How to Infuse Your Tequila Con Ganas

The Bing Crosby Effect

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

Influencer Marketing is a hot social media buzz phrase that can be directly attributed to Bing Crosby.

From the moment the famed crooner, and fellow entertainer and business partner, Phil Harris, imported Herradura, the first 100% agave tequila into the US, celebrity endorsements of alcoholic beverages have influenced American’s buying habits–

And, become an all too common occurrence.

This article traces the history of influencer marketing, from the early days of cinema to a new kind of social media personality, the influencer.

I Wanna be Like Mike

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

Continuing that tradition, celebs like Diddy (DeLeon), George Clooney (Casamigos), Sammy Hagar (Cabo Wabo, and now, Mezquila), and Justin Timberlake (Sauza 901) are just a few of the A-listers peddling agave spirits.

It can be argued that desire for a megastar endorsed item is fueled by our emotional attachment to the star himself.

Hence, the more we care about a renowned personality, the more we “want to be like Mike.”

Celebrity Covetousness

Noel Shu is Chief Luxury Officer and Head Sommelier at Prodiguer Brands, Ltd.  The “Prince of Luxury,” and the man responsible for the most expensive champagne in the world, (Goût de Diamants) explains here why celebrity affiliation works for luxury items.

“No matter what, the rest of the world is keeping tabs on the rich and famous.  In order to be more like them, many go out of their way to get what celebrities have,” asserts Shu.

“Beneath the pretense of glam, money and prestige, a purchase boils down to one thing: familiarity.  It is mental association at work.”

Shu determines, “When a person is constantly reminded that their favorite actor is wearing or using a product, they begin gravitating towards the item themselves.”

The danger in promoting celebrity covetousness in agave spirits brand marketing is that it’s shallow, superficial, and unmemorable.

The emotional bond between your label and your customer, like a sample from a tequila girl in a black mini-skirt, is fleeting, at best.

Intimacy Can be Measured

On the flip side, a very enlightening website reveals a brand’s intimacy quotient.How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

MBLM states that “brand intimacy is a new paradigm that leverages and strengthens the emotional bonds between a person and a brand.”

Before I get to how this new level of marketing relates to agave spirits branding, let me point out a couple of Tequila Market growth facts, courtesy of the Distilled Spirits Council of the United States (DISCUS).

Who Cares About Luxury?

According to DISCUS, the fastest growth in 2016 has been in High End and Super Premium brands.

Virtually a non-existent segment before 2002, volumes of Super Premium tequilas have zoomed 706% to 2.9 million cases.

Intimacy by the Numbers

Taking a look at the Beverages category as a whole on the MBLM site, we discover that its intimacy quotient falls almost 4 points below the cross industry average.

Most notably, though, the Luxury division practically brings up the rear, a full 13 points below the industry median!

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

The numbers for Mexico are even more eye-opening (Abreojos?) with both Jose Cuervo and Herradura (Brown-Forman) at the bottom of the Top 10 Mexican Beverage labels of 2017.

Of the last two tequila marks, only Jose Cuervo is still Mexican owned.

Power to the People

“Brands are in the hands of consumers today,” says MBLM.

A true statement since, chances are, you’re reading this on your preferred handheld device.

MBLM goes on to preach,”…people trust one another more than they trust a corporation.”

We’ve heard it said that word-of-mouth—especially in social media–is everything.  (Just ask United Airlines!)

MBLM continues, “…brands are proliferating, saturating our attention, increasing confusion, and often cannibalizing each other.”

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

That’s certainly an honest view of the spirits industry.

A simple walk through your neighborhood liquor store’s tequila aisle will more than convince any skeptic of that assessment.

Given the above information on this new form of “emotional marketing,” it raises the question—

What’s the point of describing your agave spirit as a “luxury” or “lifestyle” brand?

Fearless Prediction

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50UWith the trend toward attracting Millennials, and their demand for quality, transparency and affordability in the wines and spirits they seek, the growth of the High End and Super Premium segments seem destined to falter.

Celebrity worship and their endorsement of products, however, will continue to be a part of the daily fabric of every social media platform.

As Shu points out in the above article, “No matter how much fanfare or glitz a product gets from being in the limelight, it’s the opinion of experts and influencers on the product itself that keeps it there.”

Luxury items are only attractive when in use by someone we care about or admire, famous or not.

Agave Attachment

How can start up agave spirits entrepreneurs create lasting emotional bonds between their products and their customers?

By telling their brand stories clearly, consistently, and emotionally in a creative and engaging manner across all mediums.

In addition, instead of trying to interest megastars to front your tequila or mezcal, decide to become your own best Agave Ambassador.

Bo Knows

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

The new breed of agave spirits brand owners must not be afraid to stand in front of their own juice to preach their message to the masses.

The Founding Fathers of the Tequila Industry knew the value of forging personal relationships with not just their business associates, but with everyone.

In the tradition of old skool tequileros, luminaries like Guillermo Erickson Sauza, Carlos Camarena, German Gonzalez, David Suro, Sophie Decobecq, Ken Austin, Dr. Adolfo Murillo, Tomas Estes and many others, have not only produced some of the most beloved tequilas, but have fearlessly chosen to be their own qualified spokespersons.

There’s No Crying in Tequila!

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

Agave spirits inherently embody the passion and history of Mexico.  If luxury items are cold and unfeeling, then, agave spirits are the complete opposite.

An agave spirit without a representative, however, is like a band without a front man; like a basketball team without a point guard; like a country without a leader.

No amount of marketing spin can improve a label’s lifeless approval rating, or a vote of no-confidence from customers.

Tequila:  Con Ganas!

“Advancements in neuroscience reveal that virtually all decision making is emotional,” declares MBLM.  “Behavioral science demonstrates that the way we feel about a brand is the single best predictor of purchase.”

MBLM concludes, “up to 90% of the decisions we make are based on emotion.”

How to Infuse Your Tequila Con Ganas http://wp.me/p3u1xi-50U

So, if you decide to be the ultimate emotional mouthpiece for your agave spirit, the bottom line is…

Echale ganas!

 

The Agave Shortage of 2017 Is Worse Than We Thought

We tried to pretend it didn’t already exist.

Articles on an impending agave shortage had been showing up since late 2015, but we thought safety precautions were in place.  The Consejo Regulador del Tequila (CRT) had it all handled.

Then, this happened…

The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZ

Snow In Arandas

On March 10, 2016, Arandas, Jalisco, Mexico, considered part of the all-important Agave Golden Triangle of Tequila (Atotonilco, Tepatitlán, Arandas and Jesús María), woke up to this–

The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZ

An anomaly that has occurred only twice in 100 years.

Beautiful, yes.

We couldn’t look away.

Then, fear stuck.

Would this weather phenomenon increase the odds of a real agave shortage?

Initial reports like this one from revered agavero and tequilero, Felipe Camarena Curiel (Pasote, ArteNOM 1579) on his Facebook page, made us breathe a sigh of relief.

“The conditions of 1997, [the last major agave shortage that shook the Tequila Industry] and the most recent one, were very different.

“In 1997, the low temperatures affected the entire state of Jalisco, reaching -17 C (1.4 F) in Los Altos for a considerable amount of time, freezing the shallow roots of 1-to-3 year old agave and provoking the anticipated maturing [flowering] of the surviving agave.

“The current [snowfall] affected some municipalities in Los Altos de Jalisco, but not the entire state.  The temperatures were not so low and they rapidly returned to normal.

“Of course, in very concentrated areas, there will be total losses.

“We’ll know the magnitude of the damage in the next few days, but in my personal opinion, in the long run, it [the loss; damage] won’t be as grave as that of 1997.”

The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZ

[“Las condiciones de 1997 y las recientes fueron muy diferentes.

“En 1997 la temperatura baja afectó a todo el Estado de Jalisco, llegando en los Altos a -17°C por un tiempo considerable, congelando las raices poco profundas de los agaves de 1 a 3 años y provocando madurez anticipada de agave que sobrevivió.

“La actual afectó a algunos municipios de los Altos de Jalisco, no a todo el Estado.  Las temperaturas no fueron tan bajas y se recuperaron rápidamente.

“Por supuesto en áreas muy focalizadas habrá pérdidas totales.

“La magnitud del daño lo sabremos en los próximos dias pero mi opinión personal es que el daño no será ni lejos tan grave como en 1997.”]

Not everyone in the Camarena family was so cautiously optimistic.

In this blog post from the UK, Carlos Camarena, Felipe’s brother and master distiller of Tapatío tequila, warned a roomful of British bartenders, “…buy up tequila now as in 3 to 5 years there will be a worldwide tequila shortage.”

Blame Global Warming

In a thought provoking post by Clayton Szczech via his website, he firmly attributes the weather aberration to global warming.The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZ

With accelerated climate change comes the uncertainty of once predictable annual weather patterns reported Alquimia Tequila’s owner and organic agavero, Dr. Adolfo Murillo, via its Facebook page.

“…we have been talking about [global warming] for some time now.  This is man’s effect on our Mother Earth.  Will our agaves survive?”

That Didn’t Take Long

By April 2016, articles like the one referenced above were reissued to drive home the possibility of an agave shortage, whether real or rigged.

By late June to early July 2016, confirmed reports reached this office of transnational corporations locking in major contracts with medium sized maquiladoras (distilleries that produce tequila for various other brands) to provide them with enormous quantities of tequila to be bottled under their labels.

By mid-August, confirmed reports reached us verifying that other distilleries were already hiking their prices to their clients in anticipation of, or in answer to, an increase in agave prices.

By late October 2016, other well known brands were feeling the squeeze of a spike in agave prices.

What We Know

Reliable sources tell us that estimates of agave losses are ranging in the millions of plants.

The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZWhile initial reports stated the snowfall reached only 1-3 centimeters [.093 to 1.96 inches], there are now unsubstantiated claims of up to 8 inches of snow had actually fallen in many areas of the Los Altos region.

Unsubstantiated reports reached this office in mid-July 2016 of small agave farmers selling off up to 2 year old agaves before they completely rotted in the fields.

There are also unconfirmed reports of agricultural engineers recommending a scorched earth solution to these small farmers.

Hectares of agave fields are to be plowed under and burned due the danger of crops being infected by the dreaded snout-nosed weevil that prefer to lay their eggs inside weakened plants.

These same small farmers are reluctant to take such a heavy financial hit and would rather sell off what they can rather than destroy their rapidly wilting crops.

Due to the agave glut 7-8 years ago, many other growers stopped planting agave.  Now, because of the unexpected freeze, brokers (coyotes) are scrambling to meet demand.

At this writing, master agave growers are said to be demanding $3.00 per pound for their piñas–and getting it!

Don’t Hate the Game–Hate the Player

Who will survive?

As per usual, any pedigreed distillery with their own agave estates will ensure The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZthat their flagship brands have plenty of plants and juice on hand.

Those maquiladoras that grow agave should also be able to ride out the storm.

Of course, the Big Boys, those transnational corporations with deep pockets, will also pull through, and even thrive.  As we mentioned above, they’ve been busy securing long term contracts since late spring and early summer 2016.

Those brands that are considered handcrafted, small batch, and micro-distilled tequilas should also prevail since the vast majority only produce enough for their own labels.

Virtually any master agave grower who tended his fields properly will prosper The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZduring this looming crisis.

Who won’t?

Those short-term players with little or no experience who were only in it to make a quick buck.

But, this is a good thing, according to Patrón tequila’s Chief Marketing Officer, Lee Applbaum in this article.

Basically, Applebaum asserts, the shakeout of short-term growers will ensure that the market maintains plenty of quality juice while preventing the dilution of the ultra-premium category that Patrón covets so deeply.

Ante Up

The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZ

So, what will drive tequila prices up?

Freezing snow?

The weevil?

Amateur agave growers?

A blue agave shortage?

All of the above.  The simple economics of supply and demand.

But, there’s a new scourge in Tequila Town, and this one is set to be a real thorn in the sides of the Big Boys.

They’re called…

Los Mieleros

Sources report that representatives of large pharmaceutical companies have courted well-respected agaveros for their brix-rich piñas to be used for inulin production, a projected $2.4 billion industry by 2024.

The Agave Shortage of 2017 Is Worse Than We Thoughthttp://wp.me/p3u1xi-4DZ

These same sources confirm that Los Mieleros have consistently and extravagantly outbid tequileros for their agave in just the past few years.

The option for large tequila producers to raid Oaxacan mezcaleros for their espadin like they did back in the mid-1980s, and as Sarah Bowen documented on page 46 of her book, Divided Spirits:  Tequila, Mezcal and the Politics of Production, is gone.  The current burgeoning Mezcal Industry will see to that.

In the meantime, get ready to ante up.

The 2017 Agave Shortage is much worse than we thought.