Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/128596
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. 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. 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 Patron's mass summer displays are intended to excite consumer interest in the category and the brand. (Thousands of 9-Liter Cases) Brand Supplier 2011 Jose Cuervo . . . . . . . . . . . . . . .Diageo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,280 Patron . . . . . . . . . . . . . . . . . . . .The Patron Spirits Company . . . . . . . . . . . . . .1,875 Sauza . . . . . . . . . . . . . . . . . . . . .Beam Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,742 1800 . . . . . . . . . . . . . . . . . . . . .Proximo Spirits . . . . . . . . . . . . . . . . . . . . . . . . . . .805 Juarez . . . . . . . . . . . . . . . . . . . . .Luxco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .796 Montezuma Tequila . . . . . . . . . .Sazerac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .550 El Jimador . . . . . . . . . . . . . . . . .Brown-Forman Beverages . . . . . . . . . . . . . . . . . .287 House of Cazadores . . . . . . . .Bacardi USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283 Margaritaville . . . . . . . . . . . . . .Sazerac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255 Familia Camarena . . . . . . . . . . .E & J Gallo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250 Total Leading Brands 10,123 Others 2,157 Total Tequila 12,280 (p) Preliminary. Source: Handbook Advance 38 • Beverage Dynamics • www.beveragedynamics.com • May/June 2013 2012p . . . . . . . . . .3,130 . . . . . . . . . .2,000 . . . . . . . . . .1,800 . . . . . . . . . . .925 . . . . . . . . . . .810 . . . . . . . . . . .560 . . . . . . . . . . .318 . . . . . . . . . . .298 . . . . . . . . . . .270 . . . . . . . . . . .475 10,586 2,384 12,970 % Change '11/'12 . . . . . . . . .-4.6% . . . . . . . . . .6.7% . . . . . . . . . .3.3% . . . . . . . . .14.9% . . . . . . . . . .1.8% . . . . . . . . . .1.8% . . . . . . . . .10.8% . . . . . . . . . .5.3% . . . . . . . . . .5.9% . . . . . . . . .90.0% 4.6% 10.5% 5.6%