Patrón Expands At The High End, Nears 3 Million Cases In The U.S.
July 13, 2023Amid a wave of new competition at the upscale tier of the U.S. Tequila market, luxury leader Patrón continues to churn forward, having added 1 million cases to its total over the past five years on average annual growth of 9%. Last year, the Bacardi-owned brand increased 8% to 2.93 million cases, ranking second to Jose Cuervo in the Tequila market overall.
Recent months have seen Patrón expand its offering at the higher end of its range with several new releases. “Prestige Tequilas are growing at a much faster rate than any other segment of the Tequila category and prestige spirits in general, including Scotch, Cognac, and American whiskey,” notes D-J Hageman, Patrón’s vice president of marketing for North America.
In April the brand unveiled a new blanco Tequila, El Cielo, distilled four times, which the company says brings out additional sweetness and makes for a smoother drinking Tequila. El Cielo retails at $129 a bottle. A month earlier, Patrón introduced limited-edition Ahumado expressions, smoky Tequilas aimed at agave spirits consumers, which are made from agave piñas roasted in small batches with mesquite charcoal for seven days in underground stone pits. Patrón Ahumado debuted in Silver (41% abv) and Reposado (40% abv) offerings retailing at $70 and $80 respectively.
The El Cielo and Ahumado launches follow Patrón’s move late last year to release El Alto, a prestige Tequila that retails at $179 a bottle. El Alto is primarily composed of Extra Añejo, blended with Añejo and Reposado Tequilas, and spent four years in development under master distiller David Rodriguez. Its aging includes 11 different types of barrels, mostly hybrid barrels of American oak body and French oak heads. The upscale entry is focused mainly on the on-premise, initially focused on key cities like New York, Miami, Las Vegas, and Los Angeles.
Hageman continues to see ample upside for Tequila as consumers’ knowledge of the category grows. “This increased momentum can be attributed to a couple different factors,” he says. “The first is that individuals better understand the versatility of the spirit. They know it’s the perfect complement to a Margarita but they’re starting to explore it in other classic cocktails like the Paloma, Negroni, and more. The second factor driving momentum is a deeper interest in the spirit itself. With an assortment of Tequilas on the market, consumers are taking a closer look at the ingredients and production process that go into the Tequila they’re drinking.”
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