Bacardi Takes Over Patrón Tequila in $5.1 Billion DealWritten by David MasifonPosted on 01 23, 2018
The Patrón brand was founded in 1989 by Californian entrepreneur John Paul DeJoria, co-founder of Paul Mitchell hair products.
The brand launched at an outrageous price of $37 a bottle, blazing the trail for the ultra-premium tequila range. Since then, it has grown to become the industry’s leader, with $1.6 billion in sales in the US in 2016, as reported by Euromonitor. Patrón produces over 36 million bottles of Tequila a year.
“We started this business more than a quarter century ago with a singular mission – to create an ultra-premium, luxury Tequila,” DeJoria said.
“Today, with that continued commitment to quality, we produce more than three million cases of distilled spirits annually that are enjoyed around the world,” he added.
“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,” said Facundo L. Bacardi, chairman of Bacardi Limited.
“It has been a privilege being a partner for a number of years with a remarkable entrepreneur like John Paul DeJoria. His vision, integrity, and courage are responsible for introducing the world to perfect Tequila.
“As we move forward together, we will continue to pursue perfection as the guiding light in everything Patrón stands for,” he added.
Despite the takeover by Bacardi, the Patrón CEO Edward Brown, COO David R. Wilson, and CMO Lee Applbaum, will continue in their roles. DeJoria will serve as an ambassador for Patrón in the role of chairman emeritus.
Bacardi, owners of Grey Goose vodka, Bombay Sapphire gin and Martini sparkling wines, is still controlled by its founding family. Mahesh Madhavan took over as CEO last October to run the company’s daily operations.
The growth of Patrón in the last 27 years has been pivotal in changing the perception of Tequila. The drink was once considered as a cheap drink to do shots with, it is now floated as a sipping spirit for tasteful drinkers.
With music stars like Bruno Mars and P Diddy name-checking Patrón in songs and Tom Cruise famously ordering it post car crash in the club scene in Vanilla Sky, it is a testament of how well the premium offering of the brand has grown respect for tequila.
Today, Patrón is the world’s highest-selling ultra-premium Tequila brand. It accounts for 70% of sales in the category, beating its nearest competitor in the US by eight-to-one with an annual production of 3 million cases.
Patrón tequila follows the centuries old tahona process in production. The rigorous method sees a stone wheel crush the blue weber agave fibers. The extracted juice is then fermented in pine casks.