Bacardi expands portfolio with 42 Below acquisition

by Melanie Godsell, Marketing 04-Oct-06

Bacardi is in the process of acquiring the New Zealand spirits company 42 Below, whose portfolio includes four flavoured vodkas as well as Stil Vodka, South Gin and the 420 Spring Water brand.

The firm plans to invest substantially in the brands, which will join
its stable of Bacardi, Martini & Rossi, Grey Goose and Bombay Sapphire.
The deal is worth $91m (£48.6m).

42 Below is currently rolling out Seven Tiki white rum and Tahiti Dark

rum to the UK on-trade. Negotiations are also under way to gain listings

in the major multiples.

A spokeswoman for 42 Below said there would be no conflict between Seven
Tiki and Bacardi because the former is a super-premium brand, which is
aimed at a more discerning market.

42 Below has courted controversy in the past with its online ads, which
have mentioned Ukranians who 'live close to Chernobyl' and poked fun at
the Italians and French. It has also described Britain as the 'shining,
ginger-headed jewel of the Atlantic' and Prince Philip as the
'grandfather Kiwis never had because all ours were shot dead at
Gallipoli'.

Separately, the Bacardi-Martini division has extended its agreement with
Brown-Forman Beverages Europe to distribute each other's brands until
2012.

The two companies, in a partnership called Bacardi Brown-Forman Brands,
have also secured the UK distribution rights for liqueur brands Tuaca
and Chambord from Danes and Malcolm Cowen respectively. It plans to
extend the on- and off-trade presence of both brands.

Tuaca, a brandy-based drink, is already available in 700 bars across the
UK.