TALKS OF THE BACARDI FAMILY GOING PUBLIC
Is Bacardi going public? Bacardi Ltd. has spoken to a number of investment bankers about a public stock offering that would end almost 150 years of family control, according to the UK’s Sunday Times. Family members have been split over the issue in the past, but now believe it is necessary for Bacardi to compete with increasingly growing rivals – such as Diageo, Pernod and Fortune Brands.
The Sunday Times points out that Bacardi’s recent hiring of outsiders to fill executive positions is the first step in going public. Currently, Bacardi is the largest privately held spirits company in the world with such brands as Bacardi, Grey Goose and Bombay Sapphire.
In other news, Bacardi has reportedly applied for a trademark for Cuatro Veintos, identified in the trademark applications as tequila, in addition to pursuing Tequila Herradura along with Pernod and Brown-Forman. Apparently Bacardi wants to move past rum and include tequila in its portfolio. Already Bacardi has reached a “coexistence agreement” with a Chilean vintner that gives Bacardi the right to use the “Cuatro Veintos’ name in the US for tequila, while the Chilean company can use it for wine.
Tequila, rum and vodka are hot products right now, boding nicely in the current cocktail craze. If Bacardi can get hold of a leading tequila brand, it would become an even bigger contender in the spirits industry with its already vastly popular vodka and rum brands. Two years ago the company took a big leap with the $2 million purchase of Grey Goose vodka, which demonstrates their perseverance in extending their portfolio to particularly upscale products. Newly appointed CEO of Bacardi USA John Esposito brings a vast experience with high-end brands including Dom Perignon, Grand Marnier and Belvedere vodka.
SET TO RELAUNCH HAVANA CLUB. After the US patent authorities ruled last week that the Cuban government’s registration of the Havana Club trademark had “cancelled/expired,” the Cuban government has lost all rights to Bacardi. The decision was made a week after the US Treasury’s Office of Foreign Assets Control (OFAC) blocked a Cuban government move to renew the trademark registration.
As you may remember, Bacardi has long claimed Havana Club brand and its assets were illegally confiscated from its original owners, Jose Arechabala, by the Cuban government.
In 1993, the Cuban government formed a joint-venture, Havana Club International, with Pernod Ricard to produce and market the brand globally outside the US, where the trade embargo blocked the sale of Cuban products. Since then, Bacardi and Pernod have fought over the rights to Havana Club in the US, leading them all the way to the Supreme Court which ultimately ruled that the Pernod/Cuban partnership has no rights to the trademark.
The rum will be marketed as a premium product at the same level as Grey Goose vodka. The rollout will initially take place in the Florida market, where Havana Club is already available in limited quantities, while a national Havana relaunch is yet undecided.
The Sunday Times points out that Bacardi’s recent hiring of outsiders to fill executive positions is the first step in going public. Currently, Bacardi is the largest privately held spirits company in the world with such brands as Bacardi, Grey Goose and Bombay Sapphire.
In other news, Bacardi has reportedly applied for a trademark for Cuatro Veintos, identified in the trademark applications as tequila, in addition to pursuing Tequila Herradura along with Pernod and Brown-Forman. Apparently Bacardi wants to move past rum and include tequila in its portfolio. Already Bacardi has reached a “coexistence agreement” with a Chilean vintner that gives Bacardi the right to use the “Cuatro Veintos’ name in the US for tequila, while the Chilean company can use it for wine.
Tequila, rum and vodka are hot products right now, boding nicely in the current cocktail craze. If Bacardi can get hold of a leading tequila brand, it would become an even bigger contender in the spirits industry with its already vastly popular vodka and rum brands. Two years ago the company took a big leap with the $2 million purchase of Grey Goose vodka, which demonstrates their perseverance in extending their portfolio to particularly upscale products. Newly appointed CEO of Bacardi USA John Esposito brings a vast experience with high-end brands including Dom Perignon, Grand Marnier and Belvedere vodka.
SET TO RELAUNCH HAVANA CLUB. After the US patent authorities ruled last week that the Cuban government’s registration of the Havana Club trademark had “cancelled/expired,” the Cuban government has lost all rights to Bacardi. The decision was made a week after the US Treasury’s Office of Foreign Assets Control (OFAC) blocked a Cuban government move to renew the trademark registration.
As you may remember, Bacardi has long claimed Havana Club brand and its assets were illegally confiscated from its original owners, Jose Arechabala, by the Cuban government.
In 1993, the Cuban government formed a joint-venture, Havana Club International, with Pernod Ricard to produce and market the brand globally outside the US, where the trade embargo blocked the sale of Cuban products. Since then, Bacardi and Pernod have fought over the rights to Havana Club in the US, leading them all the way to the Supreme Court which ultimately ruled that the Pernod/Cuban partnership has no rights to the trademark.
The rum will be marketed as a premium product at the same level as Grey Goose vodka. The rollout will initially take place in the Florida market, where Havana Club is already available in limited quantities, while a national Havana relaunch is yet undecided.
posted at 3:22 PM
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