PERNOD RUMORED TO OFFER PREMIUM PRICE FOR TEQUILA HERRADURA
Brown-Forman and Bacardi are the competing forces against Pernod in the quest to take control of Tequila Herradura, one of the largest tequila makers in Mexico. Herradura – which has been on the market since April – has reportedly reached its final bidding days and could go for close to $800 million.
“In the US it's a toss up between whether rum or tequila will be the next "big thing" so Herradura is selling out at the right time in case Rum wins,” said a beverage industry analyst.
THIS COULD GET INTERESTING. Pernod is second only to Diageo as the largest wine and spirits company in the world, and Diageo, as you known, owns Jose Cuervo – the world’s most popular tequila. Herradura would certainly bolster Pernod’s white spirits portfolio, already dominated by Stolichnaya vodka – which the Russian government recently dropped the claims to – and Beefeater gin, and perhaps help the French company become a larger tequila player. If Pernod succeeds in introducing a worthy adversary to Diageo’s Cuervo, well, there could be some share points involved.
Herradura is one of the biggest tequila producers in Mexico, but has a much smaller international business than rival Jose Cuervo. With the right marketing and brand exposure, who knows what could happen. It’s wild thinking, I understand, but just speculation after all. Amassing rumors suggest that Pernod is willing to pay a premium price for the underdog tequila so as to get a foot in the Mexican market.
Bacardi, already a huge fixture in the white spirits scene, would do well to gain another mixing brand since margaritas and mojitos are the most popular cocktails. Brown-Forman already has the brown spirits market cornered with Southern Comfort and Jack Daniels, and is perhaps looking to expand their horizons.
White spirits consumption has been on the rise across the globe with tequila acting as one of the best performing spirits. That being said, all three companies are certainly looking to move up in the industry, but as of press time, WSD is not aware of any frontrunners.
“In the US it's a toss up between whether rum or tequila will be the next "big thing" so Herradura is selling out at the right time in case Rum wins,” said a beverage industry analyst.
THIS COULD GET INTERESTING. Pernod is second only to Diageo as the largest wine and spirits company in the world, and Diageo, as you known, owns Jose Cuervo – the world’s most popular tequila. Herradura would certainly bolster Pernod’s white spirits portfolio, already dominated by Stolichnaya vodka – which the Russian government recently dropped the claims to – and Beefeater gin, and perhaps help the French company become a larger tequila player. If Pernod succeeds in introducing a worthy adversary to Diageo’s Cuervo, well, there could be some share points involved.
Herradura is one of the biggest tequila producers in Mexico, but has a much smaller international business than rival Jose Cuervo. With the right marketing and brand exposure, who knows what could happen. It’s wild thinking, I understand, but just speculation after all. Amassing rumors suggest that Pernod is willing to pay a premium price for the underdog tequila so as to get a foot in the Mexican market.
Bacardi, already a huge fixture in the white spirits scene, would do well to gain another mixing brand since margaritas and mojitos are the most popular cocktails. Brown-Forman already has the brown spirits market cornered with Southern Comfort and Jack Daniels, and is perhaps looking to expand their horizons.
White spirits consumption has been on the rise across the globe with tequila acting as one of the best performing spirits. That being said, all three companies are certainly looking to move up in the industry, but as of press time, WSD is not aware of any frontrunners.
posted at 3:23 PM
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