by Jim Dudlicek / NGA Director, Communications and External Affairs
The demand for private-label products is increasing, along with a desire among consumers for products with authenticity. Independent grocers can unite these interests and boost their profits with own-branded spirits.
The National Grocers Association hosted a recent webinar that presented a guidebook to the world of private-label spirits, with an introduction to tequila and how to increase profits with your own brand; a look at the competitive advantages in the category; and the steps you can take to launch a brand that offers consumers a unique and authentic product.
Speakers included Steven Vourvoulias, director of San Antonio-based Texas Spirits LLC, and José Luis León, export manager for Mexico’s Corporativo Destileria Santa Lucia.
Here are some key takeaways from the discussion:
Tequila is growing. Sales are robust for the agave-based spirit, growing across all quality and aging levels in 2020, from 16 percent for mixto to 50 percent for extra anejo, indicating a demand for premium products. Eighty percent of all exported tequila goes to the United States.
Consumers want authenticity. Tequila has a rich history that can be part of the brand story for a private line of spirits. Destileria Santa Lucia is a family-owned business in operation since 1940, currently run by the family’s fourth generation. The company is responsible for a fifth of the world’s tequila production.
Private label means higher profits. By offering a private label line of spirits, independent retailers can offer their customers better prices while enjoying higher margins. The process also allows retailers a higher level of quality control over the product, as they work closely with the manufacturer on everything from blending to labeling while creating a custom brand.
Working with experts. In launching a private spirits brand, independent retailers can establish a long-term relationship with a trusted supplier that makes priorities of planning, flexibility and communication.
