Stateways

Stateways May-June 2014

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

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51 StateWays Q www.stateways.com Q May/June 2014 early last year. The brand was conceived by Clooney and longtime friends Rande Gerber, founder of Gerber Spirits, and Michael Meldman, CEO of Discovery Land Company, after some tequila-fi lled nights and years of working with a master distiller. Casamigos is currently available in Blanco and Reposado, with a suggested retail price of $44.99 and $49.99 respectively. This April Casamigos teamed up with Sid- ney Frank Importing, as the exclusive importer and distributor of Casamigos Tequila in the U.S. and the Caribbean. The privately-held and family-owned importer is best known for turning Grey Goose Vodka and Jägermeister into iconic superpremium brands. Rapper Sean "Diddy" Combs was instru- mental in propelling the ultrapremim Ciroc Vodka brand to stellar heights, and Diageo is no doubt betting on a similar boost for its newly acquired DeLeon Tequila brand. The company has entered into a 50/50 partnership with the musician. DeLeon is available in dia- mante, reposado, anejo and extra anejo expres- sions, ranging in prices from around $140 to more than $800. Singer Justin Timberlake co- founded the superpremium 901 Te- quila brand with Kevin Ruder in 2009. Now, Timberlake has teamed up with Beam to relaunch the brand as Sauza 901. With a suggested re- tail price of $29.99, the tequila is being rolled out in select markets this year. The 80-proof, 750 ml bottle will feature new co-branded packaging, including a distinctive bottle and a unique label design. "Justin has a real passion and love for tequila, had that for awhile" says Gary Ross, senior di- rector of tequilas for Beam. "He's not a celebrity endorser; he is the founder of a brand that makes the connection more meaningful and a more in- teresting partnership." Beam will support the rollout with social and digital advertising. Tim- berlake will integrate Sauza 901 as the lead brand sponsor of his global tour, the 2020 Experience, which kicked off last year and is running through this year." Support will also include on-premise sampling and in-store programming. "Celebrities are a quick way to gain awareness for a brand," says Stickler at Brown-Forman. In a twist on that theme, Herradura offers culinary or mixology celebrities an opportunity to become per- sonally involved, to visit Casa Herradura and select their own barrels. Chef and restaurateur Rick Bayless recently did just that, then bottled and auctioned off the bespoke tequila to benefi t a charity. MAS ARRIBA C elebrities aside, tequila is a rising star in terms of vol- ume growth and revenues. "Overall, the category has been growing and interest in the category has been growing," ob- serves Ross. Fueling that inter- est, he says, is the proliferation of new brands, coupled with a trend towards premiumization. "Consumers have been gravitat- ing towards 100% agave tequi- las, which by their nature tend to be the premium and super- premium brands. That's a big trend." Beam brand Sauza is a category leader, which was up more than 13% nationally to 2.033 million cases in 2013, according to Beverage In- formation Group's Handbook Advance 2014 [In the control states, Sauza gained 5.9%]. Other tequilas in Beam's port- folio include Sauza Hornitos and Tres Generaciones and El Tesoro de Don Felipe. Tequila category sales volumes were up 5.2% nationally Beam recently launched Hornitos Black Barrel, a 100% agave tequila triple- aged in specially prepared barrels. Proximo Spirits took over U.S. distribution of Jose Cuervo Tequila last July; the brand sold more than 3 mil- lion 9-liter cases nationally in 2013. Proximo's tequila portfolio also includes 1800 Tequila, which grew 11.6% in 2013 to 1.03 million 9-liter cases nationally, as well as Maestro Dobel, Gran Cente- nario and Zarco tequilas. The 901 Tequila brand has been relaunched as Sauza 901, a recent addition to Beam's impres- sive Sauza Tequila portfolio, and in partnership with brand co-founder Justin Timberlake. Patron is now the second-leading tequila brand in the U.S., with national sales of nearly 2.1 million 9-liter cases.

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