Bacardi South Africa

BACARDI SOUTH AFRICA

2 | Africa Outlook issue 90

FOOD & DRINK

Spirit of the Rainbow Nation

Bacardi stands as a premium and leading beverage brand within South Africa. We spoke to the company about its adaptation and agility in the face of a shifting consumer and commercial environment Writer: Marcus Kääpä | Project Manager: Kyle Livingstone

Francois Portier Bacardi is committed to its business in South Africa, and it is one of the most important markets in the AMEA region. The industry in South Africa is very dynamic and it is an extremely exciting time as we expect the next 10 years to be the best yet for Bacardi’s performance in the market.”

Francois Portier, Managing Director of West, East and South Africa at Bacardi, and iterator of the opening statement, has always worked in the fast-moving consumer goods (FMCG) space.

The start of his career saw him work in specified areas such as the pet food market or that of cereals, the latter including working for the Quaker brand. After moving to work for wellknown snack food company McVitie’s, Portier joined the team at Bacardi,

where he has had the privilege of watching the brand grow ever since.

“When I first began my career, the FMCG industry was the best category to gain experience and learn about the commercial side of the business,” Portier tells us. “But while I thoroughly enjoyed my time in FMCG, there was always a desire to join the spirits industry.”

And now, as Managing Director of three African regions for the company, Portier is a part of a significant and growing industry at the front of a new period.

NEW DECADE, NEW INDUSTRY As a result of the worldwide disruption caused by the COVID-19 pandemic, Bacardi had to adapt in light of a sudden period of change.

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BACARDI SOUTH AFRICA

Lebone Paarl Labels BOPP THE BREEZER Live life in colour is Bacardi Breezer’s invitation to consumers with it’s bright metallic hued labels reflecting this energetic, fun flavoured spirit cooler brand. “Our client needed a label substrate that could pop on the shelf as well as handle life in the fridge or ice bucket,” shares Henk Jacobs, General Manager of Lebone Paarl Labels. “BOPP (BiaxiallyOriented Polypropylene) was the perfect option as it is made from plastic film laid over in two directions for strength. BOPP’s moisture resistance and adhesive quality further make BOPP an excellent choice for Breezer’s glass bottles to ensure they remain in perfect condition and in place should they get wet.”

BEHIND BACARDI Bacardi South Africa is a subsidiary of Bacardi Limited, the largest privately held spirits company in the world. Its office is situated in the heart of Johannesburg. The small and efficient team works with some of South Africa’s most established restaurants, bars and clubs such as Newscafe and Harbour House Group to name a few. Bacardi owns a large number of well-known brands that spans the global spirit market.

BRANDS: • Bacardi • Grey Goose Vodka • Patron Tequila • Martini • Dewar’s • Bombay Sapphire

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“Although this has been a challenging time for the industry, it has pushed us to remain agile and creative in our business model to identify new opportunities to connect with our consumers,” Portier explains.

“We were quick to shift our strategy to meet consumers where they were consuming most, introducing innovative ways to enjoy at-home experiences, while still promoting responsible consumption and behaviours. Last year, building on the growth of the cocktail culture in South Africa, we partnered with KEGTAILS to create Highball cocktails on tap to supply to select on-trade outlets.”

In true Bacardi style, during the pandemic the company pivoted this partnership to create premium, prebatched cocktail kits for its consumers to continue enjoying their favourite cocktails from the comfort and safety of their own homes. And it has been Bacardi’s ability to adapt and stay agile that has seen it endure and emerge from the COVID-19 pandemic in a strong position.

“We selected metallic BOPP as our base material over which we added each fruit flavour’s theme colour to create rich metallic effects without needing special foils,” adds Jacobs. “ The chrome like finish catches the eye and the addition of white ink under the Breezer logo created a contrasting matt area to draw attention to the beverage’s name.”

Jacobs further explains, “We printed these labels on our sophisticated UV flexo self-adhesive presses as they combine excellent print quality, high productivity and flexibility.”

Lebone Paarl Labels is FSSC 22000 certified, confirming that the food safety management system is compliant for food and beverage products. “We are also ISO 9001 and Mellow Colour certified,” concludes Jacobs. “Our clients can be confident their pressure sensitive labels are inspected according to stringent international standards for perfect continuity, full brand integrity and functionality to Spotlight their brands.”

For advice on your label requirements, call 021 877 6200 or email info@lpaarlabels.co.za.

www.lpaarllabels.co.za

It’s all in the label Your brand is valuable, that’s why no matter the shape, size or form of your product, we take the time to craft labels that do your brand justice. After all, it’s about the name on the label, and a quality brand deserves a quality label.

Spotlight your brand Black Women Owned B-BBEE Level 4 | +27 21 877 6200 | info@lpaarllabels.co.za | www.lpaarllabels.co.za

BACARDI SOUTH AFRICA “In 2019, Bacardi South Africa grew faster than the industry in both volume and value and we lead Sub-Saharan Africa in the appreciation of premium wines and spirits,” Portier elaborates.

“Over the last few years, we saw more consumers keen to enjoy better quality drinks and experiences, and consequently drawn to premium brands, and we are seeing this trend continue to rise across gin, rum, tequila and scotch whisky. IWSR forecasts the three-year CAGR at 16 percent for the premium and above category, showing huge potential for growth.

“Gin is also booming in South Africa and according to IWSR 2019, the gin category grew by 47 percent across our AMEA business, with South Africa making up 56 percent of that overall category volume. Bombay Sapphire was our fastest growing brand in the market in 2019 with a three-year CAGR at 34 percent, growing more than any of our other brands.”

In line with COVID-19 restrictions Bacardi also saw jumps in digital consumer activity across the board.

In South Africa, digital commerce became a key focus for the company and continues to be a channel that it invests in to ensure it is meeting consumer demand for convenience.

ADAPTATION AND OPPORTUNITY The past year has seen consumer behaviour evolve and so Bacardi South Africa has had to remain flexible to swiftly pivot its strategy in order to focus on its connection with at-home consumers. On top of the promotion of well-crafted cocktails for home experimentation through a partnership with the aforementioned company KEGTAILS, Bacardi took the opportunity of home-based consumers to drive success and growth.

“Mindful drinking is a trend that we saw before lockdown as people strive for a more health-conscious lifestyle and drinking “less but better” alcohol,” Portier informs us. “Low and no 6 | Africa Outlook issue 90

THE FOUNDER’S TALE Bacardi was founded by Don Facundo Bacardí Massó in Santiago de Cuba, when he bought a small distillery and revolutionised the rum-making process to create a smooth, light-bodied spirit – what the world now knows as BACARDÍ® rum.

Facundo’s wife, Doña Amalia noticed a colony of fruit bats hanging in the rafters of the distillery and recognised their importance to the Spanish and Cuban Taíno Indians as symbols of good health, family unity, and good fortune. She suggested adopting the bat as the symbol of BACARDÍ rum and soon locals began to ask for “el ron del murcielago” – the rum of the bat.

Facundo Bacardí Moreau (the son of Don Facundo) planted a coconut palm at the front of the new distillery. Affectionately known as El Coco, the palm became a symbol to the Bacardí family and company. Withstanding a distillery fire, five earthquakes, and countless hurricanes, El Coco symbolised the strength and resilience of the Bacardi company. And eventually, a local prophecy grew around the palm tree: “The Bacardi company will survive in Cuba so long as the coconut palm lives.”

FOOD & DRINK

KEGTAILS – SOUTH AFRICA’S LEADING COCKTAIL COMPANY Our premium cocktails – manufactured in 20l PET kegs and dispensed via our trendy in- house-designed draught taps

FRESH

COCKTAILS

ON

TAP

– are handcrafted by expert mixologists using the freshest, finest ingredients. Enjoy the convenience, consistency and simplicity of the world’s finest cocktails served in an instant!

Kegtails is perfect for bars, restaurants, festivals and large-scale events – where speed-of-service is crucial for driving profits…

Serve exceptional cocktails up to 3x faster – selling more product to more people

Experience the Kegtails revolution.

Complete consistency – any bartender can serve the perfect cocktail every time Zero waste on perishables – shelf-life of 8 weeks (once opened) / 8 months (sealed)

EASE, SPEED, EXCEPTIONAL QUALITY NOW THAT’S A PERFECT COCKTAIL!

www.kegtails.co.za

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BACARDI SOUTH AFRICA alcoholic beverages are the new go-to for the next generation of consumers across the globe and within South Africa.

“Our launch of Martini Dolce 0.0 in South Africa at the end of 2019 was pivotal in expanding our presence in the low and no alcohol category and providing consumers with an alternative premium and sophisticated offering that they could enjoy as part of their at-home or dining out experience.

“The Martini brand is well known in South Africa, especially with our award-winning sparkling wines and vermouths. In other markets like West Africa, we are also seeing Martini Dolce 0.0 growing ahead of expectations. We have expanded availability into countries like Ghana and Nigeria, as well as Cameroon and the Ivory Coast.”

DIGITAL GENERATION The shift in consumer consumption patterns has also altered the way in which Bacardi has conducted its marketing and offers. The rising mass use of digital commerce, only fuelled further by the social restrictions resulting from the COVID19 pandemic, have made digital innovation a key aspect of Bacardi’s growth. In South Africa, Bacardi swiftly expanded its offerings in the e-commerce space across platforms such as TakeALot, Pick & Pay and Makro. Globally, the company has a goal for digital commerce and innovation to drive 20 percent of all its business by 2030.

“Responsible drinking in South Africa is also of crucial importance,” Portier adds. “As an organisation from a global perspective and more so in South Africa, we remain committed to working to encourage this behaviour.

“As a member of the South African Liquor Brand Owners Association (SALBA) we remain committed and are in full support of the efforts that the team there is currently undertaking with the South African government.”

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BACARDI ON RESPONSIBILITY From its early days in 1862, Bacardi has operated with a deep appreciation of the connections between business and society. Bacardi acknowledges that its privilege to create spirits that consumers love is earned by taking care of both the company’s people and the communities in which it operates. Bacardi makes choices based on doing the right thing for such people, its consumers, partners, brands, and the environment.

Bacardi cares about the impact of what it does not just in the present but for the future, which the company encapsulates under its ‘Good Spirited’ initiative. Bacardi has four pillars that it implements globally: 1. GOOD FOOTPRINT – taking bold action to have a positive impact on the environment.

2. GOOD FUTURES – empowering people in the fair and inclusive workplace to bolster associated communities.

3. GOOD CHOICES – market responsibly to inspire mindful drinking and reduce alcohol-related harm.

4. GOOD SOURCES - respect people and the planet through responsible sourcing partnerships.

FRESH

COCKTAILS

ON

TAP

BACARDI AND KEGTAILS TOGETHER ARE REVOLUTIONISING THE COCKTAIL CULTURE IN SOUTH AFRICA.

IN BARS AND RESTAURANTS ACROSS THE WORLD A COCKTAIL REVOLUTION IS UNDERWAY. Here in South Africa, ‘Kegtails’ is leading that revolution and have partnered with Bacardi to further ramp up the revolution.

Johannesburg, South Africa – In a business venture that is set

restaurants and hotels reduce the time and money it takes

to shift norms in the local cocktail scene, the largest privately-

to make a cocktail without compromising on the quality that

owned spirits company in the world, Bacardi, has chosen

patrons have become accustomed to. From its inception,

to invest in a local beverage business that offers premixed

the brand’s innovative approach to cocktails has piqued the

cocktails by the keg.

industry’s interest, leading to Bacardi coming on board in 2017, initially as their Official Pouring Partner, as the companies had

As a family business, Bacardi has welcomed the local business

a shared passion for the cocktail revolution.

into the fold with the common goal of growing and nurturing the cocktail industry in South Africa and beyond. It could

Kegtails Managing Director and Co-owner, Shapiro says,

be a Bacardi Mojito, a Strawberry Daiquiri, Dewar’s Highball,

“Bacardi’s investment in Kegtails is a major boost for our

Martini Fiero Spritz or even a Bombay Sapphire and Sugar

business and an indication that we are hopefully on the

Free Grapefruit Tonic on tap – consumers can now order their

brink of something amazing in our journey to the top of the

favourite cocktail and savour its flavours within seconds.

South African - and even the world’s - cocktail and beverage innovation map. The continued backing from Bacardi over

Four years ago, owner of Liquid Chefs Craig Shapiro partnered

the years has supported our growth and success. Having the

with mixologist, Peter Oosthuizen and together they founded

global spirit business behind us as a partner in our business

Kegtails, a company that offers premixed cocktails on-tap.

and with access to their fantastic spirit portfolio, route to

The cocktails are hand crafted by expert mixologists using the

market strategies, global network, supply chain and insights

freshest, premium ingredients including of course the best in

team to support us, we believe we can grow our business to

cocktail spirits. The relatively young company is helping bars,

new heights.”

www.kegtails.co.za Tel +27 11 440 7461

Email info@kegtails.co.za

Address 42 Andries St, Sandton, 2090, South Africa

BACARDI SOUTH AFRICA FAMILY BUSINESS Although Bacardi is regarded as one of the world’s largest alcohol companies, it remains a family-run business, and its people make the company what it is today. Bacardi have a long-term vision for the success of the company, and its primos (Spanish for ‘cousin’ and a term Bacardi use in place of employees) are a part of that journey.

“On top of this, consumers are at the heart of everything we do at Bacardi, and this is what truly sets us apart from the competition,” Portier tells us proudly. “Local market insights and intuitive listening tools are key to informing our strategy and ensuring we remain relevant with our consumers and impactful in the way we communicate. In South Africa specifically, Bacardi has pioneered exceptional culturally relevant experiences and campaigns that capture consumer hearts and minds.

“Our cultural pillars of ‘Fearlessness, Family and Founders’ inspire everything we do. Being fearless enables our decisions and allows us to remain agile and creative within a framework, while our founder’s

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“OUR COMMITMENT TO KEEPING CONSUMERS AT THE HEART CONTINUES TO GUIDE HOW WE MOVE FORWARD TODAY” – FRANCOIS PORTIER, MANAGING DIRECTOR OF WEST, EAST AND SOUTH AFRICA, BACARDI mentality inspires a progressive, trend-focused and curious mindset within the organisation that empowers us to always do what’s right for the business.”

And these company values are implemented at every level of Bacardi’s business, from the training and support of its primos to the acknowledgement and agility to the demands of customers, and in the company’s various projects and investments.

A COMPANY WITH COMMUNITY For Bacardi South Africa, investment in its people and teams has always been at the core and centre of its business and success.

“Our people are our biggest asset,” Portier states. “As a company, we seek and nurture talent that is as passionate, enterprising, and as goal oriented as the business through numerous internal and partner

programmes. Career development and advancement opportunities are prioritised for primos through the ‘Bacardi Ready’ programme, and regular ‘Let’s Talk’ sessions, driving open discussions around performance and growth.

“Another key initiative for us is the Bacardi Women in Leadership programme, which was founded with the mission of unleashing the potential of current and future female leaders at Bacardi. For us equal pay, equal play isn’t just a catchphrase we use, our programmes and initiatives are focused on training, developing, and inspiring our pipeline of highpotential women to grow individuals into leadership roles.”

Just as Bacardi South Africa treats its primos with the utmost importance, the company equally considers its business partnerships as vital to its overall operational success.

FOOD & DRINK

Alongside these partners, Bacardi South Africa has achieved many of its ambitious targets.

“Our partners across all functions of our business are key to our success, and we view them all as an integral part of our Bacardi family,” Portier affirms. “Our relationship with our long-standing distribution partner, DGB, is just one example. DGB have been a successful partner of ours for nine years, and we have always shared growth aspirations for South Africa as a key market. As our ambition in South Africa evolves, DGB will remain a valuable partner in our logistical operations, and we look forward to continuing our successful decadelong partnership together.”

FUTURE FOCUS With increasingly digital aims to answer the demands of the growing e-commerce market, Bacardi in South

“OUR PEOPLE ARE OUR BIGGEST ASSET” – FRANCOIS PORTIER, MANAGING DIRECTOR OF WEST, EAST AND SOUTH AFRICA, BACARDI Africa and beyond has laid out a promising future ahead of it. Portier ends discussing the company’s future goals with promising optimism.

“Patrón is a key focus area for us,” he tells us. “As the world’s number one ultra-premium Tequila, we remain focused on building awareness and availability of Patrón in South Africa in 2021. We believe South Africans are ready to embrace what the brand has to offer and expand into the world of Patrón cocktails and versatile offerings.

“On top of this, being involved on the ground and managing customer relationships directly keeps us closer to our consumer and allows us to continue driving our growth

ambitions. Expanding our team with new sales and trade marketing representatives is critical this year in our new organisation.

“As a team, we are excited to hit the ground running with customers and drive activity that will contribute to the growth and success of Bacardi South Africa.”

BACARDI SOUTH AFRICA Tel: +27 (0) 78 803 4929 www.bacardilimited.com

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BACARDI SOUTH AFRICA 11 Crescent Drive, Melrose Arch, Johannesburg, 2196 South Africa Tel: +27 (0) 78 803 4929 www.bacardilimited.com

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