Australians are increasingly turning to tequila, says Bacardi boss

Contrary to what some might believe, tequila can be a sophisticated drink – and Bacardi believes it can sell the misunderstood Mexican spirit to Australians.

Bacardi Australia managing director Luiz Schmidt believes Australians are increasingly interested in tequila.

Drinks giant Bacardi, perhaps best known here for its white rum, is 162 years old but is eyeing growth opportunities in Australia by launching a new range of premium vodka and tequila, and signing its first local sponsorship deal for its flagship vodka brand, Grey Goose.

Far from the cost of living crisis putting it off, Bacardi is setting its sights on capturing the affluent segment of the market that is willing to spend up on quality spirits, so long as they have the credentials to match the price.

And Bacardi Australia and New Zealand boss Luiz Schmidt says the market is ready to turn Australian heads towards the flavour profiles of tequila, as more and more locals visit California and Mexico and discover the spirit can be so much more than the base of a fruity margarita.

“We definitely see prestige brands performing well in this market,” Schmidt tells The Australian, “and we are seeing the adoption of prestige brands for consumers that want to ‘elevate’. We all know this trend has been happening over at least the last 10 years – of drinking less but a lot better quality.”

Pouncing on this trend, Bacardi is set to launch in Australia its Grey Goose Altius brand, which boasts spring water from the French Alps and wheat grown in France and will sell for more than $200 a bottle. Long the favourite of Hollywood and celebrities, Grey Goose will get a fresh kick in Australia with a sports sponsorship that Mr Schmidt is on the cusp of signing but remains confidential for now.

New super-premium Patron tequila El Alto.

Matching the super premium Grey Goose Altius brand will be a prestige version of Patron, Bacardi’s top tequila brand and the world’s biggest selling super premium tequila. Patron El Alto has its own boasts about provenance, with it made from 100 per cent Weber Blue Agave grown in the highest parts of Jalisco, Mexico. That can also sell for more than $200 a bottle.

Bacardi, the family-owned drinks business that has its roots in Cuba, owns the namesake rum brands as well as Grey Goose vodka, 42 Below vodka, Dewar’s whisky, Bombay Sapphire gin, award-winning vermouth Martini and Patron ­tequila.

While its flagship tequila brand Patron is a global leader, in Australia it has been much harder to get Australians to think of the Mexican spirit as more than just a cheap booze to pour into a jug of ice and juice, or slammed down in shots in a nightclub.

Tequila is growing in popularity in Australia.

But Mr Schmidt sees views and tastes changing in Australia, especially when it comes to considering more premium tequila with better ingredients and flavour.

“We are very excited about the potential of tequila in Australia. I think this interaction with Australians as the first port of entry into the US, California, which has strong Mexican influences and … Australians do like to pop in and visit Cabo or Cancun in Mexico.

“I think that helps to seed the tequila category in Australia and I think for Australians as well tequila is a category of spirits that connect so well with our summer. We love our summer, the outdoors and going to your favourite bars.

“So we definitely see a long runway for tequila growth in ­Australia.

“I think Australians are definitely very curious about tequila,” Mr Schmidt said.

Mr Schmidt is seeing Australians first enter the tequila category through brands such as his Silver Patron, which is not aged, but they might soon graduate to aged Patron tequila which has some commonality with whisky in highlighting the benefits of ageing.

“We believe that it has a taste profile that is closer to probably whisky and Australians are big fans of whisky. And we have seen as well that consumers, as soon as they try an aged tequila, they fall in love with that because of the rich taste profile of that. So I think the challenge of the industry is there is a lot of growth, and we’ll see growth, but I think the challenge of the industry, the challenge that Bacardi has, is how we educate consumers beyond the margarita, right, and beyond shots, because the category, is much bigger and greater than that.”