Tequila Trends in the First Half of 2017

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57qNow that the first quarter of 2017 is in the books and we are well into spring and summer margarita season, here’s what were noticing at Tequila Aficionado Media Headquarters.

The Hits Just Keep on Coming!

As we pointed out in The Agave Shortage of 2017 Is Worse Than We Thought, we are smack in the middle of a shortage with no end in sight.

Yet, here at HQ, since January 2017, we’ve solicited, and been solicited by, no less than 50 brands of tequila, mezcal and sotol for our widely viewed Sipping Off the Cuff© series.

Some are labels that have been around for awhile, or re-launched with extended expressions to their core lines, and presumably, flush with cash from investors (we’ll circle back to this subject a bit later).

But, most are start ups in the agave spirits arena.

At press time, agave prices have skyrocketed from 1.7 Mexican pesos ($0.089) per kilo in 2013 to 10 pesos at the end of 2016, according to this recent article in Barron’s.

Our own sources claim that agave prices in May 2017 have hit a high of 14 pesos per kilo.  During the crisis of the late 1990s, agave prices reached an unprecedented 18 pesos per kilo!Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

The price hike has even taken a bite out of Jose Cuervo’s profits.  They more than made up for it, though, with their successful IPO this past February.

You may ask, “Don’t these new brands know we’re in the midst of another agave crisis?”

Bear in mind that many of these labels have been in the works for at least 3 years or more, well before a shortage was predicted, and well before this happened…

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

The timing of an agave spirit’s launch is, more often than not, dependent on its financial forecasts.

If you’re one of these newcomers, just take a deep breath and jump in.

Don’t forget to send us samples, too!

The Resurgence of the Reposado

I once asked Christopher Zarus, the innovator of the world’s only take home tequila tasting kit, TequilaRack®, why he chose to showcase only small batch, micro-distilled reposados from esteemed tequila making families in his collections.

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

He explained that a well made reposado was one of the most difficult tasks in creating a dynamic line of tequilas.  He felt that it could literally make or break a brand.

When rocker Roger Clyne first entered the market with Mexican Moonshine tequila, he insisted on doing so with a reposado, even though he admitted, “…at the time, this was considered commercial suicide.”

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

Traditionally acknowledged as the ideal half-way point between a brilliant blanco and an elegant anejo, the reposado, for at least the past few years, seemed to have been treated by some brands as an afterthought, at best.

Not so in 2017.

Check out the reposado episodes of this season’s Sipping Off The Cuff© to see what we mean.

Especially take note of:  Tequila 512, 4 Copas, Azunia, Amorada, Armero, El Consuelo, Pasote, Alderete and Don Pilar.

Peter Piper Picked a Peck of Pickled Peppers

Infused tequila is the new black.

But not just any infusions.

These are well crafted tequilas or agave spirits, sometimes laced with exotic spices, and simmering in off-the-charts heat from the Scoville scale.
Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

We first encountered this trend with 2016’s lively Brand Of Promise© Infused Tequila winner, Soltado.  A versatile and balanced anejo injected with Serrano peppers and cinnamon, it blew taste buds away.

With the popularity of pepper infused spirits like Fireball Whisky, and subsequent copycats, it seems only natural that agave spirits companies take notice.

Of the upcoming crop of pepper saturated agave is…

Spider Monkey Agave Spirit (Serrano pepper and ginger); Get Hot Tequila, a reposado imbued with Habanero peppers; and, speaking of Fireball, the man responsible for its immense popularity, Richard Alexander Pomes, presents Ghost Tequila, enlivened by the infamous, India-born ghost pepper.

Just remember that when you’re basking in the endorphins from having your salsa and drinking it, too, that the addition of alcohol on your tongue reactivates the oils inherent in the pepper’s capsaicin.

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

It’s like Groundhog Day for your palate!

Millennials are Stealing Your Cocktail Recipes

Cocktail recipe photos are hugely popular on just about any social media platform that they are shared on.  The follower engagement is off the chain, in particular with Millennials.

It’s a well known fact that the prevailing cocktail culture around the world is driving the Spirits Industry.  But, once these concoctions and their ingredients are made public, they are being pilfered by these young people and served to friends and family at their cribs.

It’s apparent that Millennials seek to drink better than their older relatives.  Given that, signature cocktails are still a valuable commodity to agave spirits brands, but not necessarily for bars and restaurants.

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

So, you mixologists—carry on.

Millennials are stealing your cocktail recipes!

Tequila has Outgrown Riedel Glassware

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57qIt’s official…

Tequila–and most all agave spirits, for that matter–has outgrown the Riedel Ouverture tequila tasting glass.

Don’t get us wrong.  It’s still a viable tool.  But…

The level of quality craft agave spirits flooding liquor store shelves, and the emphasis on single estate and organic tequilas and mezcals, now demands a better sipping glass in order to enjoy their unique, regional properties.

This fact had not been lost to oak heads.

For several years, whisky and scotch drinkers had opted to use the Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57qGlencairn glasses to not only enjoy anejos and extra anejos, but blancos and reposados, as well.

It can also be argued that the use of inadequate tasting and nosing glasses in the past few years has influenced–and possibly skewed–the results for valuable medals awarded by some of the most respected tasting competitions around the country.  So much so, that the judges’ final decisions are laughable.

To that end, we’re excited to be working with Romeo Hristov, proprietor of Chisholm Trail Craft Glassware, testing glasses produced by Stolzle, Luigi Bormioli, and his own more historically accurate vessel prototypes for tequila and mezcal.

You’ll be seeing a lot of these new glasses throughout the 2017 season of Sipping Off The Cuff©.

Watch for a future Open Bar where we’ll visit with Mr. Hristov, in depth.

Tequila Brands:  It’s a Buyer’s Market Out There

Earlier, we hinted about some dormant tequila brands that have suddenly been revived by wads of money.

It seems that every other day, family-run investment firms contact us at HQ looking for hot tips on where to park their cash that’s burning holes into their conservative, yet very deep, pockets.

We were also recently offered a fee by a well known celebrity to taste test the newest version of his tequila, versus the Usual Suspects.  We gracefully declined.

But it got us thinking.  Whether you’re a megastar or a moneybags…

Why go through all the trouble of launching, or relaunching, a tequila from scratch when there are so many labels out there for sale?

As predicted by Patrón tequila’s Chief Marketing Officer, Lee Applbaum in this  article, the Great Agave Shakeout has begun.

The road to Tequila Nirvana is currently littered with brands that could not sustain the required 5 year threshold of longevity, let alone a 10 year marketing plan.

Many have withered away consumed by mismanagement, overwhelm, lack of distribution support, or simply investment underestimation.

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

Instead of going through all the trouble of conceptualizing and heavily funding a whole new agave spirits marque with a least a dozen other investors, why not take a page from Jim Driscoll, owner of Ekeko Wines and Spirits, and importer of Demetrio tequila?

Seek a distressed brand that had something going for it, and that you can make better.

You may find, after some thorough due diligence, that before hitting the skids the brand showed considerable promise and can be purchased—lock, stock, and barrels—for a song.

Or, you may discover that the concept for the juice was designed exclusively for the international Duty Free market, completely escaping the drudgery of the Three Tier System.

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

The road to the Kingdom of Agave Heaven won’t be any easier, but at least some of the requisite start up costs could be minimized.

Warning:  The Quality of Your Mass Produced Tequila is about to get Worse

Word on the streets of the Highlands of Jalisco is that the Big Boys have bought up all the 3 year old agave in the region.  Younger plants simply do not contain the minimum amount of agave sugars (measured in brix) required by the normas to make tequila.

As soon as 2 year old agaves turn 3, they are sure to be snatched up by coyotes (agave middlemen).

Coyotes for the Usual Suspects are desperately seeking magueys from reputable growers who are now sitting in the catbird seat, ready to hike agave prices even further.

Those boutique agaveros who are holding 4 and 5 year old plants are poised to make a killing in the agave market in the following few months and years.

Meanwhile, back at The Lab…

Analyzed samples of these mass produced tequilas are being rejected because they reportedly contain too little alcohol from blue weber agave, and too much from added sugars.

Tequila Trends in the First Half of 2017 https://wp.me/p3u1xi-57q

Watch for increased use of diffuser technology to extract maximum agave juices and sugars in order to fulfill worldwide demand, and—

Tequila quality to plummet.

Tequila Aficionado Media Presents Last Tequila Standing

national tequila day, last tequila standing, tequila aficionado, TV show, reality show

First ever Tequila Reality Show kicks off on National Tequila Day!

For Immediate Release!

In 2011, eighteen tequila start ups had vied to be crowned the top Brand Of Promise(TM) in the world’s first broadcasted Tequila Reality Show.

Tequila Aficionado Media Presents Last Tequila Standing

July, 2015, San Antonio, TX:  Starting July 24, 2015, National Tequila Day, 45 exclusive episodes of Last Tequila Standing will be streamed daily over Tequila Aficionado Media’s website and on-demand over its own YouTube playlist, as well as featured throughout all of its powerful social networks.

“Through the expansion of opportunities on the Web, and Tequila Aficionado

Last Tequila Standing.
Last Tequila Standing.

Media’s own explosive growth, we are proud to present for your enjoyment, Last Tequila Standing,” declared Tequila Aficionado’s CEO, M.A. “Mike” Morales.

Never-before-seen raw footage of some of the tequila industry’s most promising labels will be aired.  Each will relate their start up stories and demonstrate their tasty signature cocktails, too.

Colorful brand owners, master distillers, and top flight brand ambassadors took the stage with their enduring tequilas, many of which are still thriving even in 2015’s more competitive tequila market.

 The Dare

Judging_LTSIn the late summer of 2011, 18 brave tequila brands took up this challenge–

To appear on the first ever televised tequila reality show to share with the world their personal stories and to participate in a judged tasting competition to be named the Last Tequila Standing.

Rocky Road

As with most TV pilots and shows that are ahead of their time, Last Tequila Standing struggled to find a permanent network home.

“After a series of fits-and-starts, several failed business deals and cable company mergers that never happened, Last Tequila Standing was all but lost,” recounts Morales, a producer and one of the hosts of the show.

From the moment Season 1’s taping had wrapped, Morales worked tirelessly for months with the Executive Producers to try to fulfill the show’s original mission–

To educate and inform tequila aficionados worldwide in an entertaining fashion LTS_Cameraon the finer points of Mexico’s national spirit, as well as to help promote organic, artisanal, small batch, and boutique tequila Brands Of Promise(TM).

“But just a few years later, with the advent of streaming video made popular by services like Hulu, Amazon, and Netflix, the playing field has changed dramatically,” adds Lisa Pietsch, Tequila Aficionado Media’s COO in charge of social media marketing.  “Last Tequila Standing lends itself perfectly to our binge watching audience.”

The Line-Up

Participating tequila brands include…

Alquimia Organic Tequila, Alma de Agave, Crótalo, Cuestión, Don Pilar, Tributo, SilverCoin,  and many others.

In addition, Sal del Mar gourmet sea salt, Casa ZG sangrita mix, and Nature’s Agave syrup are also highlighted.

Guest Starring

Alquimia and Quinta de Gomez, organic tequilas.
Alquimia and Quinta de Gomez, organic tequilas.

Along with Tequila Aficionado Media’s CEO and Tequila Journalist, M.A. “Mike” Morales, Clayton J. Czczech guest judges on Last Tequila Standing.

Also on hand to impart his vast tasting expertise is industry expert Christopher Zarus, inventor of the only take home tequila tasting kit, TequilaRack, which will also be featured extensively.

A Global Event

“Since the taping of Season 1 of Last Tequila Standing, the Tequila Industry has aggressively pursued global expansion into countries like China, Russia, India, and Brazil,” explains Morales.

“Given that our audience is not only viewing Tequila Aficionado from these locations,” asserts Pietsch, “but all across Canada, the United States, Germany and Mexico, we can truly say that the airing of Last Tequila Standing will be a global event of epic proportions!”

 ***

Watch for new episodes of Last Tequila Standing premiering every day–for 45 days–beginning on National Tequila Day, July 24, 2015 at 11AM CDT.

 

[*Editor’s note: As a courtesy and at the request of Clayton J. Czczech, Tequila Aficionado has attempted to remove all videos and photographs in which he was featured without degrading the balance of the Last Tequila Standing content provided to us.] 

Craft Tequila: WTF Does THAT Mean? Part 1

What does that mean for tequilas?
What does that mean for tequilas?

An interesting question crossed my desk concerning the term craft as it relates to tequila.

This person asked…

“The one thing I am finding is the definition of ‘craft’ is all over the place. What does craft mean to you?  Do you think it is based on the method, quantity, who makes it or maybe all of these factors?”

This reader went on to ask if I considered a particular big name brand as a craft tequila, and if not, would I consider a certain higher priced line from this same transnational corporation that owns the brand as a craft tequila.

Further, he confessed that two other well-known brands could be considered “craft” tequilas even though one of them had reported sales of over 50,000 cases in 2013.

 Craft by Definition

According to Merriam-Webster’s online dictionary, my favorite definition is–

“…an activity that involves making something in a skillful way by using your hands.”

The word handcraft is defined as…

“…to make (something) by using your hands.”

There are even deeper meanings to craft as it relates to the beer, wine and spirits industries, but before I get to them, let me remind you of some tequila facts and a huge marketing myth.

Fact #1:  Tequila has its own geographic indication (GI).  The blue weber agave from which it is made can only be grown, and tequila can only be produced, in specific states and regions in Mexico.

Fact #2:  According to the Distilled Spirits Council of the United States (DISCUS), despite 13 million 9 liter cases of tequila sold in 2013, it is still–and always will remain–virtually last in sales volume behind whisk(e)y, gin, vodka and rum due to Fact #1.

This brings me to the…

Tequila Marketing Myth–Borrowing Benefits

So, how does a PR or marketing firm with no real knowledge of what good or bad tequila is, convey the message that its client, usually a high powered, non-Mexican owned tequila brand (and all that that implies), is just as cool as the other kids who may or may not be as well funded?

Tequila disguised as...?
Tequila disguised as…?

Simple–

You “borrow” benefits from the guy ahead of you.  You compare your tequila brand’s features and benefits to the leader in the field, thus making your client “worthy by association.”

From the moment that Herradura rested tequila in used Jack Daniels barrels to attract the American whiskey drinker decades ago, marketers have tried to disguise tequila (and mezcal, now, to some extent) as something else.

And because of Facts #1 and #2 above, tequila marketers have for years misled the public by borrowing benefits from wines, beers and all other spirits in a seeming effort to gain tequila’s acceptance into the mainstream drinking public, and to increase sales.

Craft by Design

Here’s what it means to produce a craft product in each of the following arenas.

The Brewers’ Association defines craft as small (“6 million barrels of beer or less per year”), independent (“less than 25 percent of the craft brewery is owned or controlled by a beverage alcohol industry member that is not itself a craft brewer”), and traditional (“a brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation”).

The American Craft Distillers Association’s (ACDA) definition of craft gets trickier–

“…those whose annual production of distilled spirits from all sources does not exceed 750,000 proof gallons removed from bond (the amount on which excise taxes are paid.)”

According to the Alcohol and Tobacco Tax and Trade Bureau (TTB), a proof gallon needs an entire conversion table to figure out.  We’ll let you do the math, here.

The American Distilling Institute’s (ADI) guidelines are similar but allows certified craft spirits a “maximum annual sales of 52,000 cases where the product is PHYSICALLY distilled and bottled on-site” and “maximum annual sales are less than 100,000 proof gallons.”

Where wine is concerned, the Department of Revenue defines a “small winery” as any winery that produces less than 25,000 gallons of wine in a calendar year.  A “farm winery,” however, can produce up to 50,000 gallons of wine annually.

Some have even arbitrarily issued their own definition of small winery as one producing as little as 10,000 gallons per year, and a nano winery as generating only 500 gallons per year.

A simple Google search shows that each state has its own slightly different definition of what a craft wine or spirit is, and several states with popular wine growing regions like California, are constantly updating their definition to accommodate growing wineries.

The same growing concerns in the craft beer industry have prompted the Brewer’s Association to update their ground rules to allow for larger craft producers.

The Revenge of Brewzilla

According to Impact Databank, a large chunk of the beer industry has surrendered significant market share (some 6.7 million barrels, or 93 million 2.25-gallon cases since 2009!) to the spirits industry.  The only bright spot for the entire category is the resurgence of locally brewed craft or specialty beers increasing in volume by 14% to 20.2 million barrels.

These stats have not been lost on spirits marketers who follow trends in similar markets to practice borrowing benefits.  The big brands like Miller-Coors, Anheuser Busch-Inbev (Budweiser) and others also have jumped onto the craft bandwagon by either investing in small breweries or by inferring in their marketing that they still make their beer by hand.

It's not a craft beer.  Just well-crafted.
It’s not a craft beer. Just well-crafted.

As Ashley Routson, a craft beer advocate famously known as The Beer Wench, and whose upcoming book “The Beer Wench’s Guide to Beer” will be an unpretentious, comprehensive approach to beer, puts it…

“In my opinion, the fight over the word craft should be one of semantics, but instead, its become a battle of the egos.”

Routson goes on to say, “The word ‘craft’ is not a synonym for the word ‘good,’ ‘great’ or ‘better.’  Many non-craft breweries and large tequila producers make world class beer and tequila–there is no argument there.  You don’t need to use the word craft to define your beverage as being good.”

Author, Ashley Routson, The Beer Wench.
Author, Ashley Routson, The Beer Wench.

Beer journalist, Mike Cortez, whose pending book will be a part of the Beer Lovers series of books (Beer Lover’s Texas), is also the co-founder of The Texas Margarita Festival, and feels that craft tequila should be held to the same strict standards as craft beer.

 “We need to separate the garbage from the good stuff.  [Like craft] beer that is only made with the basics, grain, water, hops and yeast, the brewers do not use additives or adjuncts to flavor the beer.”

Cortez concludes, “[Tequila] is a product that takes time, care and only the purest agave extraction.  The distillers depend on the time to harvest the agave, baking the pinas and perfectly extracting the juices.  Once it is distilled it is a product that is pure and only flavored by the barrel with no extra additives.”

Tequila Industry consultant, Chris Zarus, innovator of TequilaRack, the world’s first take home tequila tasting kit that deliberately includes samples of some of the finest small batch, micro-distilled reposado tequilas sourced from family run distilleries, takes the craft argument to a higher level.

“The word craft has unfortunately been abducted by the marketing department and now misleads the masses.  We go to classes that advise us on how to make our brands ‘craftier’ with specialty releases with funny names [and] all owned by multinational conglomerates that work relentlessly to reduce costs via cheaper ingredients and mechanization.”

Zarus believes that there are two industry definitions of craft which differ from what the consumer understands.  They involve a specific recipe and a specific process.

Specific Recipe

Chicken breast after having been used in clay still to make mezcal de pechuga.
Chicken breast after having been used in clay still to make mezcal de pechuga.

In this craft version, the product is consistent and costs are contained.

“The Jim Koch’s [founder of Samuel Adams beer] view that his recipe makes his beer craft regardless of the fact that MillerCoors brews it for the masses,” explains Zarus.  “In [Koch’s] opinion, its like a chef going to your house to cook his special recipe.”

“If you think about it in broad terms,” reasons Zarus, “all consumer products have a specific recipe.  The difference here may be that the recipe is full flavored and is preferred by fewer due to its heartier taste.”

Specific Process

In this definition, the process is the craft.

Tequila Fortaleza, produced by famed fifth generation distiller, Guillermo Sauza, Zarus illustrates, “[Is] very

Las perlas del mezcal.
Las perlas del mezcal.

specific, old world, but not very mechanized.  In this way the outcome varies by batch and the state of the local ingredients.  The craft is the process.”

The downside, insists Zarus is that, “…the product varies by batch, like some wines.  There is a lack of product consistency.  Some batches have more acclaim than others and the maker is not getting to charge the full price of the best batches.”

This last seeming liability has been turned into a profitable tequila marketing plan by some boutique brands like Ocho and Charbay who source their agave from single estates thus promoting the brand’s terroir and creating buzz for individual vintages.

The Meaning and the Art Form

Marketers rethink the word "craft."
Marketers rethink the word “craft.”

The two essential elements that Routson, Cortez and Zarus all agree upon are, first, that the craft process is the art form, whether in beer, wine or spirits.

The other factor that our panel of professionals agrees on is the battle of maintaining the true definition of the word craft.

We’ll explore these issues and how you can define, select and measure a craft tequila in Part 2 tomorrow.

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TequilaRack is in Stores!

TequilaRack products are now available for purchase in select stores throughout Southern California.  The locations are posted on our website: http://www.tequilarack.com/store-locator.php

tequilarack

 

Originally posted June 11, 2008 by TequilaRack.

Please visit TequilaRack, a member of the Tequila Aficionado Flight of Sites.

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