Patrón Spirits International closed 2017 with healthy volume growth of +16.25% year-on-year across its global travel retail portfolio, which includes its cruise business. [As reported, Bacardi completed its acquisition of Patrón this week; click here for details.]
In Patrón’s overall business worldwide, depletions in 2017 climbed by +5%, representing an unbroken record of growth for the brand since it was founded in 1989.
Speaking to The Moodie Davitt Report recently, Vice President Global Travel Retail John Kilmartin said the spirits company had already achieved +22% volume growth year-to-date in 2018 (to 19 March).
He cited better execution, better merchandising and visibility as the key drivers behind the company’s momentum last year and in 2018. “It also helps that we are by the far the world’s best selling ultra-premium tequila,” he added.
Latin America posted particularly strong volume growth of +25% in 2017. Asia Pacific also showed a significant increase, driven by age statements Patrón Añejo and Patrón Reposado.
“Dubai is back on track and Russia is performing well,” said Kilmartin, adding that Lebanon, Greece, Israel and Argentina are all presenting strong numbers for the super-premium tequila business.
Patrón’s travel retail-exclusive limited-edition gift tin programme – which has included a Mexican Aztec and Mayan art-inspired and Chinese New Year editions – has helped drive sales of Patrón Silver.
“These [editions] now account for 12% of travel retail sales volume in the Silver sku,” said Kilmartin.
“We have a new launch in the pipeline for the TFWA World Exhibition in Cannes following on from the limited edition Patrón Cask Collection Sherry Añejo.” This will be a limited release of circa 2,000 cases.
Patrón is also gaining traction with its barrel-select programme with retailers in key locations. “DFS has taken that on as a global programme, Beirut Duty Free has elected to go with it and so has Le Clos at Dubai International,” Kilmartin added.
Last year, the spirits company expanded its offer with Patrón Reposado in locations where it has carried Patrón Silver and Patrón Añejo. Kilmartin said: “Given how well we have been performing we have been able to reinvigorate the Reposado line and bring that back into play in several locations. This was particularly prevalent in Asia and some European countries.”
In general, the strength of ultra-premium tequila globally has skyrocketed, driven by cocktail culture in the domestic market. Kilmartin noted. “It’s not just a US phenomenon any more, it’s become international trend. Our domestic teams have done a fantastic job in terms of distribution and raising awareness of the brand – an element of that is feeding back into duty free and vice versa.”
