Bacardi Rum Products Reach All Time High in Volume and Value; Bacardi U.S.A. Celebrated Record Year

Business Wire, June 2, 2004

Business Editors

MIAMI--(BUSINESS WIRE)--June 2, 2004

BACARDI rum products report an all time high in volume and value sales for Bacardi U.S.A. in FY2003. Renewed consumer interest in traditional rum cocktails and a boom in the flavored rum segment contributed to an overall record-selling year as depletions reached more than 8,200,000 cases.

"BACARDI rum is the key to favorite drinks like the mojito and is the primary ingredient in the world's most popular cocktail, BACARDI and cola," said Eduardo Sardina, President and CEO of Bacardi U.S.A. "We are also cognizant of the change in lifestyle of many of our consumers. BACARDI and diet cola has no sugar and no carbohydrates so it fits current health and fitness consumer trends."

The tremendous growth in the flavored rum segment was fueled by the introduction of three new products. Bacardi has been a profound leader in this segment since creation of BACARDI LIMON in 1995.

"BACARDI flavored rums are sold at a twenty percent premium, making them profitable to our distributors and retail partners," said Raul Marmol, VP, Chief Marketing Officer, Bacardi U.S.A. "Beyond the 8,200,000 record breaking cases of traditional and flavored rums, we also depleted an additional 500,000 cases of our new BACARDI PARTY DRINKS exceeding our original expectations."

Fiscal year 2003 was also successful for the balance of the Bacardi U.S.A. portfolio of premium brands.

BACARDI Rum: Bacardi's total rum category grew approximately five percent, outperforming the distilled spirits market as a whole. Bacardi successfully participated in the flavor explosion with the introduction of raspberry, vanilla and coconut flavored rums (BACARDI RAZZ, BACARDI VANILA AND BACARDI COCO), adding to the existing BACARDI LIMON and BACARDI O.

FY2003 also saw the introduction of BACARDI PARTY DRINKS. The line offers a virtual "bartender in a bottle", providing at-home hosts with the perfect mix of a variety of complex cocktails every time. These products outperformed original estimates in their first year, with "Hurricane" proving to be the most popular among consumers. Others include Rum Island Iced Tea and Bahama Mama. Bacardi is currently adding to the line with the introduction of "Zombie".

BACARDI Malt Based Ready- to- Drink: While many players were dropping out of the ready-to-drink market, Bacardi experienced growth beyond original predictions. BACARDI SILVER, a malt-based ready-to-drink beverage produced in partnership with Anheuser-Busch, Inc. introduced BACARDI SILVER RAZ (raspberry flavored) and BACARDI SILVER O3 (orange flavored), which led to a twenty percent increase in depletions. BACARDI SILVER LIMON is currently being added to the line.

DEWAR'S: DEWAR'S increased in both volume and share, defying the declining trend in the Scotch category. The entrepreneurial spirit that has positioned DEWAR'S 12 and DEWAR'S WHITE LABEL as two of the finest and most desirable aged whiskies available, had particular appeal to males under 30 years of age who discovered scotch for their own generation, expanding beyond typical white spirit choices. A continued and growing desire for premium products helped the highly successful DEWAR'S 12 reach thirty percent growth. Built on the recognition and respect consumers have for DEWAR'S WHITE LABEL, the successful line extension of DEWAR'S 12 experienced particularly strong growth in the US Hispanic markets. DEWAR'S WHITE LABEL solidified its top position in premium brands and realized growth in a declining category.

BOMBAY and BOMBAY SAPPHIRE: Consumers continued to be drawn back to classic cocktails, like the Martini, while discovering the mixability of gin, providing both BOMBAY GIN and BOMBAY SAPPHIRE expanded sales. A symbol of style and sophistication, BOMBAY SAPPHIRE continued double-digit growth in FY2003 and remains the fastest growing super-premium imported gin in the U.S. BOMBAY SAPPHIRE's natural alignment with the arts and design community increased awareness and image for this icon brand.

CAZADORES BLUE AGAVE TEQUILLA: A global leader and the favorite premium tequila of California, CAZADORES, continued growth in key markets, seeing U.S. depletions increase by sixteen percent, the first full year of integration since acquisition.

MARTINI & ROSSI VERMOUTH: Supported by a resurgence of traditional cocktails like the Martini, MARTINI & ROSSI VERMOUTH saw growth of four percent and maintained its strong share and favorite status in the market.

MARTINI & ROSSI ASTI: A new generation of consumer was lured to Asti in 2003, as the product saw an increase in female consumption at home, clubs, bars, and restaurants. Interest was spurred by the new 187 ml, which drew consumers to the "little blue bottles". This, along with the continuing strength of the leading Asti brand, led to solid three percent growth.

PREMIUM LIQUEURS: Disaronno Amaretto experienced resurgence as new consumers reconsidered this classic liqueur and moved depletions up by seven percent.

Bacardi USA, a wholly owned subsidiary of Bacardi Limited, is the import, sales, and marketing arm of one of the world's leading wine and spirits producers. Bacardi USA boasts a brand portfolio of some the United States most recognized and top selling spirits including: BACARDI rum, the world's favorite premium distilled spirit; MARTINI & ROSSI vermouth, the world leader in Vermouth; DEWAR'S scotch whisky, the favorite selling blended scotch whisky in the United States; BOMBAY SAPPHIRE gin, one of the fastest growing brands in the spirits industry; and CAZADORES BLUE AGAVE tequila, ranked fourth in global sales in its category.