Liquor Stocks Run Dry in Russia as Bacardí Reportedly Divests Following Years of International Pressure

(Photo: Alvis Taurēns/Pexels)

According to local reports, spirits company Bacardí has begun winding down operations in Russia following years of backlash and accusations of war profiteering.

Russian outlet Oreanda News claims that supplies of Bacardí Rum, Grey Goose Vodka and Patron Tequila — all owned by parent company Bacardí Limited — have begun drying up across the country.

Though Bacardí is apparently divesting due to the Russo-Ukraine War, a handful of its brands remain in the country. Bacardí has reportedly continued importing Italian-made Martini vermouth and sparkling wines “due to the country’s more loyal attitude towards Russia,” says Oreanda. Other imprints like Dewar’s Whiskey and Oakheart Rum continue to be manufactured locally.

The Bacardí catalog. (Photo: Bacardí)

The relationship between Bacardí and Russia has notoriously ebbed and flowed since the invasion of Ukraine in 2022.

At the onset of the war, Bacardí publicly condemned the attacks while pledging to halt all exports and investments to Russia. The message was quickly muddied; language surrounding a pause was removed from the press release within weeks as the company reportedly began hiring new employees across the country. By the end of 2022, Bacardí reported an 8.5% rise in annual revenue throughout Russia.

The abrupt reversal led the Ukrainian government’s National Agency on Corruption Prevention to declare Bacardí a “war sponsor.” Despite international pressure and rumors of a boycott, the pros of remaining in Russia appeared to outweigh the cons for the spirits giant.

As industry regulars like Heineken, Pernod Ricard and Diageo divested from the Russian market, a lucrative opportunity arose for brands that chose to stay.

Campari Group, the owner of Aperol, Espolon Tequila and SKYY Vodka, followed a similar trajectory to Bacardí. The company initially pledged to “reduce business to the bare minimum necessary to pay the salaries of our colleagues” at the beginning of the invasion. By the end of the year, domestic sales had reached new heights of around $110 million.

Time will tell whether Bacardí Limited — the largest privately held, family-owned spirits company in the world — can maintain its promises in Russia.