With overall tequila sales rising and
upscale expressions becoming an everlarger niche, retailers and tequila
producers see the category's fortunes
increasing into the future.
By David Lincoln Ross
oday's tequila marketers continue to innovate, with new and established creating category-expanding
sparkling and flavorful line extensions, launching scores of 100% agave entries at a variety of retail price
points from $25 on up to triple-digits, and devising new promotional, merchandising and advertising
programs with greater frequency and reach as never before.
Yet for all that activity, surely the biggest news in years in this growing category is that the Jose Cuervo brand is moving on July 1 from worldwide drinks giant Diageo, its longtime global and U.S.
marketer, to Proximo Spirits, a New Jersey-based importer owned by the Beckman
family, whose ancestor, Jose Cuervo, founded the Mexican distillery in 1795.
Cuervo remains the U.S. leader, with sales of more than 3.1 million cases
nationally in 2012, exceeding the next leading tequila brand, Patron, by more
than a million cases, according to the Beverage Information Group's 2013
Handbook Advance. For the record, Diageo North America said through a
spokesperson: "Diageo remains committed to the tequila category and Don
Julio will be our main tequila offering for the time being."
For his part, Juan-Domingo Beckmann, Casa Cuervo's chief executive officer, said in a widely reported statement, "Diageo has been a significant partner
of Jose Cuervo for many years, but with 10 generations of tequila-making in
the family, Casa Cuervo is excited to embark on this next chapter in the strategic expansion of its world-renowned tequilas."
Shortly after Beckman's announcement, Proximo's CEO and president,
Mark Teasdale, commented in a prepared statement: "Jose Cuervo is the
world's biggest tequila brand, and we are excited to take over its sales, marketAs of July 1, the sales, maring and distribution for the USA and Canada."
keting and distribution in the
For Proximo Spirits, which was formed in late 2007, the arrival of the Jose U.S. of Jose Cuervo tequila
Cuervo juggernaut is bound to be a transformational event. It will surely place portfolio will be handled by
new operational pressures on its sales and marketing departments, while simul- Proximo Spirits, joining the
taneously offering it greatly increased sales leverage with its distributors as well top-selling tequila brand in the
U.S. with Proximo's 1800
as merchants, on- and off-premise. All this for a company which has since its
tequila portfolio, which is now
formation turned in an impressive record of performance with its premium the fourth best-selling tequila
1800 Tequila brand, whose sales chalked up a dazzling 14.9% gain to 925,000 in the U.S.
T
Beverage Dynamics • www.beveragedynamics.com • May/June 2013 • 37
