Bacardi Completes Patrón Tequila AcquisitionMay 1, 2018
Bacardi Ltd. has completed its deal to acquire 100% of Patrón Spirits International. Announced in late January, the transaction values Patrón Spirits at around $5.1 billion and follows Bacardi’s initial 2008 purchase of a 30% minority stake in the company. In addition to the core Patrón Tequila lineup, the Patrón Spirits portfolio includes the Roca Patrón, Gran Patrón, Patrón XO Café and Citronge liqueur, Pyrat rum, and Ultimat vodka brands.
Credited with singlehandedly establishing the upscale Tequila category, Patrón today is the U.S. market’s third-largest Tequila brand by volume at roughly 2.5 million 9-liter cases, according to Impact Databank. The brand—whose volume rose by 7.6% last year—will now account for 27% of Bacardi Ltd.’s portfolio by value versus Grey Goose with a 26% share and the group’s flagship Bacardi rum with a 22% share.
The deal comes as competition heats up within Tequila’s high end, following Pernod Ricard’s takeover of Avión Tequila in 2014 and Diageo’s acquisition of George Clooney-backed brand Casamigos in 2017. Bacardi is also making a play in the super-premium Tequila segment with its Cazadores brand, which grew 17.2% to nearly 350,000 cases in the U.S. last year. The U.S. market’s overall Tequila category was up 7.5% to just under 17.4 million cases in 2017, with the luxury tier (above $40 a 750-ml.) rising by 11% and the super-premium segment ($25-$40) up 13.5%. —Christina JelskiSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.