Wednesday, June 24, 2015
After decades as the king of rum, Bacardi has fallen from the top selling rum in the world. United Spirits' McDowell's no.1 Celebration, according to The Millionaires' Club 2015 has taken over the top spot in the rankings, with Tanduay coming in number three.
Bacardi's sales has dropped 5% in 2014 to 18.2 million 9-litre cases, third successive year of sales decline. Meanwhile, Indian rum brand's slide was slower, at only a 4% drop, enabling it to slide into the top spot in the category for the first time by only 100,000 cases. It was a reverse of 2013 when Bacardi retained the title over McDowell's by the same amount. Tanduay has recovered its losses from typhoon Haiyan in 2013. Tanduay has grown some 17million cases in 2014 moving into third place in the category. The full report will be published in July in Drinks International.
Bacardi is "plagued" by "fundamental issues" that are pushing it "off the business cliff", one of the company's former regional presidents has said in a blistering public attack. Posting an open letter to chairman Facundo Bacardi on social media, Rob McPherson, the former president of Bacardi Canada, gave a scathing criticism of the world's largest family-owned spirits company, claiming that its recent managerial reorganization left him "compelled" to speak publicly.
Bacardi announced that its chief marketing officer, Dima Ivanov, was quitting the company after just six months in the role. Bacardi said that Ivanov's departure was directly related to its management restructuring, which is seeing marketing duties devolved to two regional managers, who will also have global responsibilities for some of the company's brands - such as Martini, Grey Goose and Bacardi rum - divided between them.
Bacardi has not responded to Rob McPherson's open letter thus far. More can be read at http://www.thedrinksbusiness.com/2015/06/directionless-bacardi-heading-for-a-cliff-writes-former-exec/
There are a lot of things beginning to happen at Bacardi and it will be interesting to follow what they are doing and if they will be able to regain their long held spot at the top of the sales charts in the coming year. ;o)