NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / Bacardi to acquire premium tequila-maker Patron for $5.1 billion
    Next Article
    Bacardi to acquire premium tequila-maker Patron for $5.1 billion

    Bacardi to acquire premium tequila-maker Patron for $5.1 billion

    By Shiladitya Ray
    Jan 23, 2018
    08:39 pm

    What's the story

    With demand for high-end tequila growing across the world, alcohol giant Bacardi announced yesterday that it would be buying premium tequila-maker Patron Spirits International AG for a deal worth $5.1 billion.

    The acquisition is the first one under Indian-born CEO Mahesh Madhavan, who was appointed as Bacardi CEO by the family which owns it in October 2017.

    Here's more.

    Historical

    Bacardi's 156-year-long journey

    Bacardi was founded in 1862 by Don Facundo Bacardi Massó in Cuba. Initially founded as a rum-making company, Bacardi now owns over 200 brands and labels, employs over 6,000 people, and is the world's largest privately-held, family-owned spirits company.

    Tequila demand

    The world has seen a growing demand for tequila lately

    According to recent data by alcoholic beverage research firm IWSR, the global market for alcoholic drinks shrank by 1.3% in 2016.

    Yet, demand for tequila saw a 5.2% increase in the same year.

    Similarly, a recent market report by the UK's Wine and Spirits Trading Association (WTSA) said that annual tequila sales had increased by 5% in the UK in 2016.

    Quote

    Patron acquisition will increase scale globally

    "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 Patron around the world, increasing scale in the U.S. and globally," said Bacardi CEO Mahesh Madhavan.

    Tequila consumption

    How tequila consumption has changed of late

    The WTSA said that the rising demand for tequila, which saw an average annual growth rate of 6% since 2002, also corresponded with a recent boom in gin brands and gin cocktails.

    The WTSA further added that tequila too was being consumed in a different way now - instead of the traditional shots, people now prefer "high quality, cocktail combinations and sophisticated sipping products."

    Do you know?

    Where the Patron acquisition puts Bacardi

    Research firm IWSR added that Bacardi's acquisition of Patron would make the company the top spirits maker in the super-premium segment of the US market, and the second largest spirits company in the US market by value.

    Market competition

    Alcoholic beverages giant compete for tequila market domination

    Given the spurt in demand for tequila, alcoholic beverages multinationals are strengthening their positions in the market.

    Last year, British alcoholic beverage giant Diageo plc acquired George Clooney's tequila company, Casamigos, for $1 billion.

    Bacardi, on the other hand, already owns premium tequila brands like Cazadores and Corzo, and is looking to further strengthen their position through the acquisition of Patron.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    George Clooney
    United States of America

    Latest

    Google releases Android 16 beta with Material 3 Expressive design Google
    'New Waqf law designed to rob Muslims...': Kapil Sibal Kapil Sibal
    Army denies deploying air defense guns at Golden Temple Golden Temple
    Heavy rain expected in 10+ states; check details  Delhi

    George Clooney

    Meryl Streep lambasts Donald Trump Donald Trump
    Actor George Clooney's tequila business sold for $1bn Hollywood

    United States of America

    Will the 'swadeshi' Patanjali go global with Louis Vuitton's help? Patanjali
    After Trump withdraws military aid, Pakistan stops intelligence co-operation Pakistan News
    Bill for increasing green card allocation introduced in US H-1B Visa
    Washington renames Russian embassy street after murdered Russian politician Washington DC
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025