Bacardi: Martini maker shaken as UK drinkers move away from spirits
UK drinkers ditching spirits in favour of wine, beer and non-alcoholic drinks has hit the sales of Bacardi, it has been revealed.
The division of the Bermuda-headquartered drinks giant has said its performance has also been impacted by “a combination of post-Covid challenges, ongoing global conflicts and a tough economic environment marked by rising living costs”.
Bacardi, whose brands also include Martini, Grey Goose and Bombay Sapphire, has seen its revenue drop from £285.1m to £181.7m in the 12 months to 31 March, 2024.
Newly-filed accounts with Companies House also show that its pre-tax profit fell from £5m to £4.8m.
‘Consumers are making tougher choices’
A statement signed off by the board said: “The UK market has been impacted by a combination of post-Covid challenges, ongoing global conflicts and a tough economic environment marked by rising living costs.
“These factors have led to a significant reduction in disposable income.
“Consumers are making tougher choices on how to spend their available money, and we see a general trend of moving away from spirits and buying more beer, wine and non-alcoholic drinks.
“This has seen the spirits category overall decrease by 1.2 per cent in the off-trade and 5.5 per cent in the on-trade during the fiscal year.
“The slowdown in the spirits category has also been driven by the 10.1 per cent increase in excise duty which was introduced by the government on 1 August, 2023, which impacted the selling and supplying pattern to some of our largest off-trade retailers and also the final retail price to the consumer.
“Overall in the current year, the company experienced a decrease [in] performance of 2.2 per cent in the off-trade, slightly behind the channel as a whole whilst delivering a sell out growth of eight per cent in the on-trade which exceeded the overall channel performance.”
Mixed results for Bacardi brands
Bacardi has also set out the mixed performances its various brands reported during its latest financial year, with labels achieving different results in the on and off-trade categories.
The company added: “In terms of market share, the gin category has been in decline but Bombay has been able to perform in line with the category overall.
“The rum category has been slightly increasing in the off-trade but this is offset by a small decline in the on-trade.
“However, Bacardi brand, whilst protecting its position in the off-trade, has been significant growth in the on-trade, outperforming the category as a whole.
“The pattern for rum has been mirrored by that of premium vodka with Grey Goose protecting its potion in the off-trade whilst showing good growth in the on-trade.
“Premium tequila remains a high focus category for the industry with high competitive pressure leading to a decline in the performance of Patron in the on-trade.
“For other brands, in particular St Germain, we have seen good growth in both channels and a solid ready-to-drink performance.”