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Bacardi Takes Over Patrón Tequila in $5.1 Billion Deal

Patron_Tequila | www.drinks.ng
Global spirits producer, Bacardi is set to acquire ultra-premium Tequila brand Patrón in a deal worth $5.1 billion.
The acquisition automatically becomes the most expensive deal involving a spirits brand, eclipsing the Diageo / Casamigos deal by $4.1bn.
Popular for its rum, Bacardi has held a 25 per cent stake in Patrón Spirits International AG for nearly 10 years. The Bermuda-based company now intends to take over full ownership of the brand, with plans for a widespread distribution globally as the market for premium tequila grows rapidly.
The Wall Street Journal reports that both companies are expected to make an official announcement on as early as Monday as regards the transaction.

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.

Patron_Tequila | www.drinks.ng
Posted inNews updates

Bacardi Takes Over Patrón Tequila in $5.1 Billion Deal

Posted on 01 23, 2018

Global spirits producer, Bacardi is set to acquire ultra-premium Tequila brand Patrón in a deal...

Read More
Posted on

7 Secrets You Should Know About Tequila

Tequila Day | www.drinks.ng

In four days we will be celebrating the Tequila Day, and people who love the drink the world over will get the fun out of lime, salt and shots of Tequila.

Tequila is a special drink from Mexico made from agave plants.It takes its name from a small town of Tequila in a valley west of Guadalajara in Jalisco, Mexico. It was called mezcal wine  before the coming of Europeans to Mexico.

Many names on labels today were the very first commercial producers of tequila. Jose Antonio Cuervo held the first license for manufacturing tequila, courtesy of the King of Spain. He was friends with Don Cenobio Sauza and Félix López, also producers of tequila, whose businesses continue in some form today.

The drink can be enjoyed straight like a good whisky, or mixed in cocktails. However, while you stretch out to enjoy your tequila on the 24th of July, here are a few secrets about the drink you should know:

What Tequila Really Means

Tequila is not just gotten from the name of a village, it has meaning that is somewhat linked to what it is made from. The name comes from the Nahuatl (Aztec) word which means “the place where plants are harvested,” or possibly “the place where a lot of work is done.”

Not all agave-based spirits are tequila

All tequilas must be made in the Mexican state of Jalisco and in some municipalities in Guanajuato, Michoacan, Nayarit, and Tamaulipas. Any agave-based distilled spirit outside those regions are called “mezcal.”

How is Tequila made?

Tequila is made from the fructose-rich pina (heart) of the agave succulent, which resembles a pineapple. It is then roasted or steamed to release sugars for fermentation.The piñas are cut into similar-sized pieces, by hand, to ensure even baking. After that, they’re tossed into small brick ovens, where they’re slow steamed for 79 hours per oven. To get to the juice, the agave is crushed using two different methods to diversify flavors.

Tequila does NOT contain psychedelic properties

As against the 1950s claim by California residents that tequila contained psychedelic properties, the drink does not. They were merely confusing mezcal (which is what tequila is) with mescaline (which is the psychoactive alkaloid of the peyote plant).

Tequila also gets better with age

Just like wine, whiskey and cognac, tequila also gets better with age. When unopened, a bottled tequila can stay up to three years and still fresh on the palate.

Tequila has no worms

The claim of worms in tequila bottles started in the 1940s. A few brands started claimed that worms in tequila bottles acted as aphrodisiacs and had magical qualities as part of a marketing ploy. As you can guess, tequila does not have a worm in its bottle. The worm, or gusano, is associated with mezcal.

Tequila is equal to blue agave alone

All tequila is mezcal, but not all mezcal is tequila. Tequila can only be made from the blue agave, or agave tequilana, but mezcal can be made from over 30 varieties of agave. However, it does not have to be 100% agave. Many tequilas will advertise themselves as ‘100% Blue Agave,’ but the legal requirement is 51%.

 

 

 

 

 

 

 

 

Tequila Day | www.drinks.ng

7 Secrets You Should Know About Tequila

Posted on 07 20, 2017

In four days we will be celebrating the Tequila Day, and people who love the...

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