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Patron's Alan on Tequila Becoming an Investment Spirit (Audio) · Bloomberg Intelligence

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  Speaker 1: and that's a Bloomberg Business Flash. You're listening to Taking
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  Speaker 1: Stock with Kathleen Hayes and Pim Fox on Bloomberg Radio alright,
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  Speaker 1: get ready to grab your lime and your assault, your tequila,
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  Speaker 1: and perhaps even your Amazon Alexa Echo. Speaker. Here to
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  Speaker 1: tell us more about this confluence of technology and spirits
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  Speaker 1: is David Allen. He is a manager of trade education
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  Speaker 1: and Mixology for Patron Spirits, joining us from Austin, Texas. David, welcome,
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  Speaker 1: tell us about this combination of Patron and Amazon's Alexa.
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  Speaker 1: This is the speech, the speech automated Alexa voice service
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  Speaker 1: by It's Echo. I believe that's right. Well, the timing
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  Speaker 1: couldn't be more perfect. We have International Tequila Day right
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  Speaker 1: around the corner, and so as we celebrate brand new
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  Speaker 1: cocktail website that we have launched called Cocktail Lab. It's
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  Speaker 1: at Patron Tequila dot com. Amazon has come out with
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  Speaker 1: Alexa and we've partnered with them and based with our
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  Speaker 1: cocktail Lab. It's sort of as few your preferences, feels
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  Speaker 1: you out, sort of sees what kind of drinker you
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  Speaker 1: are and makes uh recommendations. It's sort of like a
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  Speaker 1: cocktail recommendation engine. And with Alexa you can do that
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  Speaker 1: hands free. Use tell her what you're looking for and
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  Speaker 1: she can give you the recipes so that you're in
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  Speaker 1: the kitchen and don't have your laptop out or want
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  Speaker 1: to get your cookbooks dirty. Alexa will do the talking.
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  Speaker 1: So you can almost treat this Amazon Alexa as a bartender, right,
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  Speaker 1: she's your personal bartender assistant in the kitchen or or
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  Speaker 1: in the office wherever you may be mixing cocktails that day. Now,
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  Speaker 1: this is not the first time, but an it means
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  Speaker 1: that the Patron has used technology in order to highlight
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  Speaker 1: its products. Tell us about the art of Patron Virtual
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  Speaker 1: reality experience. What is that? Well, as far as we know,
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  Speaker 1: we were we were the first Spirits company to work
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  Speaker 1: with the Oculus technology and so you know, we we
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  Speaker 1: literally flew drones through our facilities in Mexico because the
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  Speaker 1: best way to tell the story of the Toron tequila
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  Speaker 1: is by showing people, you know, the field that it
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  Speaker 1: comes from, the and the and the distillery where we
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  Speaker 1: make it. But obviously we can't get everybody down there.
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  Speaker 1: But with that virtual reality technology, we're able to capture
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  Speaker 1: the experience of being at the Hacienda India gave field,
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  Speaker 1: in the distillery, in the bottling line and uh and
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  Speaker 1: and really you know, show that to people in a
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  Speaker 1: portable thing that literally packs into like a little case
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  Speaker 1: that we can take in our suitcases. Now, one thing
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  Speaker 1: you may want to take in your suitcase is a
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  Speaker 1: super high end premium tequila. Tell us about the investment
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  Speaker 1: qualities of high end tequila. Well, you know, we've always
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  Speaker 1: been a pioneer in the category, and if you look
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  Speaker 1: at look at how this category has grown from the
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  Speaker 1: nineties to the present, um, the super premium category is
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  Speaker 1: just has just skyrocket and I think we had a
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  Speaker 1: lot to do. I think there's a strong correlation between
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  Speaker 1: our work and promoting high end tequila and the growth
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  Speaker 1: of that category. Well, tell us about some of the
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  Speaker 1: ones that are collectible. I understand that the Bardos as
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  Speaker 1: well as Grand Piedra. Sure, so the Grand the Grand
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  Speaker 1: Patron line are are sort of our our finest and
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  Speaker 1: rarest Grand Patron Piedra was the first Extra in Diego
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  Speaker 1: that we produced, and it was the first time we
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  Speaker 1: did a four year old extra oneo with just tna
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  Speaker 1: crushed tequila. The Piedra name refers to the stone of
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  Speaker 1: the tejona that crushes the agave. Is a very ancient
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  Speaker 1: method that's largely been phased out of the industry, and
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  Speaker 1: we're still the biggest producer of Tahna tequila, and Piedro
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  Speaker 1: was an opportunity for us to show what that Tejona
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  Speaker 1: tequila tastes like, um, when it spends up to four
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  Speaker 1: years and would what kind of rice point are we
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  Speaker 1: talking about here? You know, I live in Texas. It's
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  Speaker 1: about three retail in Texas. I'm not sure what it
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  Speaker 1: is in New York there. Bordeos was is an even
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  Speaker 1: kind of more innovative process, something that our masters distiller
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  Speaker 1: Francisco Alcarez came up with where he took on Jeho
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  Speaker 1: Patron read distilled it and then ages ages it ten
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  Speaker 1: months in French oak and finishes it for four months
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  Speaker 1: in Bordeaux barrels and it's bottled on a really beautiful
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  Speaker 1: decanter um And that one can be, you know, in
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  Speaker 1: the five dollar range depending on where you are. What
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  Speaker 1: happens if you'd like your Patron tequila in some kind
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  Speaker 1: of Lalak crystal, what does that end up doing? You
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  Speaker 1: have to have to have to dig very deep. Um Uh.
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  Speaker 1: There were only five hundred of those made in the
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  Speaker 1: first series um and it was gorgeous decanter that that
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  Speaker 1: the Lalak Studio modeled after our original patron bottle UM
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  Speaker 1: with a very rare tequila and if they made five
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  Speaker 1: bottles and depending on where you are and is in
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  Speaker 1: the sixty range, um, you know, so maybe not the
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  Speaker 1: best to make sure, Margaart read it with no undoubtedly, uh, David.
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  Speaker 1: With the popularity of tequila, and just to note that
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  Speaker 1: the US is the largest market. It's got about global
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  Speaker 1: tequila sales in the United States more than I guess
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  Speaker 1: more than fourteen and a half million cases. Um it
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  Speaker 1: can you tell us? Uh? That is the agave plant
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  Speaker 1: in danger of being overused? I mean, what happens when
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  Speaker 1: it just becomes so popular that they're no more a
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  Speaker 1: Govey plans to make tequila. Well, that's something obviously that's
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  Speaker 1: a great concern to all of us in the industry.
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  Speaker 1: Beaker bett is our primary raw material. UM. We work
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  Speaker 1: very closely with the farmers that we produced a gobby
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  Speaker 1: for us. We write long term contracts. Were always paying
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  Speaker 1: above the market rate, and so by paying above the
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  Speaker 1: market rate and guaranteeing a sustainable price to the grower
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  Speaker 1: depending on what the market, you know, it fluctuates all
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  Speaker 1: the time. These growers are always going to give us
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  Speaker 1: the best products because they know that they're going to
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  Speaker 1: get their money back and that they're gonna make a
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  Speaker 1: handsome return on the agave. But sure, there's a lot
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  Speaker 1: of research into the sustainability efforts right now just to
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  Speaker 1: make sure that that that a Gobbs supply does sticker
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  Speaker 1: on for a long time for us. Well, David, I
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  Speaker 1: guess here's the most important question. What's the proper way
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  Speaker 1: to do with tequila shot? Well, the very personal question, um,
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  Speaker 1: you know the way that has become so popularly, you know,
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  Speaker 1: uh aware is the training wheel. We call it a
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  Speaker 1: fault and lin but but we we are of the
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  Speaker 1: belief that that is sort of an old fashioned way
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  Speaker 1: to make inferior tequila taste better. And it's just very
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  Speaker 1: jolting and jarring when you put the fault and lime
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  Speaker 1: in your mouth, and it really appears the flavor of
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  Speaker 1: the sequelo, which I think was was its original purpose.
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  Speaker 1: So I guess he's a purist, that David Allen, manager
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  Speaker 1: of Trade Education and Mixology patron spirits this is Bloomberg
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