Bacardi has scooped up Patron in a deal that instantly makes it a major player in the booming tequila market. The deal values Patron at $5.1 billion and is expected to close in the first half of the year. Privately-held Bacardi previously had a 30% stake in Patron Spirits International AG for nearly a decade.
The deal will make Bacardi the number one spirits company in the super-premium segment in the United States, referring to the most IWSR data. It would also make Bacardi the second largest spirits company in market share by value in the U.S market.
Bacardi has also Grey Goose Vodka, Bombay Sapphire, Dewars, Martini and premium tequila maker Cazadores and Corzo.
Tequila is one of the fastest-growing and most attractive categories in the spirits industry. In 2016, 15.9 million nine-liter cases were sold in the U.S., according to the latest data from Distilled Spirits Council.
Since 2002, tequila volumes have grown with an average rate of 5.8% per year. Seems obvious for Bacardi to make this step and complete the tequila family portfolio.
Tequila competition is growing as more brands flood the market and big players step up their game in hopes of grabbing a bigger piece of the high-end pie. Diageo, for instance, acquired George Clooney’s high-end Casamigos tequila brand last year in a deal reported to be worth about $1 billion.
Patron was founded by entrepreneurs John Paul DeJoria and Martin Crowley with a mission to create a tequila that was “simply perfect,” a philosophy that continues to guide the business today.
We started this business more than a quarter century ago with a singular mission – to create an ultra-premium, luxury tequila. Patrón is more than just a brand we have built; it has been a personal passion for nearly 20 years.
John Paul DeJoria, co-founder of Patron.
Patron tequila is produced from the highest-quality Weber Blue Agave, distilled through time-honored processes with meticulous precision and care, and delivered in the iconic bottles.
Adding Patron 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 the tequila around the world.
The Patron leadership team, including CEO Edward Brown, COO David R. Wilson, and CMO Lee Applbaum, will continue in their roles.