week was unaware that it was for sale.