Bacardí acquires Patrón
Bacardí announced that it’s expanding its portfolio of premium spirits through a definitive agreement to acquire 100% ownership of Patrón Spirits International AG and its Patrón brand, the world’s top-selling ultra-premium tequila. With Bacardí believed to have acquired a 30% stake in the brand in 2008 for $500 million, the transaction reflects an enterprise value for Patrón of $5.1 billion and is expected to close in the first half of this year. The purchase will make Bacardi the number one spirits player in the Super Premium segment in the US and the second-largest spirits company in share by value in this critically important market according to IWSR data.
Tequila is one of the fastest-growing and most attractive categories in the spirits industry, with Patrón the clear market leader in the Super Premium segment. IWSR figures indicate tequila growing at 5.2% in value in 2016 at a time when the overall market for alcoholic drinks fell by 1.3%.
Super Premium spirits brands continue to experience the fastest growth and this trend is expected to continue.
Patrón produces more than three million cases of spirits a year for global consumption. “Adding Patrón to the Bacardi portfolio creates a tremendous opportunity for the brand outside of the United States as Bacardi’s international distribution network will help grow Patrón around the world,” said incoming Bacardi Chief Executive Mahesh Madhavan.
Bermuda-based Bacard’s own portfolio includes Bacardí rum, Grey Goose vodka, Bombay Sapphire gin, Dewar’s Scotch and the Martini brands as well as a premium tequila portfolio comprising Cazadores and Corzo.
Patrón Spirits International AG is a privately-held, leading manufacturer of ultra-premium spirits available in more than 100 countries and islands across the world and sold in duty-free outlets.
The announcement comes within a few days of Pernod Ricard’s acquisition of Avion tequila (following its prior purchase of the Del Maguey brand last June) and within a few months of Diageo’s purchase of George Clooney’s Casamigos tequila brand, indicating the growing interest of the multinationals in the Mexican Agave plant spirit.