High-Flying Tito’s Takes Another Big Step In 2012, Soaring Past 800,000-Case ThresholdJanuary 10, 2013
After a booming 2011 in which Tito’s Handmade Vodka advanced by nearly 60% to 580,000 cases, the growth rate for 2012 initially was projected at 30%-40%. But it now looks like Tito’s has outpaced even that ambitious target.
“It appears that we’ll exceed our most optimistic growth projections,” Peter Angus, executive vice president of sales for Tito’s, told Shanken News Daily in the final days of 2012. Tito’s sold an estimated 850,000 cases for the year, according to Impact Databank—an advance of more than 45%. Angus credits a mix of existing customers and an expanding consumer base for Tito’s ongoing success. He adds that the brand’s distribution has expanded considerably over the past year, particularly in the on-premise.
Tito’s differs from most domestic vodkas both in its relatively high retail price (around $20-$25 a 750-ml.) and the fact the brand has no flavor extensions. “We still have no plans to create flavors,” Angus says. “We’ll stick to doing one thing well.”
Tito’s, owned by founder Tito Beveridge and his Austin-based distiller Fifth Generation Inc., also appears steadfast in its pricing strategy. “Our competitors have tried to take modest price increases,” Angus says. “But they resort to deep discounting when under quarterly pressure to make publicly traded company numbers. We consistently have held to a strategy of taking small price increases to cover rising costs of goods.”
While the impressive results Tito’s has generated over the past few years—including four consecutive Impact “Hot Brand” awards—might seem challenging to sustain, it’s difficult to doubt a brand that’s quadrupled its annual sales since 2007. For his part, Angus is extremely confident about future prospects. “All indications are for our growth trend to continue in 2013,” he says.
Tagged : spirits, vodka