Home Business News Bacardi buys tequila maker Patron in $5.1bn deal

Bacardi buys tequila maker Patron in $5.1bn deal

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Alcohol giant Bacardi has said it will buy tequila maker Patron, as demand grows for high-end versions of the spirit around the world.Bacardi says the deal values Patron at about $5.1bn (£3.6bn).Best known for its rum, Bacardi took a minority stake in the tequila firm a decade ago and the two companies have worked closely together since then.Bacardi already owns the Cazadores and Corzo tequila brands and is the world’s biggest privately-owned spirits firm.According to recent data by research firm IWSR, the Patron deal makes Bacardi the top spirits maker in the so-called super-premium segment of the US market and the second largest spirits company in the market by value.A recent market report by the UK’s Wine and Spirit Trade Association (WSTA) found annual tequila sales in the UK grew 5% in 2016 to $18.1m.Much like the recent boom in gin brands and gin cocktails, the WSTA said tequila was now being consumed in a completely different way. It said the trend had moved away from drinking tequila as a shot to “high quality, cocktail combinations and sophisticated sipping products”.Last year, George Clooney’s tequila company Casamigos was sold to drinks giant Diageo in a deal worth $1bn.Bacardi was founded in Cuba in 1862 with a focus on rum making. Today it holds brands including Grey Goose vodka, Dewar’s whisky and Bombay Sapphire gin.
Source: BBC