Beverage Dynamics

Beverage Dynamics May-June 2014

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.

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www.beveragedynamics.com May/June 2014 • Beverage Dynamics 45 Tequila's Rising Star The latest in wood fi nish experimentation is Hornitos Black Barrel, which was launched this spring. The 100% agave tequila is triple aged: fi rst in traditional American oak barrels for 12 months, then in deeply charred barrels for four months to imbue it with the rich character, golden amber color and smoky notes tradi- tionally found in whiskey; fi nally, the tequila is aged in specially-toasted American Oak barrels for two months to impart a creamy, vanilla character and depth and complexity. "The idea behind Hornitos Black Barrel is there has been tremendous interest in both bourbon and Scotch, and we wanted to create a tequila that had an interesting taste profi le reminiscent of Scotch," explains Ross. The variant fi rst debuted in Mexico, he says, where the product was highly successful. In the U.S., the suggested retail price is $29.99 per 750ml. FLAVORED TEQUILA Way back in 2004, the Tequila Regulatory Council allowed the production of fl avored tequilas. A decade later, fl avored tequilas haven't taken off the way they have in vodka or rum. But a few are appearing on the market. "When fl avors were originally introduced, I think it was too early in terms of con- sumer involvement with the category and the education level," posits Valdez at Ca- zadores. But times and the consumer have changed. "The younger legal-age drinker has grown up with the expectation of having many options. They see all these fl avors in vodka and I think they are expecting that in tequila as well." Cazadores, he is quick to say, is not contemplating any fl avored tequilas. "There is huge opportunity for innovation within the tequila category and the allow- ance of fl avors in tequilas just provides another option for new products," says Schuart at Campari America. Released late last year, coffee-fl avored liqueur Cabo Diablo has seen great success in initial markets, including New York, New Jersey, Connecticut, Massachusetts and Wisconsin, with a suggested retail of $22.99. Cohen at Patron noted. "Tequila already has such a natural fl avor from the agave, and then the fl avors between the various expressions are so different; there is no need to mask that." As for Patron XO Café, he is quick to point out that the product is a coffee SMOKE SIGNALS Mescal is a sister spirit to tequila. It is fer- mented and distilled from the maguey, a type of agave. Mescal is largely produced in Oaxaca, Mexico, although good examples are found in Guerrero, Guanajuato and Zacatecas. It is a hand-crafted tradition, made by artisans using ancient techniques, including cooking the pinas in pit ovens, which gives mescal its signature smoky aroma and flavor. More and more tequila aficionados bitten by the agave bug are exploring the mescal category. "Agave spirits as a whole are becoming a bigger segment. Tequila is becoming so popular that people are now embracing mescal," comments Kathleen Schuart, senior marketing director of White Spirits for Campari America "Mescals are showing a lot of interest," says Rick Ostrand, spirits buyer for Stateline Liquors in Elkton, MD. "There are a lot of exciting mescals available, all on the high end." But, he adds, compared to tequila, sales of mescal are small. "Mescal may not be for everyone, because of its taste profile," says Rene Val- dez, senior brand manager for Bacardi, USA. The spirit appeals to travelers who have tasted mescal in Mexico and to mixologists who have embraced the smoky spirit as a differentiating ingredient in cocktails. "Mes- cal definitely is hot right now, on the East and West Coasts." "You see more and more mescal in bars; the industry likes it," concurs Jose Her- mosillo, founder of Casa Noble Tequila. "But it will be interesting to see if consumers will accept the taste profile. Mescal is normally very earthy and smoky." "Mescal is an acquired taste," agrees Ann Stickler, senior vice president and managing director of Tequila at Brown-For- man. The category, she notes, is small but growing. "We're keeping an eye on mescal; it should be interesting to watch." "With its unique fl avor profi le, mescal has growing appeal." LEADING BRANDS OF TEQUILA '12/'13 BRAND SUPPLIER 2012 2013P % CHG Jose Cuervo Proximo Spirits 3,165 3,030 -4.3% Patron The Patron Spirits Company 2,000 2,075 3.8% Sauza Beam Inc. 1,797 2,033 13.1% 1800 Proximo Spirits 925 1,032 11.6% Juarez Luxco 810 820 1.2% Familia Camarena E & J Gallo 420 571 36.0% Montezuma Tequila Sazerac 555 565 1.8% El Jimador Brown-Forman Beverages 317 331 4.4% House of Cazadores Bacardi USA 298 293 -1.7% Margaritaville Sazerac 270 272 0.7% Total Leading Brands 10,557 11,022 4.4% Others 2,398 2,608 8.8% Total Tequila 12,955 13,630 5.2% (p) Preliminary. Source: Handbook Advance. To learn more go to www.bevinfostore.com (Thousands of 9-Liter Cases)

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