Bacardi in Talks to Buy Ilegal Mezcal for Nearly $200 Million

Bacardi is nearing a deal to acquire Ilegal Mezcal, signaling a growing mainstream interest in once “alternative” agave spirits. (Photo: Ilegal Mezcal)

International spirits giant Bacardi is nearing an approximately $200 million deal to purchase Ilegal Mezcal, according to Bloomberg Finance. The deal would cement mezcal as one of the most hotly-anticipated investment categories in the spirits industry.

Bacardi bought a minority stake in Ilegal, a major player in the American mezcal market, back in 2017. Alongside private equity firm L Catterton, Bacardi is now in talks to purchase the brand outright from owner and founder John Rexer.

Ilegal was first created in 2004 after Rexer began smuggling bottles of mezcal from Oaxaca, Mexico to a bar he owned in Antigua. In the nearly two decades since, Ilegal has released an unaged joven, a 4-month reposado and a 7-year extra añejo.

In stark contrast, Bacardi Limited is currently the largest privately held, family-owned spirits company in the world. In addition to its vast range of Bacardi-branded products, the company owns over 200 spirits including the likes of Grey Goose Vodka, Bombay Saphire Gin and Patron Tequila.

Ilegal would be its very first mezcal.

Amidst the ballooning popularity of tequila, mezcal has emerged in recent years as a speculative underdog. The mezcal market is currently valued at $338 million and is projected to reach $2.1 billion by 2030. Understandably, investors have taken a keen interest.

In 2017, rival spirits company Pernod Ricard purchased a majority stake in Del Maguey Mezcal for an undisclosed sum. Earlier this year, they doubled down on their “alternative” agave spirits investment with the launch of Lenny Kravitz’s Nocheluna Sotol.

Across the pond, British company Diageo launched its first mezcal in 2019 under the ever-popular Casamigos line before purchasing Mezcal Unión in 2021.

Elsewhere, celebrity investors include Bryan Cranston and Aaron Paul’s Dos Hombres and Lebron James’ 1707 Mezcal Artesanal.

All of this is to say, mezcal is on track to dominate liquor store shelves if companies like Bacardi continue to pile in.

Read More: 

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‘It’s Like Autozone in a Glass’: Youtube Comedian Trevor Wallace Takes Aim At Mezcal Snobs in New Video — Here’s What He Got Wrong 

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