How will 2024 treat Bacardi? - CEO Mahesh Madhavan speaks exclusively to Global Drinks Intel

Global Drinks Intel: What was your overriding takeaway from 2023?

Bacardi CEO Mahesh Madhavan: How fortunate we are at Bacardi. First, being family owned gives us a different perspective in times like these. While others are forced to look at what makes a difference in the short term, we continue to focus on what will drive long-term sustainable growth for the company.

Secondly, the breadth and depth of our portfolio means that as trends come and go and tailwinds turn to headwinds, we have leading brands that are known and loved for their quality and taste and consumers continue to choose when they are sharing moments that matter.

GDI: Which industry development surprised you the most last year?

MM: We knew the popularity of no- and lower-alcohol options was on the rise – it’s a trend that we’ve embraced and been a part of for a few years. In 2023, the growing interest in NoLo created a new spritz sensation. The St-Germain Hugo Spritz became a cultural phenomenon with nearly 290m views on TikTok and a 500% spike in search volume in the first half of the year, according to Google.

From its homeland of France to markets across Western Europe, the St-Germain Spritz is becoming the go-to cocktail for the new generation of NoLo consumers.

GDI: Which consumer group will be your main focus next year?

MM: We continue to prioritise our premium portfolio of brands. Even in challenging times, we see consumers looking to treat themselves with small luxuries, and that includes their choice of spirits. The rise of premiumisation is an ongoing trend across categories including tequila, mezcal, rum, whiskies – and that’s good news for our family of brands with names like Patron, Ilegal Mezcal, Bacardi rum and our range of whiskies and single malts.

Premium spirits are top of mind for younger cohorts too, with more than 40% of US respondents to our recent survey seeking more premium spirits this year.

GDI: Which of the brands in your portfolio do you expect to grow the fastest this year?

MM: In Patron, we have the hottest brand in the hottest category. Tequila is hot for a variety of reasons, including people seeing the versatility of the spirit and the expansion of premium blends. It’s growing in popularity not just within its largest market of the US, but also beyond.

There’s a growing interest internationally in the craftsmanship and quality of Patron that lends itself to premium launches and we see the greatest traction within the premium segment. With our successful launch of Patron El Alto [in late 2022], we entered the prestige category – a segment forecast to double in size by 2025, which we followed with the equally successful launch of Patron El Cielo [in April last year] – our prestige silver tequila.

GDI: What’s your biggest business worry for the year ahead?

MM: Like all businesses, we continue to watch the economic headwinds. However, I’m always inclined to be positive in my outlook and I’m hopeful that by the end of this year, we’ll be in better shape than 2023 with consumer confidence continuing an upward trend.

That confidence translates to people enjoying affordable luxuries – from enjoying a night out to purchasing a premium spirit for the at-home occasion.