How is Patron performing in Canada?

It’s our fastest growth market in the world. Our fiscal year is calendar year and we were up 102 per cent in Canada, even in these tough economic times.

Which provinces have seen the most growth?

The biggest growth markets in Canada are Ontario, Alberta and British Columbia. I’m happy to tell you, because I don’t think it’s been written anywhere, that we’re in every single province in Canada. Not every single one of our brands is in every single province, but all our brands (including Pyrat Rum and Ultimat Vodka) are in Canada.

What portion of your business comes from licensees?

Our business is split 50-50 on-premise versus off-premise.

That seems like an awfully high number. Why do you think that is?

Well, in the U.S., it’s 70 per cent on-premise. Our brands are definite aspirational brands. When people go out they want to feel good about the brands they’re drinking because it makes a statement about who they are. Our advertising supports that; it’s all about image and luxury status.

What advice would you give licensees on how to best take advantage of this popularity?

Experiment with the mixability of Patron. They can go to our website. We have many different recipes and we actually have bartenders on the website, who can show you how to mix different drinks with the Patron or Patron Citronge liqueur or Patron XO cafe coffee liqueur or Pyrat rum or Ultimat vodka. Also, it’s very important for the on-premise licensee to up-sell the consumer. Not only are you offering your consumer a better-tasting drink but you’re also able to charge  more.

Why do you think super-premium tequila is not showing any signs of slowing growth in the current marketplace?

It’s because the consumer is learning about the versatility of brands like Patron. It’s also new and exciting. And most importantly, even in these tough economic times, we’ve increased our advertising spend. While you’re seeing a lot of multi-national companies cut down, we’ve increased our advertising so we’re having a larger share of voice. And our awareness among consumers has increased dramatically over the last few years so we’re bringing more and more people into the category. That’s why our brand is showing tremendous growth.

What are your plans for the future?

We’re going to continue to come out with different finishes, like the Gran (Patron) Burdeos – that’s aged in Bordeaux casks so you’ll see different finishes in Patron. We’re going to continue to go upscale. And we’re going to spend a lot of time building Ultimat Vodka because it’s the only vodka made from wheat, rye and potato.

You’ve done tequila, rum and vodka. Is there any other spirit you’d like to take a stab at?

We’re always looking in the market to see if there are any brands available that fit our luxury portfolio but right now we want to stay focused on building the brands that we have. Every single brand in our portfolio in 2008 showed growth. So we want to continue supporting those brands.