Tequila

Adios Slammer... HOLA ON THE ROCKS

Tequila had a badass reputation for getting its drinkers smashed quickly. Today that outdated modus operandi is almost gone, along with the lemon wedges and salt, and in its place, the sophisticated drinking occasion and the cocktail.

Now tequila can boast classy friends in high places with celebrity power to boot.

New and innovative tequila brands including Sesión, Casamigos, el Jimador and Patrón are driving awareness around tequila as a super-premium spirit to be savoured. Celebrity endorsement and ownership, Casamigos, founded by George Clooney and Rande Gerber and Sesión, founded by Jennifer Hawkins and Jake Wall for example, is influencing the new perception. Tequila is now considered a spirit with cachet rather than good for the shooter at the end of the night.

It is also finding a new place in the creative cocktail world. Many bars and bartenders are supporting tequila as an interesting alternative in cocktails that usually call for the more traditional white spirits, such as vodka.

Tequila as a category in Australia is on the rise. Latest IRI data reports tequila and mezcal sales in Australia are valued at $81 million and represent 2.2 per cent of all total glass spirit sales. In dollar growth it delivered 3.2 per cent of glass spirits and 1.8 per cent volume growth, higher than the growth of glass spirits in total. There are sixty registered tequila brands in Australia, however, it is only the top 12 that are generating sales of more than $1 million per annum and collectively account for almost $9 in every $10 spent on tequila. Less than half of the brands delivered growth in the year ending 04/11/2018 led by el Jimador. The number one brand in terms of dollar sales is Jose Cuervo Especial.

“Tequila sales are still heavily reliant on wellknown brands in Australia. There are a number of emerging brands that are well positioned to challenge these leading tequila brands calling on the same cues that are driving growth for glass spirits in general – authenticity, artisan or craft batches, locality and terroir,” says Stephen Wilson, IRI Liquor Channel Manager.

“Tequila, however, has yet to see the same level of innovation experienced in other spirit

Patrón Tequila Harvest Sesión Mocha Cocktail

types e.g. gin, and in order for continued growth further innovation is required.”

The guardians of Tequila in Australia say that education is key to the continued growth and appreciation of tequila as a premium spirit.

Tim Freeman, Managing Director of 100 per cent Australian-owned tequila brand, Sesión, owned by Jessica Hawkins and her husband, Jake Wall, says this is a big part of their marketing strategy.

“Back in 2013 when we started to work on the concept of Sesión the category was no where near what it is today. Tequila was not received well as a spirit. It was the shot at the end of the night and we wanted to get away from that mentality.

“There are those people that have had a huge night and then drink tequila at the end of it and blame tequila for their hangover. That is a bit of a problem in Australia. That, and there is a lot of bad tequila.

“We want to make it the drink you start with and not the drink you finish with.”

Tim says a targeted campaign on educating Australians on the nuances of tequila is needed, but says the bartenders and the on-premise scene is helping a lot with that. Sesión has recently partnered with creative agency M&C Saatchi in a move to promote and educate around the tequila category.

“One of the reason’s we have partnered with M&C Saatchi for Sesión is we need to shake things up and get the brand out there. The whole category really needs to do that. M&C Saatchi will be great for us.”

Sesión’s biggest market is the US where the brand has built its market share on the quality and credibility of the product. Sesión was developed in conjunction with the Beckman Family who have been distilling tequila for generations and are descendents of the Jose Cuervo family. In Australia the brand leverages off the celebrity factor of Jen and Jake but not in the US.

“In Australia we will have to overcapitalise to get brand awareness and market share but we want to do that.”

Richard Dredge, Brand Manager for Tequila, Brown Forman says there is certainly growing interest and experimentation within tequila.

“The majority of tequila (48 per cent) is now consumed in a cocktail and (39 per cent as a shot), which is very different to how tequila was

Sesión’s Jennifer Hawkins and Jake Wall at the distillery

consumed many years ago (Source- Shopper Tracker On-Premise 2018). There is also a new wave of appreciation for 100 per cent Agave, quality tequilas that can be sipped and enjoyed rather than being consumed instantaneously. This could be driven by the media focus on the celebrity-endorsed tequilas which has definitely helped the category progress. Interestingly, although the main source of growth within the tequila category in Australia has come from Silver (Plata), el Jimador is seeing growth in Gold (Reposado).”

Brown-Forman is proactive in educating both trade and consumers around the tequila category and how to drink past purely shots. They have worked closely with key accounts to provide “Tequila Cocktail Kits” to aid in the creation of tequila classics such as the Margarita, Sangrita and freshly juiced long drinks. They are also fortunate to have a beautiful home place for el Jimador and Herradura Tequilas, a 148- yearold Hacienda in the middle of tequila country, Amatitán, Jalisco.

Through its on trade Mi Casa Su Casa program, a lucky few experience how tequila is made, from the harvesting of Agave through to the maturation process.

“We’ve found sharing this amazing experience as well as our unique history and story with our Mi Casa Su Casa partners has cemented great relationships,” says Richard Dredge.

“Earlier this year we’ve also partnered with Australian soft drink brand Capi to bring Mexico’s most popular drink, the Paloma, to Australia via bundle deals in the off-premise, again helping educate on new ways of drinking tequila for Australian consumers.”

Jose Cuervo has also activated a program to improve education on tequila and has been running consumer masterclasses on their premium tequilas. Their education program over the past few months has been well received and puts a strong focus on educating bartenders and consumers.

“There is definitely still some work to be done in terms of educating the consumer, however, over the past 12 months I have seen a dramatic change in perception towards the category. There has been a noticeable shift from the idea tequila should only be consumed as a shot, to drinking premium tequilas in tasting glasses (much like whiskey), to mixing it in cocktails, and to using it with your regular mixers such as soda and ginger beer. The growth we have seen at Jose Cuervo in our premium ranges definitely supports this shift,” says tequila specialist at Proximo, Hayley Dixon.

“We recently did a tequila masterclass in the park followed by barefoot bowls which sold out.”

Jose Cuervo has also run several masterclasses in different states where they have teamed up with local chocolatiers for pairings with positive consumer feedback.

“Both consumers and bartenders are excited to learn more about tequila because there hasn’t been a focus on the spirit for so long,” Hayley exclaims.

“When I am behind a bar these days I am constantly asked for tequila and soda or tequila and tonic; two years ago I had never been asked for that. I can’t go past a Jose Cuervo Tradicional, Angostura bitters, ginger beer and lime at the moment!”

As for other ways of serving Tequila, Hayley sees as being hot right now include, Tequila and Tonic and Tequila Spritzes.

“Gin was the trend last summer, but it has been done now. Tequila and tonic pairs so well and the versatility of the spirit means you can get super creative with your tonics and garnishes.

“I can’t wait to see all the creative ideas the bartenders across Australia come up with for the warmer months,” says Hayley.

Alejandro Archibald Brand Ambassador, Patrón Tequila agrees. “Margaritas and shots are still the most popular way to consume tequila amongst Australian consumers while other cocktails such as the Paloma and the Old Fashioned are growing in popularity. Consumers are also gaining interest in sipping fine tequilas neat or in bespoke cocktails at highend cocktail bars.

“People are really starting to see that tequila can be a high-end spirit that deserves the same treatment and respect as other spirits such as premium vodka or fine whiskey.” drinks trade|27