Bacardi Just Bought Patron Tequila For $5.1 Billion
Besides its namesake rum, Bacardi owns some of the biggest liquor brands in the world. Grey Goose vodka. Dewar’s scotch. Bombay Sapphire. As a category, however, tequila has always been a bit of a thorn-in-the-side for the company’s portfolio. They own Cazadores — which makes a fine reposado — but fail to make huge traction in the space.
Bacardi is acquiring Patron Spirits International AG for an estimated $5.1 billion, according to Bloomberg. Bacardi already owned a 30% stake in Patron, but this gives them a huge leg-up in the booming agave-based spirits market. Bloomberg says it’s a segment of the liquor business that’s growing like crazy, as opposed to rum and vodka:
Agave-based beverages, which include tequila and mezcal, have seen sales accelerate over the past decade. Super-premium tequila grew eightfold between 2002 and 2016, according to the Distilled Spirits Council, a trade organization. That’s attractive compared to other spirits segments, like rum and vodka: Rum volumes declined by 0.2 percent in the same period, and vodka gained 2.4 percent.
The main play here for both brands is worldwide distribution. Patron is largely an American brand still, but a move with Bacardi’s large distribution network pushes the liquor all over the world.
I’ll lick, shot, and suck to that.