BACARDI TAKES ON REGIONAL BRAND

Bacardi announced plans to acquire New Zealand spirits company 42 Below for about $91 million in an all-cash deal. Shareholders and employees have expressed their support of the takeover, which Bacardi is expected to formally launch in the coming weeks in accordance with the New Zealand Stock Exchange rules. Its brands include four flavored vodkas - Manuka Honey, Kiwifruit, Feijoa and Passionfruit – along with the newly developed products South Gin, Stil Vodka, Seven Tiki White Rum, Tahiti Dark Rum and 420 spring water. 42 Below is currently distributed in more than 25 countries, as well as regarded as one of New Zealand’s fastest growing exports.

It’s an interesting tactic to go for regional spirits brands, especially in such a small country as New Zealand. However, in the absence of global spirits brands for sale – other than the anticipated sale of Absolut’s Vin Sprit – we’re likely to see more companies going the regional route.

“Bacardi is acquiring young premium brands in 42 Below,” said Bacardi president and CEO Andreas Gembler. “With substantial investment by our company, 42 Below brands show long-term potential in the global spirits industry with a particular focus on the growing Asia Pacific markets.”