Olly Wehring

Comment - Bacardi's Cognac Ends Beam Tag-Team

By | 16 March 2012

I shifted my money off Bacardi's square today. For what it's worth, I don't think the firm is in the Beam Inc picture anymore.

If, indeed, there still is a Beam picture nowadays. We'll come back to that.

Bacardi's announcement earlier this week that it will launch “a new expression in Cognac in the US in the early-summer”, puts paid to those rumours suggesting the firm would consider playing Robin to Diageo's Batman in a swoop for Beam. While Diageo would love to get its hands on the cash cow that is Jim Beam, anti-trust regulations would pressure the drinks giant to choose between its stake in Moët Hennessy and Beam's Courvoisier Cognac brand.

Enter Bacardi – or so the theory goes.

It would appear, however, that Bacardi is not prepared to wait for a 'phone call from Diageo. Rather, it'll release its own Cognac brand – one that's “very smooth and sets it apart from other Cognacs”, I'm told - in the US later this year instead of court Courvoisier.

Hence, my bet is off.

Oh, and my reference earlier to a fading Beam picture?

Well, the higher the company's share price gets, the more feint the picture gets.

Expert analysis

Global market review of brandy and Cognac – forecasts to 2016

At over 26,000 words, containing over 40 tables, IWSR's proprietary brand volumes and market forecasts, exclusive interviews with the top global brands, and including all the invaluable insight you have come to expect from the drinks publishing experts IWSR and just-drinks, this report is essential reading and provides fundamental market and brand data for your market planning and analysis work on this category.

Sectors: Mergers & acquisitions, Spirits

Companies: Bacardi, Diageo, Beam Inc

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