Interview, Part 1: Bacardi’s Tony Latham On What’s In Store For 2024

Bacardi ranks as the fifth-largest spirits marketer in the U.S. by volume at approximately 17.8 million cases, according to Impact Databank, up from 16.4 million cases in 2020.Known for top-selling brands like its flagship rum, Patrón Tequila, Grey Goose vodka, Bombay Sapphire gin, and Dewar’s Scotch whisky, the portfolio also includes an array of labels like Angel’s Envy Bourbon, Ilegal mezcal, D’Ussé Cognac, and St-Germain liqueur, among others. As the U.S. spirits market continues to see significant shifts in consumer trends driving the business, SND executive editor Daniel Marsteller caught up with Bacardi North America president Tony Latham to get a view on where things are headed in the new year.

SND: What key consumer trends does Bacardi see shaping the U.S. spirits market in 2024?

Latham: One significant trend is the sustained popularity of premium spirits despite economic fluctuations. Premium spirits continue to thrive, supported by a preference for fewer, higher-quality drinks that offer a taste of luxury. There’s also a widespread inclination among consumers, especially younger demographics—including 41% of those aged 21–44 in the U.S.—to seek out more premium spirits next year.

This year marks not just an evolution but a transformation. It’s an opportunity to introduce new innovation and experiences centered on social connections. People are embracing change, redefining their values, and they’re reshaping drinking culture with a focus on flexitarian consumption, reimagined no- and low-alcohol choices, and sustainability.

SND: Where in the portfolio do you see marked opportunity for expansion?

Latham: When it comes to Bacardi-owned brands, there’s a clear opportunity for growth in the U.S., especially in the agave category, which is stealing the show globally as the go-to choice for premium drinks. Patrón is playing an important role in the on-premise, where consumers are seeking breakthrough experiences. That’s evidenced by recent share gains. Consumers are gravitating to Patrón El Alto ($179) as they mark special occasions and experiences.

Our recent acquisition of Ilegal mezcal presents another tremendous growth opportunity in the U.S. The super-premium-plus mezcal category is growing at a fast pace and is expected to continue at a CAGR of 16% over the next five years. At 86% of global market share, the United States dominates the super-premium mezcal category.

SND: How is Bacardi innovating in the low- and no-alcohol space?

Latham: We’re seeing a rise of the ‘Sipping Spectrum,’ where consumers are experimenting with their ABVs and redefining No-Lo serves, placing an emphasis on quality, flavor, and social connections. Martini & Rossi is harnessing this trend with a non-alcoholic aperitivo range—including Floreale and Vibrante expressions ($20 a 750-ml.)—offering unique flavors tailor-made for the no-alcohol crowd. It’s getting recognition among the best bartenders worldwide. This is a fast-growing sector, projected to hit $359 million by 2026, outpacing traditional alcohol’s growth. People are adopting this flexible approach, choosing No-Lo drinks whenever they feel like it, not just on specific occasions.

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