StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
Issue link: http://read.dmtmag.com/i/128575
Sauza Tequila debuted three new expressions last year: Tres Generaciones Plata Organic Tequila and Tres Generaciones Reposado Organic Tequila, and Casa Sauza XA, Edition Limitada. The two organic versions are made from hand-picked blue agave plants. formation turned in an impressive record of performance with its premium 1800 Tequila brand, whose sales chalked up a dazzling 14.9% gain to 925,000 cases nationally in 2012, according to the 2013 Handbook Advance, not to mention its other successful brands such as Three Olives Vodka, Stranahan's Colorado Whiskey and Matusalem Rum. So, on July 1 then, Proximo will assume control of almost one out four bottles of tequila sold in the U.S., now that Cuervo is joining 1800 in its portfolio. (At press time, Proximo executives were unavailable for comment concerning either its 2013 plans for Jose Cuervo or about promotional programs for its 1800 brand.) An Evolving Market M eanwhile, the tequila market is fast evolving, even as the product continues to attract more consumers and, increasingly among them, greater numbers of discerning aficionados. And it is the latter group that is helping to drive robust growth and sales in the favour of 100% agave products at all price points, but especially notable at premium and ultra-premium prices from $30 a bottle on up to $90 and above. As the tequila market evolves, then, tequila marketers of mixtos are facing stiff headwinds. [Mixtos are those tequilas, like Cuervo, that are made with no less than 51% agave, but whose products do not reach the 100% agave level.] While overall tequila sales rose last year by 5.6% to 12.9 million cases nationally, tequila marketers and leading merchants alike see consumers continuing to move to those brands made with 100% agave, particularly as they learn more about the product. Patron's mass summer displays are intended to excite consumer interest in the category and the brand. StateWays I www.stateways.com I May/June 2013 In the control states, the category showed more modest overall gains of 2.7%. While the marketplace is still dominated by the Margarita, in a wide variety of offerings, and in some quarters tequila shots still rule, more activity is being noticed among sipping and connoisseurial brands. "Our customers are shying away from mixtos – the golds and the clear or silvers – and moving into 100% agaves," says Brian Bowden, vice president of spirits, beer, tobacco, beverages, at BevMo, the California-based 131-store retail group with stores in California, Oregon and Washington. Bowden adds, "At BevMo, 100% agave tequila is becoming a premium spirits class for our customers. It's the third largest spirits category after vodka and liqueurs." Lindsey Lewis, brand manager, Sauza Tequilas, at Beam Inc., identifies three key trends driving growth and innovation in the current category: "First, there has been a proliferation of 100% agave tequilas entering the U.S. market over the past few years. Second, the category is also seeing a slew of new flavored tequilas, including the launch of our Sauza also just launched a new line: Sauza Sparkling Margarita, in Original Lime, Wild Berry and Mango Peach flavors. The effervescent prepared Margaritas are 9.95% abv and have a suggested retail price of $12.99 for a 750 ml. new Sauza Sparkling Margarita line of Lime, Wild Berry and Mango-Peach entries. Third, we see the premiumization trend intensifying, with more consumers trading up to higher-priced, 100% agave brands." And now Sauza has just launched new marketing program, the second iteration of its successful "Make It…" campaign launched last year, specifically targeted at female consumers. Last year's "Make It With a Fireman," went viral and was named to YouTube's 2012 Most Watched Ads list. This year's nine-month-long program is titled, "Make It With a Lifeguard," and will include PR and retail extensions, as well as a digital and social plan, a national sampling tour, customized online and mobile The Hornitos family of tequilas, with its latest addition, Hornitos Lime Shot. 55