Bacardi has completed its acquisition of the mezcal brand Ilegal, marking the culmination of a six-year journey since the spirits giant initially invested in the US-based company.
Ilegal, headquartered in Brooklyn, New York, was established by John Rexer after he commenced importing mezcal from Oaxaca, Mexico, to his bar in Antigua.
In 2017, Bacardi acquired an undisclosed minority interest in Ilegal. In addition to Bacardi, previous investors in Ilegal included the U.S.-based private-equity firm VMG Partners. Today, on September 11, Bacardi announced that it has become the exclusive proprietor of the Ilegal brand.
The agreement comes after rumors in February that the private-equity company L Catterton was engaged in talks to purchase Ilegal.
“We believe that Ilegal has the credentials to own and lead the super premium mezcal category at a global level. Ilegal perfectly complements our portfolio and bringing it into our business sets the brand up for even greater growth as mezcal captivates more and more consumers,” Bacardi vice chairman Barry Kabalkin said.
The mezcal distillery crafts three varieties: joven, reposado, and añejo.
Ilegal Founder Rexer said, “Success for Illegal goes beyond seeing more of our bottles on shelves; it’s about building our business the right way. We will always be committed to artisanal production, the Oaxacan community, and our core values. Being a part of Bacardi will bring Ilegal to a larger audience while maintaining our commitment to sustainability and growing the business responsibly.”
The increasing demand for mezcal has ignited merger and acquisition interest in the industry. Over the past few years, Pernod Ricard acquired Del Maguey, Diageo acquired Casa UM, the parent company of Mezcal Unión, and Campari Group acquired Montelobos.
In October last year, Pernod Ricard made a significant move by purchasing a majority stake in Código 1530, a distillery renowned for its Tequila and mezcal offerings.