Bacardi is to acquire iconic Mexican tequila brand Patrón for $5.1 billion.
According to family-owned Bacardi, Patrón is the world’s top-selling ultra-premium tequila and makes Bacardi the biggest spirits company in the US’ super-premium segment.
It comes amid rapid growth within tequila, less than a week after Pernod Ricard acquired the remaining stake in tequila brand Avión and seven months since Diageo paid $1 billion for George Clooney’s tequila brand Casamigos.
The deal ties up Bacardi’s relationship with Patrón, almost a decade after Bacardi’s initial acquisition of a significant minority stake.
Patrón co-founder John Paul DeJoria said: “We started this business more than a quarter century ago with a singular mission – to create an ultra-premium, luxury tequila. Today, with that continued commitment to quality and several other extraordinary brands in our portfolio, we produce more than three million cases of distilled spirits annually that are enjoyed around the world. I am proud of what our entire organisation has accomplished, and the work we do in giving back to the people and communities in which we operate.”
“Patrón is more than just a brand we have built,” president and CEO Edward Brown added. “It has been a personal passion for nearly 20 years. I truly consider the Patrón team my extended family. As Bacardi has had an ownership stake in Patrón for almost a decade now, and truly knows and appreciates our unique business, they are the best and most logical steward to continue our pursuit of perfection.”
Bacardi CEO Mahesh Madhavan said Bacardi would seek to exploit the “tremendous opportunity” that exists for Patrón in markets beyond the US, utilising Bacardi’s international distribution network to help grow Patrón around the world.
Patrón’s leadership team, including chief executive Edward Brown, chief operating officer David R Wilson and chief marketing officer Lee Applbaum, will continue in their roles. Co-founder DeJoria will also serve as an ambassador for Patrón in the role of chairman emeritus, working with Bacardi to advance their combined efforts towards social and environmental projects.
Bacardi chairman Facundo L Bacardi said: “Patrón and Bacardi were both founded on the principles of quality, integrity, and innovation, and driven by a sense of fearlessness – it’s in our DNA. It has been a privilege being a partner for a number of years with a remarkable entrepreneur like John Paul DeJoria. John Paul’s vision, integrity, and courage are responsible for introducing the world to simply perfect tequila. As we move forward together, we will continue to pursue perfection as the guiding light in everything Patrón stands for.”
The companies expect the deal will close during the first half of the year.
© FoodBev Media Ltd 2019