BACARDI’S PLANS FOR ABSOLUT
Yesterday, Bacardi chief Andreas Gembler sat down for an interview with Jenny Wiggins of the London Financial Times. The first half of the article focused mainly on the chief’s background and the history of Bacardi, but towards the end Andreas let some inside information drop. Here are the highlights:
In the article, Andreas makes it clear that Bacardi is looking to become “a bit more professional,” mainly to help the company compete more effectively with the likes of Diageo and Pernod Ricard. A more professional setting would certainly help the company prepare if it ever decides to go public, but would also better position Bacardi to purchase Vin & Sprit (Absolut) in the not too distant future.
[Ed. note: Earlier this month Andreas wrote a letter to the Swedish government expressing interest in buying Absolut, and also told the Financial Times that Absolut would be "a terrific fit" for the privately-owned spirits giant.]
If, IF Bacardi were to succeed, purchasing Absolut would automatically spearhead the privately-owned group into the second largest spirits company behind Diageo.
Purchasing Vin & Sprit won’t come cheap. Any future Absolut acquisition is currently estimated at $6 billion; however, coughing up the money may only be the first step in getting the prize. Andreas told FT that the Swedish government will likely take a close look at what any potential buyers plan on doing with the brand, because, as he put it, “Absolut is a Swedish icon.”
In addition to the high profile Absolut brand, Bacardi is working to improve its portfolio overall. That includes slowly ridding itself of RTDs (Bacardi Breezer), and replacing them with super-premium products. Bacardi’s recent purchase of the New Zealand vodka, 42 Below, falls under the super-premium destination, not to mention Grey Goose and Bombay Sapphire.
Two things that Bacardi is currently lacking? Cognac and an American whiskey. According to FT, “Mr. Gembler says Bacardi could expand into other kinds of spirits, and that it would like to own a cognac and an American whiskey - to cash in on the increasing popularity of the category.”
In the article, Andreas makes it clear that Bacardi is looking to become “a bit more professional,” mainly to help the company compete more effectively with the likes of Diageo and Pernod Ricard. A more professional setting would certainly help the company prepare if it ever decides to go public, but would also better position Bacardi to purchase Vin & Sprit (Absolut) in the not too distant future.
[Ed. note: Earlier this month Andreas wrote a letter to the Swedish government expressing interest in buying Absolut, and also told the Financial Times that Absolut would be "a terrific fit" for the privately-owned spirits giant.]
If, IF Bacardi were to succeed, purchasing Absolut would automatically spearhead the privately-owned group into the second largest spirits company behind Diageo.
Purchasing Vin & Sprit won’t come cheap. Any future Absolut acquisition is currently estimated at $6 billion; however, coughing up the money may only be the first step in getting the prize. Andreas told FT that the Swedish government will likely take a close look at what any potential buyers plan on doing with the brand, because, as he put it, “Absolut is a Swedish icon.”
In addition to the high profile Absolut brand, Bacardi is working to improve its portfolio overall. That includes slowly ridding itself of RTDs (Bacardi Breezer), and replacing them with super-premium products. Bacardi’s recent purchase of the New Zealand vodka, 42 Below, falls under the super-premium destination, not to mention Grey Goose and Bombay Sapphire.
Two things that Bacardi is currently lacking? Cognac and an American whiskey. According to FT, “Mr. Gembler says Bacardi could expand into other kinds of spirits, and that it would like to own a cognac and an American whiskey - to cash in on the increasing popularity of the category.”
posted at 4:05 PM
<< Home