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: https://read.dmtmag.com/i/303900
46 Beverage Dynamics • May/June 2014 www.beveragedynamics.com Tequila's Rising Star liqueur with tequila as its base. Jose Cuervo, which had tested the fl avored tequila arena early on, now has launched a cinnamon-infused sil- ver tequila called Cinge. Available na- tionwide, the 750 ml bottle is priced $17.99. Ad agency McCann Erickson New York has created animated 15- and 30-second spots, a print ad and a graphic novel featuring a Mexican scorpion, which is to be the mascot for Jose Cuervo Cinge. Sister brand 1800 Tequila recently released a coconut-in- fused tequila variant. "Brands are being careful about the fl avors they think make sense from taste profi le and usage perspectives," says Ross. The new Hornito's Lime Shot is a good example. "We took our plata and added the refreshing taste of lime and a hint of salt, which relates to the salt and lime ritual. The idea was to put that ritual in a bottle and have a great-tasting way to drink tequila that is authentic and true to the spirit." Hornitos Lime Shot is currently available nationwide, with a suggested retail price of $17.99 - $19.99 for a 750 ml bot- tle; it will also be available in 50 ml and 1 liter sizes. Other fl avored variants in the market are Avion Espresso Liqueur, which launched last year with an suggested retail of $24.99, and Peligroso Cinnamon from Diageo. Not quite a fl avor and not quite a tequila either, Malibu Red is a rum-tequila hybrid. "We've seen the blend of Malibu Coco- nut Rum and tequila as a way to expand our consumer base by appealing to tequila drinkers, with new occasions and with new mixability options," says Josh Hayes, Malibu senior brand man- ager at Pernod Ricard. The mash-up came about when Malibu brand ambassador, the rapper NE-YO, was adding tequila to Malibu Coconut Rum to give it an extra kick. "Malibu Red is poised to capture what we refer to as the 'fun tequila' occasion," says Hayes. "Clear spirits are highly mixable. Malibu's coconut fl avor helps smooth out the burn from tequila that some con- sumers fi nd polarizing." CHARMING EXPRESSIONS Despite the new product emphasis on aged sippable expressions, silver tequila reigns, especially in the shots and cocktail arena. The Margarita is the most popular tequila drink, but mixologists are busy experimenting with new cocktails taking advantage of tequila's unique fl avor profi le. "Silver remains the volume driver for most tequilas, however with Avion, we see a strong mix of reposado and anejo," says Fagnan at Tequila Avion. "Brown spirits drinkers are moving towards anejos and tequila afi cionados tend to drink reposados more often." Ross at Beam too sees the category growth trend in silvers and platas, as well as increased consumer awareness of the im- portance of 100% agave content. "We experienced a lot of success when we introduced our Sauza Blue brand, which is an example of both those trends because it is 100% blue agave, and although have both silver and repo expressions, the silver has by far been the fastest growing." "Younger consumers are into shots, but as they mature and exper- iment more, they tend to move be- yond blancos and get into repos and anejos where there is more sipping and appreciation of the complexity of the liquid," comments Valdez. Unlike other brands, Cazadores positions reposado as its key expression. Re- posados, he adds, are the most ver- satile expression, because they can be sipped or mixed in cocktails. Barcardi is in the process of tweak- ing Cazadores packaging, to be ready for the 2014 holiday season. The re- pack is aimed at attracting a wider audience, says Valdez. The new look will be more masculine, with a more majestic image of Cazadores iconic deer. The bottle will tip its hat towards other brown spirits like whiskey and tout the brand's heritage and au- thenticity. "The packaging is a huge investment, which will open up many new doors" he says. "The occasion for tequila is varied. There will always be peo- ple who want to do shots, and that's great if they equate cele- brating with tequila," notes Cohen at Patron. "Consumers are realizing how many great cocktails they can make with tequila. Although the Margarita is still the number-one cocktail in the U.S., anything you can make with other white spirits, you can make with high-quality tequila." TEQUILA SUNRISE The spirit seems poised for continued growth and a bright future, agree industry execs. "Tequila is one of the three spirits categories that is currently gaining share in the U.S.," points out Schuart at Campari Amer- ica. "The biggest opportunity for the tequila market right now is to continue to educate consumers. Consumers are consistently becoming more educated about the spirits they drink, where they come from and how they are distilled. As the cocktail cul- ture permeates the pop culture canvas of the U.S. and the bar- tender community continues to embrace tequila as part of their craft, tequila will be among the leading spirits to drive growth in the years to come." "We are so optimistic, because the outlook for the category is very healthy," notes Stickler. "Premium-plus is on a roll. The segment is up 13% the last three years globally, and most of that is in the U.S. and is projected to stay at that pace," she says, adding up all the positives for the category. "There is nowhere to go but up." BD Partida Tequila just launched a new marketing campaign directed at consumers called "Start the Party/Start the Partida." The campaign en- courages consumers to enjoy Partida and have fun, hoping to tap into the celebratory nature of tequila. The new integrated campaign for the 100% blue agave brand includes public relations, social media, a website redesign, POS materials and digital advertising.