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BACARDI’S

STRATEGIES FOR THE

Business Strategy 1
News Article we
referred to…

Business Strategy 2
Introduction to Indian
Alcohol Industry

Business Strategy 3
Factors Contributing to
Growth

Business Strategy 4
Barriers to Growth

For New Players

Business Strategy 5
Market
Share
United spirits with about 60 % of market share in
IMFL is the undisputed leader.
Radico Khaitan who entered the IMFL space some
8 years back has already cornered 12 % market
share
Other players include Mohan Meakin (9%), Jagatjit
(8.5%), etc.
International players
Pernod Richard,
Remy Cointreau
Diageo Business Strategy 6
Business Strategy 7
Bacardi Limited – An
Introduction
Company founded in Santiago de Cuba in
1862

One of the largest spirits companies in


the world with presence in over 100
countries

Headquartered in Hamilton, Bermuda

Product portfolio includes more than 200


brands and labels of rum, vodka, whisky,
gin and tequila

Manufacturing facilities in 31 plants


around the world

Popular brands include Bacardi Rum,


Grey Goose Vodka, Bombay Sapphire Gin
Bacardi Martini India
Limited
Entered Indian market in 1998
76: 24 JV formed between Bacardi
limited and Gemini Distilleries to
enter Indian market
Extremely bullish on growth
prospects in India
Plans to introduce a number of its
global brands in India
Vodka – Eristoff and 42 Below
Flavored Vodka – Sloe Berry and
Blackberry
Wine – Martini
Looking at opportunities to acquire
Some recent news items of
Bacardi
“We have been an acquisitive company traditionally.
And we are now in the market to buy out brands, and
that includes India"
- Company President and CEO Seamus
McBride to Economic Times
February 25, 2009

“The world’s largest privately held liquor maker,


Bacardi Ltd, is scouting for potential brand acquisitions
in India and expanding its sales and marketing team to
tap anticipated growth in the local spirits market.”
- Livemint.com, Feb 16 2009
Business Strategy 10
Some recent news items of
Bacardi
“In a bid to tap the growing demand for premium
international spirits in India, global spirits major Bacardi
Martini plans to introduce more brands from its
international portfolio here.”
- Business Standard October 10, 2008

• “Bacardi Ltd, the name synonymous with white spirits, is


setting its eye on the Indian whisky market with the launch
of its high-end renowned single malt Scotch whisky brands
such as Dewars and Aberfeldy, thanks to the raising
disposable income of the Indian liquor consumers.”
- The Financial Express, December 24, 2008
Business Strategy 11
Strategies
Acquisitions and Buyouts
Buying Brands throughout the country
In talks with Vijay Mallya’s United Spirits to take stake
Market Penetration
Sales around 1 million cases, way behind French giant
Pernod Ricard and even Diageo in India, even after a
decade
Establishing presence in smaller cities, which contribute
70% of total liquor sale
Introduction of major global brands in India
Product Development
Flavoured Vodka
Locally made Martini
Taking up of Whisky Brands
Introduction of new Business
productsStrategy 12
The Implications- Hic Hic
Thank you! Hic!
Business Strategy 14
Group No 2
Abhishek Shah – GMAY08IB084
Kumar Anurag – GMAY08IT021
Raghuram Gupta – GMAY08WM133
Shruti Gosavi – GMAY08WM144
Uday Jain – GMAY08IT053
Vijay Radhakrishnan – GMAY08IB109

Business Strategy 15

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