Called Bacardi Lion, the business replaces Bacardi-Martini and Lion Nathan's respective RTD subsidiaries of Quality Brands International and Indio.
It is headed by QBI managing director Julian William. The new venture is tipped to reign in more than A$100 million (US$64.8 million) in revenue in the first year - roughly a 20 per cent hike on total business previously secured across the independent subsidiaries.
Australia's RTD sector accounts for 14 per cent of all alcoholic beverage sales and is growing at a rate of 21 per cent each year.
With an initial staff of 80, Bacardi Lion will outsource its back office and distribution operations to Lion Nathan while using Bacardi's research and development expertise. This deal gives the company immediate access to Lion Nathan's 18,000 customers Australia-wide. Williams said the venture was the obvious vehicle to tackle new growth in such an aggressive market.
"We believe this is a bold, innovative and industry-challenging move. QBI and Indio were restricted by limited product portfolios and expensive distribution."