Spirits group Bacardi is close to an approximately $200 million deal to purchase Ilegal Mezcal, according to reporting in Bloomberg Finance. The group bought an unspecified minority stake in the major mezcal brand in 2017, granting it national distribution.
Alongside private equity firm L Catterton, Bacardi is engaging in conversations to purchase the brand from founder John Rexer, Bloomberg reported, citing “people with knowledge of the matter.” As well as Bacardi, Ilegal’s existing backers include private-equity firm VMG Partners.
Ilegal has become a major player in the mezcal scene since debuting in 2005 after Rexer began smuggling bottles from Oaxaca, Mexico to Café No Sé, his clandestine bar and music hub in Antigua, Guatemala. Ilegal has since released an unaged joven, a 4-month reposado and recently introduced a 7-year extra añejo. The brand’s identity has leaned into its contraband and bohemian-friendly history, producing a music series as well as launching political campaigns around immigration and LGBTQ+ rights.
The possible deal signals the continued rise of agave spirits. With tequila driving spirits sales, other major spirit groups have brought mezcal and sotol brands into their portfolios. But Ilegal would be Bacardi’s first mezcal, joining tequilas Patrón, Cazadores and Corzo.
In 2017, Pernod Ricard purchased a majority stake in Del Maguey Mezcal for an undisclosed sum, and Constellation brands acquired a minority stake in Dos Hombres Mezcal in 2021, the label from Breaking Bad leads Aaron Paul and Bryan Cranston. Diageo launched its first mezcal in 2019 with Casamigos before purchasing Mezcal Unión in 2021. Pernod Ricard also made a recent investment in the sotol category, which has started to build an audience.The company revealed an initial undisclosed investment last year in ultra-premium Nocheluna brand.
The mezcal market is currently valued at $338 million and is projected to reach $2.1 billion by 2030, according to Straits Research.