Cocktail craze puts new Bacardi boss Luiz Schmidt in high spirits
Luiz Schmidt might have arrived in Australia at the right time to run the local arm of global spirits giant Bacardi, with a thirst for premium spirits and a new cocktail culture emerging.
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Luiz Schmidt might have arrived in Australia at just the right time to run the local arm of global spirits giant Bacardi, with a thirst for premium spirits and a new cocktail culture emerging from pandemic lockdowns.
And if that isn’t enough to bring a smile to the veteran spirits executive’s face, Australians finally could be ready to embrace tequila with the same sense of adventure and excitement as they have whisky or gin.
However, he could find that particular task much more difficult than he did in his last job for Bacardi, where he oversaw tequila sales in Latin America and Mexico for the family-owned spirits maker whose portfolio boasts the world’s No.1 super-premium tequila, Patron.
Now back in Australia – he first worked here for Brown-Forman, the owner of Jack Daniel’s, in 2009 – Mr Schmidt brings with him some of the world’s most famous spirits brands, led by Bacardi rum, Hollywood and celebrity favourite Grey Goose vodka, Bombay Sapphire gin, award-winning vermouth martini and Patron tequila.
The Brazilian-born Mr Schmidt told The Australian he sees huge opportunities for Bacardi’s portfolio in Australia and New Zealand, as Australians reoccupy bars, clubs and restaurants after Covid-19 restrictions ended, seeking seek premium spirits when a bartender mixes up their favourite Manhattan or dry martini.
“I do definitely feel that the demand for premium spirits in Australia will continue. I think the prosperity that Australia has, in the growth of population as well in the education of population, will make sure that consumers will continue to trade up and premiumise,” he said.
“(Some) people are looking to potentially drink less, which is not a bad thing as well. But they are definitely looking for those brands with that extra experience, that story to tell. I think we are very well positioned. I think we have great brands with great heritage … so I definitely see the glass half full rather than half empty.”
As the new boss of Bacardi Australia and New Zealand, Mr Schmidt will be responsible for a wide portfolio of spirits. The 162-year old Bacardi, founded in Cuba, had its assets seized and confiscated by the Castro revolutionary government in the 1960s and these days calls Bermuda home. There, the current chairman is Facundo L. Bacardi, the great-great grandson of company founder Don Facundo Bacardi Masso and a fifth-generation family member. Bacardi is the largest privately held spirits company in the world.
Mr Schmidt brings to his new role plenty of international experience, including most recently working in Panama serving as regional marketing director for Bacardi in Latin America and the Caribbean. He knows Australia well too, having graduated with an MBA from the University of Technology Sydney. In 2022 Bacardi Australia reaped total sales of just under $95m. Mr Schmidt said the group has a target of $100m in 2025 and is looking to be a few years ahead of that deadline.
That accelerated timetable has been partly fuelled by the rebound from Covid-19 lockdowns. Mr Schmidt believes many Australians took the opportunity to experiment with cocktails in the home. When lockdowns ended Australians hit the bar scene, sparking a cocktail renaissance.
“We saw a huge surge in the on-trade consumption – at bars, restaurants – and we also saw a slowdown in the off-premise (liquor shops). On the other hand, it’s very interesting, what has happened during Covid is that people were at home, pretty bored, they didn’t know what to do and a lot of people said, ‘you know what, I’m going to learn to make cocktails’.
“A lot of people learned how to do a proper margarita, a lot of people did learn how to do a proper gin and tonic, a Manhattan, a mojito.”
He believes that thanks to this Covid kick, many occasions usually dominated by wine are now seeing spirits and cocktails creep in.
“We see a lot of people drinking spirits during the day, early evening, during sunset with friends getting together, and a huge surge of the cocktail culture in Australia as well, which has been happening since I was here back in the early 2010s. That culture was starting and now it’s definitely on fire. When you talk to the trade people they say ‘wow, we’ve definitely seen spirits accelerating’.
“Ten years ago wine and beer had a very clear lead. Not as much anymore, definitely spirits are catching up to beer and wine.”
Mr Schmidt – whose “go-to” drinks at the moment include a spicy margarita, or when out with his wife for dinner, a classic Manhattan on the rocks mixed with Bacardi’s super-premium bourbon, Angel’s Envy – is also considering the possibilities of Australians taking up tequila.
“We have seen tremendous growth of tequila, even in Mexico which is a whole country full of tequila, and you still see tremendous growth – especially premium.
“So it’s interesting to see that is reflected in Australia as well. Travelling through Australia you can see a lot of great tequila bars happening. Super-premium tequila is getting into the top end of town trade like restaurants.
“And at the moment it (super-premium tequila) is the most aspirational category for Australians. Obviously tequila does not have the penetration that traditional categories such as whisky and vodka have, but on the other hand it does have that aspiration, is very young and we definitely see a lot of opportunity for tequila for sure.”
Originally published as Cocktail craze puts new Bacardi boss Luiz Schmidt in high spirits
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