There can be only one. Consolidation continued today in the booze world. Bacardi Limited announced a $5.1 billion deal to acquire 100% ownership of Patrón Spirits International AG and its PATRÓN® brand.
Patrón is “the world’s top-selling ultra-premium tequila” according to a statement from Bacardi. “This transaction will make Bacardi the number one spirits player in the super-premium segment in the U.S. and the second largest spirits company in market share by value in the critically important United States market.”
In addition to the new pickup, the Bacardi portfolio features 200 brands and labels, including their namesake rum, Grey Goose vodka, Dewar’s Blended Scotch whisky, Bombay gin, Martini vermouth and sparkling wines, Cazadores 100% blue agave tequila, and other leading and emerging brands including Eristoff vodka, and St-Germain elderflower liqueur.
“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, increasing scale in the U.S. and globally,” said Mahesh Madhavan, CEO of Bacardi Limited. “I look forward to working with the talented team at Patrón.
Bacardi noted that they will keep on the existing Patrón leadership team including Chief Executive Officer Edward Brown, Chief Operating Officer David R. Wilson, and Chief Marketing Officer Lee Applbaum. Founder John Pau DeJoria will be granted the title of Chairman Emeritus and continue to serve as a public face as a brand ambassador.
The deal is subject to final okays on the paperwork, but no substantial obstacles are anticipated.