Sitting Down with Sauza
With Today's Trends, Quality Tequila is Poised for New Revenue Roles

No longer relegated to being the shot of choice for college party-goers, pink-slip recipients or the broken hearted, tequila of late has been breaking barriers and enjoying a renaissance of its fabled heritage and tradition. On the contrary, it has risen above past stereotypes to become a bona fide bastion of bar business for those who have taken the initiative to educate themselves with it, share that education with guests and promote its quality and versatility.     Knowing this, the minds behind the expansion of the Sauza Tequila family not only have been satisfied, but they have been encouraged — by the role Sauza has played in the emergence of tequila as a spirits legend — and by the role they are focusing on now, continuing to see tequila as a growth category, expanding consumers’ minds on the way the spirit is enjoyed.
    In a different twist for this Behind the Brand segment, Nightclub & Bar asked a few key questions to two of Sauza’s biggest advocates, Andrew Floor, U.S. senior marketing director, and Barbara Liss, brand manager, Sauza Tequila, Beam Global Spirits and Wine, for their take on where tequila is, where it will go and where Sauza fits into these latest happenings.

NCB: What are Sauza representatives most excited about today?
Floor and Liss: While it won’t happen overnight, the tequila category looks as if it’s beginning to fulfill its potential as the new white spirit. Growth is being fueled in part by a strong Hispanic influence but more so by the adoption of tequila in the bartending community. Bartenders in particular are realizing that tequila has all the quality options of other popular spirits categories, the production controls of Champagne, the heritage and craftsmanship of Cognac and the mixability and versatility of vodka and rum. The most exciting thing about the category growth is that it’s being driven by quality premium and super-premium brands as the tequila consumer slowly shifts from the classic ‘frat boy’ party image into the more sophisticated realms of premium spirits. Simply put, as consumers become more tequila literate, they make more informed brand selections on the basis of quality and authenticity, which is why Sauza brands like Hornitos and Tres Generaciones are doing so well.

NCB: What do you observe of today’s overall spirits trends and Sauza?
Floor and Liss: Consumers have been increasingly moving away from beer into the world of spirits over the past few years due to the versatility and flexibility of the spirits category. And while they’re not necessarily drinking more, they are definitely drinking better as the spirits category continues to enjoy the ‘trading up’ trend. In 2005 alone, the Distilled Spirits Council (DISCUS) sites spirits volume increases by 5.8 percent, 6.5 percent and 10.6 percent respectively in the premium, high end premium and super-premium categories.
    According to AC Nielsen, the Sauza family of tequilas enjoyed a 19.6 percent increase in volume at the end of 2005.  

NCB: What are important happenings with tequila sub-categories?
Floor and Liss: We’re finding consumers are much more open to broadening their tastes and experimenting with the higher-end reposado and añejo tequilas. Sauza is fondly referred to by Mexicans as Nuestro Tequila (our tequila), and we’re seeing more and more consumers looking to enjoy Sauza just like they do in Mexico — by sipping and truly enjoying the high quality taste. NCB