Bacardi buys Kiwi vodka brand

Joe Bates

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In a surprise move Bacardi, the world¹s largest rum manufacturer, has snapped up hip Kiwi vodka brand 42 Below

Bacardi has bought award-winning New Zealand vodka brand 42 Below for a NZ$138m ($31m) cash sum.

The deal covers the core 42 Below brand, which was launched in 1998 by ex-advertising executive Geoff Ross and named after the distillery¹s location below the equator, as well as four flavours ‹ Manuka Honey, Kiwifruit, Feijoa and Passionfruit. The Auckland-based firms other brands including South gin, Stil vodka, Seven Tiki rum and 420 spring water.

Commenting on the deal, Bacardi president and ceo Andreas Gembler said: ³Bacardi is acquiring young premium brands in 42 Below. With substantial investment by our company, the company shows long term potential in the global spirits industry with a particular focus on the growing Asia Pacific markets.

In fiscal 2006 42 Below recorded a 58% increase in sales to 88,000 cases, but recorded a NZ3.3m ($2.2m) loss. The brand has duty-free distribution in Australasia and Asia/Pacific.

The purchase gives Bacardi a second major vodka to add to Grey Goose, which the US firm bought from Sidney Frank for a reported $2bn.