Blog: Olly WehringWhile we were sleeping...

Olly Wehring | 30 August 2006

With apologies to those of you who thought we were off the pace on Monday (28 August) - we were off celebrating/commiserating the last day of the British summer, hence no just-drinks output.

While we were away, however, Brown-Forman took the opportunity to snap up the Tequila assets of Grupo Industrial Herradura.

Not everyone remains convinced by the attention given to Herradura in recent months. Robert van Brugge, an analyst at US investment bank Sanford C. Bernstein, said he was unsure whether the acquisition of Herradura would be a great way to break into the buoyant market for Tequila in the US.

“Cuervo and Sauza dominate the mid-end and Patrón is the premium end - it’s tough for anyone else to break into the category,” he told just-drinks. “High-end brands are gaining share but given the growth rate of Herradura, it’s not a game-changing move in the category.”

However, though the independently-owned Patrón is the dominant premium Tequila in the US, there remains a lot of room for rival brands at the top end of the market. And with the distribution strength of Brown-Forman behind it, be sure that Herradura will be a Tequila to watch in the coming months.


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