Bacardi President on Spirits Demand Rebound, Gen Z Habits, and Tequila Growth

Post-Covid Demand Rebound

• 📈 Consumer demand for spirits is showing signs of rebounding after a period referred to as the "Covid hangover," where excess inventory was present.
• 💡 Channels of consumption are increasing again, indicating a positive shift in the market.
• ⚠️ While macroeconomic pressures led to some trading down in the past 12-18 months, consumers are now showing signs of trading back up.

Gen Z Consumer Behavior

• 🧠 Gen Z is engaging with alcohol, with two-thirds having interacted with it in the last six months.
• ✨ This demographic is focused on being intentional about alcohol consumption, seeking discovery and experiences.
• 🎯 Gen Z prefers to drink better, not more, integrating alcohol into social experiences.
• 🚀 The trend of premiumization in spirits, which paused post-Covid, is beginning to materialize again.

Growth Categories and Portfolio Strategy

• 🌟 Tequila and agave-based spirits are experiencing very strong growth, with brands like Patron and Casamigos highlighted.
• 🍸 Bacardi is evolving its cocktail strategy to offer moderate cocktails with slightly lower alcohol content.
• 🔍 The company is identifying pockets of growth across different demographics and markets, with a particular focus on agave-related categories.

Impact of Tariffs

• 🌍 As a global company, Bacardi views tariffs as a normal part of business operations.
• 🛠️ Supply chain agility, improved through Covid disruptions, allows Bacardi to respond and preempt tariff impacts.
• ✅ Tariffs are considered manageable, with no significant increase in the cost of goods expected, nor significant price increases for consumers anticipated, especially heading into the holiday season.