MEXICO: Tequila Herradura on the market - report

By just-drinks.com editorial team | 7 April 2006

Mexican distiller Tequila Herradura is reportedly seeking a buyer, news that is likely to interest a number of global distillers.

A report in the Wall Street Journal today (7 April) said analysts had suggested the company's flagship Herradura brand could fetch a price tag of US$650-750m, particularly given the potential of the Tequila category in the US where it is one of the fastest growing spirits segments.

The brand is known both for its premium anejo and reposado Tequilas as well as its standard brand Jimador.

Companies expected to show an interest in Herradura include Bacardi, Constellation Brands and Brown-Forman all of which own Tequila brands already but are thought to be keen to expand in the category.

Pernod Ricard, which reluctantly sold Sauza Tequila to Fortune Brands last year as part of the Allied Domecq takeover, is said to be keen to add a Tequila to its burgeoning spirits stable. Chairman and CEO Patrick Ricard said when the Allied takeover bid was announced last April that it would have been "a dream" to retain Sauza.

However, a spokesman for the French drinks giant declined to comment on the speculation surrounding Herradura when contacted by just-drinks today.

Sectors: Spirits

Companies: Allied, Bacardi, Constellation, Brown-Forman, Pernod, Fortune Brands