Mexican Fiesta
Distilled spirits products from Mexico are enjoying increasing
popularity,
and it looks like sales are going to keep rising for some time.
By Robert Plotkin
PHOTOGRAPHY BY JOHN MONTANA
With the growth and acceptance of
Mexican restaurants in the U.S. continuing to rise, and with the Mexican population
exploding throughout the nation, it's no surprise that beverages from south
of the border are seeing heady days. Tequila sales gained a hefty 8.6% in 2004
in the U.S., according to the 2005 Adams Handbook Advance. In the control
states, tequila gained an equally healthy 8.4%. Mexican liqueurs, led by Kahlua,
are still popular choices, and Mexican brandies continue to carve out a niche.
Among tequilas, Jose Cuervo still dominates the market, with more than a 40% share of total category sales. The brand reached sales of 1.4 million 9-liter cases nationally in 2004, a 5% increase (up 6.9% in the control states).
Jose
Cuervo tequila, imported by Diageo, commemorated the distillery's 200th
anniversary by releasing the limited-edition Reserva de la Familia.
"Given that tequila only comprises 5% of the American distilled spirits market, there is tremendous opportunity for growth. The category is expected to grow faster than any other spirit category in the U.S., particularly within the super- and ultra-premium segments, both of which are anticipated to grow at double-digit rates," noted Bevin Gove, marketing director for Jose Cuervo.
"There is a mystique and romance surrounding Mexican spirits that few other products enjoy," said Larry Kass of Heaven Hill Distilleries, importer of El Conquistador and Two Fingers Tequilas. "Whether you're talking about tequila, mezcal or Mexican beers, they've all seemingly captivated the American drinking public."
Back On Track
One thing for certain, good times have once again returned for the tequila industry. The agave crops have fully recovered from the devastating blight of several years ago.
The line
of Sauza tequilas, from Allied Domecq Spirits USA, notched a 10.4% sales
gain nationally in 2004.
"A lack of agave is no longer an issue," stated Andrew Floor, Sauza global brand director. "The soaring prices experienced through the crisis proved sufficient motivation for both established tequila houses and agave growers to increase the size of their plantations. The major tequila houses responded to the agave crisis by increasing controls over their estate plantation. Demand for open market agave has fallen significantly and kept costs low."
The prolonged shortage of mature agaves ultimately caused retail prices of high-end tequilas skyward. With the supply of agave once again sufficient to meet demand, what can retailers expect to happen to tequila prices?
Master distiller Felipe Soto Mares of El Duende thinks relief for consumers is around the corner. "I believe we will see the current rate of retail price increases level off soon. We in the tequila industry are well aware that our products need to be priced competitively with vodka. We are also looking at the ever-growing rum market. Pricing issues are an ongoing concern and something that we are always reviewing."
Tequilas in the Lime Light
Any discussion of the current status of tequila must begin with Jose Cuervo, the largest producer of tequila and the best-known tequila brand in the world. The distillery's latest release is the silver-styled Jose Cuervo Clásico Tequila. It's a blend of unaged tequilas and specially selected Cuervo tequilas mellowed in oak barrels. Don't be mislead by its apparent simplicity -- this is a complex and appealing tequila.
To commemorate the distillery's 200th anniversary, the tequila-producing giant introduced Reserva de la Familia de Jose Cuervo, a limited edition, vintage-dated añejo. As the name implies, the tequila was once the private domain of Jose Cuervo and his descendants. Reserva De La Familia blend is comprised of tequilas aged in both new charred French and American oak barrels. The spirit is hand-bottled, numbered and sealed in wax.
El Tesoro
Platinum, from Jim Beam Brands, is a superpremium silver tequila bottled unfiltered
and unaltered.
Cuervo Tradicional Reposado is the best selling 100% agave tequila in Mexico. The vintage-dated, limited production tequila is aged in white oak casks for six months "Overall, the Jose Cuervo portfolio is growing at a rate of 6.9% in the first quarter of this year," reported Gove. "The vigorous sales are being fueled by Jose Cuervo Tradicional."
The Sauza Tequila line, from Allied Domecq, is continuing to make its mark: the second best-selling tequila in the U.S. market increased sales by 10.4% to more that 1.22 million 9-liter cases.
The newest member of Sauza's Estate Collection is Tres Generaciones Plata, the silver version of the distillery's preeminent añejo. The 100% agave tequila is triple-distilled in alembic stills and bottled within 24 hours. Long the best-selling reposado tequila in the U.S., Sauza Hornitos is distilled in both alembic and column stills. Hornitos is then aged for four to six months in large oak vats, just enough time to soften its personality without being appreciably affected by the tannins in the wood.
The Patron line
of tequila, from The Patron Spirits Company, saw a 69.3% sales increase nationally
last year.
El Tesoro tequilas, from Jim Beam Brands, features El Tesoro Paradiso, a revolutionary style of tequila. It's a five-year-old, hand-crafted and finished in French oak previously used to age A. de Fussigny Cognac. El Tesoro Platinum is a superpremium silver bottled unfiltered and unaltered, exactly as it came out of the still. "El Tesoro tequila is made from estate grown agaves so it was unaffected by the recent agave shortages," said Jeremy Betts, Jim Beam's associate marketing manager of superpremium brands.
Also imported by Jim Beam Brands is the brand credited with sparking the 100%
agave tequila boom in the U.S. in the mid-80s. Made at La Gonzaleña distillery,
Chinaco Añejo is an alembic tequila that is aged in American oak for
up to three years. Its less assertive style makes it an ideal entrée
for someone new to tequila.
