Out of the slammer

Nigel Huddleston discovers that tequila's appeal

lies in its versatility

It may not be the biggest category in the spirits market, but tequila is certainly one of the star performers.

On-trade volumes in 2006 were 5.7% ahead of the previous year, while the value of those sales rose by a little less, at 4.8%.

At just 49,000 cases, it's a fraction of the 3.2 million-plus cases of white spirits sold annually, but Diageo GB marketing director Anita Robinson says: "Tequila's no longer just a drinks shot. Much of the volume is from margheritas and people trying premium brands such as Cuervo Tradicional. Premiumisation across the drinks market includes tequila."

However, tequila was the only sprits category where prices fell in the on-trade last year, even though it was by less than 1%.

James Rackham, chairman of Casco Viejo supplier Emporia, says: "In mainstream pubs, a Tequila Sunrise often appears on the menu and people still slam it, but with initiatives such as Drinkaware, quality is increasingly important. That's happening as much in tequila as in any other drinks category."

Super-premium on the way

While tequila is clearly making inroads on vodka's market at the mainstream end, Rackham is keen to inch into the super-premium spirits market, where brands such as Grey Goose vodka are making all the noise.

He's working on the launch of a super-premium tequila called Maracame, with a bottle price in excess of £50, later in the year.

"Our tequilas are traditionally made and bottled on the estate," he says. "There's an opportunity for such products because people are interested in a product's quality."

Rackham has been building distribution for his products by targeting leading tequila style bars in London, such as Green & Red and Café Pacifico, but he maintains there is an opening in the mainstream pub market for more upmarket tequila offerings.

"We're starting to target places such as Brighton, Manchester, Leeds and Edinburgh," he says. "We do promotions in each city over six months, building awareness, explaining to bar staff what makes these tequilas different and explaining what '100% agave' means.

"We've attracted interest from top-end pub groups such as Pleisure in Brighton, which focuses on quality spirit brands. Its staff have got behind Casco Viejo and it's going brilliantly."

Both Rackham and Robinson say there's growing interest in sipping tequilas as well as long, mixed-drink bases.

Robinson says: "Slamming has always been part of tequila's DNA, but outlets see growth when they exploit its versatility. Many style bars are selling a lot of shots - but they're shots of premium brands like Tradicional to sip and savour rather than to slam.

"A lot of bars want a premium range that looks great on the back bar, and need new ways to serve it along with the margherita. This is happening fast in the style bars, but everyone should consider it - if it's doing well there, people will soon want it in pubs as well."

key trends in tequila

l Consumers are increasingly seeing tequila as more than just a shot drink, and trying it in cocktails and with mixers

l On-trade volumes were up 5.7% in 2006 l The value of those sales rose by 4.8%.