Can I buy Bacardi stock? Bacardi Limited is one of the largest spirits companies in the world. It owns major liquor labels such as Bacardi Rum, Martini, Grey Goose Vodka, Patron Tequila, Dewar’s Scotch, Bombay Sapphire Gin as well as a multitude of others. Unlike other big companies like Anheuser-Busch Inbev, Heineken, or Constellation Brands, Bacardi Limited is not a publicly-traded company. Therefore, you can’t buy Bacardi stock. Below, we will take a look at the global history behind the brand and its public competitors.
Bacardi Limited Story
Bacardi Limited has been a family business since its early days in 1862. This adds up to 7 generations. They were founded in Cuba, but their headquarters are in Hamilton, Bermuda.
Most of us know Bacardi for their rum, when in fact the company owns over 200 brands of liquor which includes big names mentioned above.
The story begins with a 14-year-old Spanish immigrant, Facundo Bacardi Masso, who arrives in Cuba in 1830 and starts importing and selling wine.
His aspirations quickly became bigger and he wanted to sell superior quality rum. In 1862, he bought an old fully-equipped distillery with his brother and a business partner.
They began to produce the Caribean’s finest rum and the recipe has been passed on from generation to generation.
In the 1880s, Bacardi needed a logo to have their products easily recognizable. To this day, the same logo appears on their bottles: the fruit bat.
Bats pollinate the sugarcane crops needed to produce rum and get rid of the insects simultaneously. They are also a symbol of good fortune in Latin America. But you can’t buy Bacardi stock as of yet.
Bacardi Stock 20th Century Expansion
Bacardi’s mission was to expand internationally, but prohibition stood in their way in the US until 1933. Many tourists came to Cuba and learned about Bacardi which boosted their brand internationally. Bacardi started opening distribution points in Spain, Brazil, and Mexico, and in the US once prohibition was over. They opened a facility in Puerto Rico to save on export taxes for the US.
More and more tourists were visiting the Caribbean islands and noticing Bacardi. Local drinks were slowly entering the US market such as the famous ‘’Daiquiri’’ and ‘’Rum and Coke’’. They partnered with many soft drinks companies to become the mixer of choice. In 1978, Bacardi sold 8 million cases of rum in the US, and in 1980 they became the #1 liquor brand in the US.
In the ‘90s, Bacardi solidified its European presence with the purchase of Martini & Rossi. They also sold more low-calorie drinks and mixed bottles appealing to the younger generations. The competition was getting fiercer and Bacardi bought more brands and expanded their drinks selection. However, if you’re looking for Bacardi stock, you’re out of luck.
Bacardi Stock IPO
Rumors of a Bacardi stock IPO were at their peak in the early 2000s. To this day, many investors would love to see Bacardi Limited go public, but it seems unlikely.
The company has an amazing portfolio of brands, excellent sales and margins and distributes its products in over 180 countries.
Their sales keep growing despite the pandemic and they remain an excellent candidate for an IPO. In 2019, they were the second best-selling rum in the world, trailing to Tanduay, a brand from the Philippines.
Fortunately, many of Bacardi’s competitors are public and offer an appealing investment opportunity.
Bacardi’s Public Competitors
The world’s two largest public alcoholic beverage companies are Kweichow Moutai (SHE: 600519) and Wuliangye Yibin (SHE: 000858). They are valued at $372.49B and $121B but are only available on the Shanghai Stock Exchange. If you trade on a foreign exchange, you can check these out in lieu of Bacardi stock.
Diageo plc (NYSE: DEO)
A competitor of Bacardi stock, Diageo is third in the rankings. They are worth $117.43B. Founded in 1997 in London, UK, they are much younger than Bacardi. They result from the merger between Guinness Brewery and Grand Metropolitan. They sold Pillsbury and Burger King.
Diageo owns a plethora of international brands such as Johnnie Walker Whiskey, Crown Royal Whiskey, Ciroc, Kettel One and Smirnoff Vodka, Captain Morgan Rum, Tanqueray Gin, Baileys, and Guinness Beer. Diageo is the leading producer of Scotch Whiskey. They are constantly expanding worldwide and buying local brands with huge success.
Their sales have been constantly growing over the years except for 2020 when a lot of companies had issues due to the pandemic. Stock analysts assigned them a rating of ‘’Hold’’. They are currently trading just over $200, $20 shy of their all-time high recorded at the end of December.
Anheuser Busch Inbev SA (NYSE: BUD)
Commonly known as AB InBev, they are fourth in the rankings with a net worth of $109.23B. Initially, George Schneider, a german brewer, opened Bavarian Brewery in St Louis in 1852. Currently, this company is the result of three mergers. Adolphus Busch later joined and thanks to him, many firsts in the beer industry were introduced. In fact, they were the first to introduce pasteurization to keep the beer fresher and mechanical refrigeration for storage and transportation.
The prohibition years proved to be a difficult time, but they managed to survive and even became the largest brewery in the US in 1957 and they have been holding the title ever since.
Today, AB InBev owns major international beer brands such as Budweiser, Bud Light, Stella Artois, Hoegaarden, ShockTop, and others. Microbreweries have also been making a huge impact in many communities and AB InBev took the opportunity to purchase some of them. They own a total of 12 breweries in the US alone.
Revenues are up overall in the last 10 years, but their revenues declined 3 consecutive years between 2018 and 2020. However, their revenue in 2021 bounced back and seems to be regaining its momentum. Their stock is currently sitting shy of $63, short of their all-time high of $130 set in 2016.
If the past year is a glimpse into their future, their stock could be worth a lot more in the upcoming years. Analysts are mixed on their ratings, as the ‘’Hold’’ ratings slightly outnumber the ‘’Buy’’ ratings. So check them out in lieu of Bacardi stock.
Constellation Brands (NYSE: STZ)
Finally, Constellation Brands have the seventh rank in the standings with a market cap of $44.32B. They were founded in 1945 by Marvin Sands in New York, incorporated as Canandaigua Wine Company, Inc in 1972, and rebranded to their current name in 2000.
Their portfolio consists of popular brands such as Modelo and Corona and they are the leaders in beer importation in the US by sales. Constellation Brands was also the first to invest in medical and recreational cannabis with their investment in the Canadian company Canopy Growth Corporation.
Mixing alcohol and cannabinoid compounds has the potential to bring in big sales in the next decade. Canada has already legalized marijuana and the US shouldn’t take much longer.
Unlike other companies, their revenue hasn’t declined once in the last 10 years, even during the pandemic, and their stock is close to its all-time high. The current price is $236.05 not fat from the $254 high. Analysts are very bullish on this stock and most agree on a ‘’Buy’’ rating.
As we can see from the brands mentioned here, they are all profitable and can be an excellent investment over the years. Each has its own story, strategy, and plans. People will not stop drinking and as we can see from the numbers, the numbers seem like they will only increase. Mergers and acquisitions in this market seem infinite as new beer, wine, and liquor brands are created constantly.
Bacardi Stock Conclusion
To conclude, Bacardi may not be a public company, but they’re doing very well for themselves. Their public counterparts seem to be moving in the right direction as well and can be a good investment. Alcohol consumption doesn’t seem to be slowing down, which can reflect on their stock price.
Some companies started expanding into the cannabis industry, which can be a good future opportunity. Since you can’t buy Bacardi stock, you can look into other sectors.
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