Muso Jam

Patrón thinks its biggest selling point is what's not in its tequila

· Business Insider

Patrón's outdoor ad campaign draws attention to the words tequila regulators won't let it use in its marketing.

Patrón is betting that what's missing from its bottles can set it apart, as US spirits sales fall and the premium tequila category becomes increasingly crowded.

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Patrón is rolling out the latest iteration of a provocative campaign that plays on the words it's not allowed to use in its marketing, the company exclusively told CMO Insider.

Last year, Mexico's Tequila Regulatory Council, the CRT, briefly removed Patrón's official NOM compliance mark and halted its border exports after the brand refused to remove its "100% additive free" messaging from its marketing. The CRT bars tequila producers from marketing their products as "additive-free" because Mexican authorities consider the claim misleading for consumers.

Patrón responded with its "Censored Truth" campaign, which bleeped and blacked out the forbidden claim.

Patrón is pushing the point further with a new series of out-of-home ads. Created by the ad agency BBH USA, a series of billboards and murals nod at its regulatory clash. Some billboards are deliberately misspelled — "No atrificial flvaor. No atrificial cloor. No atrificial swetness." — while others omit Patrón's name entirely, relying on the distinctive silhouette of its bottles alongside references to what isn't inside it and an invitation to visit guess-which-tequila.com.

Some of the creatives in Patrón's latest campaign omit the brand name entirely.

Roberto Ramirez Laverde, Patrón global SVP, told me that the brand is betting that ingredient transparency can become its marketing superpower.

"Our mystery ingredient is that we don't have a mystery ingredient," he said.

Ramirez Laverde said tequila drinkers want to know more about a product's ingredients and how it was produced. Patrón cited a March 2026 YouGov survey of 1,002 US adults, in which 61% of consumers polled said manufacturers offer greater transparency about their ingredients and sourcing.

Ramirez Laverde said communicating consistently is part of the brand's winning formula, and why it opted to build on its past transparency campaign, rather than rolling out new messaging. Patrón's internal brand metrics indicated the approach was working, driving up scores such as consumers' willingness to pay more for its products and indicating they were "happy to be seen drinking" Patrón.

"As marketers, I think we usually make a key mistake, which is we get tired of things before the consumer does, and that's because we are used to seeing our products and our campaigns probably 100 times before they are in front of the consumers' eyes," Ramirez Laverde.

Patrón is positioning itself as a musical accompaniment

Patrón was the third-biggest-selling tequila brand by dollar volume in retail stores in 2025, behind market leaders Don Julio and Cuervo, per Nielsen IQ.

Like other brands in the category, Patrón has been forced to adapt to changing drinking habits, as Americans cut back on alcohol and contend with inflation. US spirits sales fell 2.2% by value in 2025, according to the Distilled Spirits Council of the US, while tequila and mezcal sales dropped 4.1%. The super-premium segment was particularly squeezed, with volumes falling 6.1%.

Steph Kiens, growth developer and director at Elmwood Brand Consultancy, which counts Heineken as a client, said Patrón needs to focus on more than an eye-catching transparency campaign to drive consumers to choose its tequila over cheaper alternatives.

"The 'in the know' that the brand should focus on is its understanding of culture and its place in consumers' minds, not simply its logo-esque recognizability," Kiens said.

Patrón partnered with the Grammy Awards this year, with bartenders serving up signature cocktails.

Ramirez Laverde said Patrón acknowledged it needed to evolve its luxury offering. One example was creating miniature versions of its El Alto range, which usually retails for around $165 per 750 ml bottle, for consumers to sample at music festivals.

More broadly, Patrón is trying to position itself as a musical accompaniment. This year, it sponsored the Grammy Awards and created a "Hacienda Patrón" pop-up at the Lollapalooza festival, featuring artist performances, DJ sets, and specialty cocktails.

Kiens said Patrón would also do well to tap into Gen Z's revival of 2010s trends.

"Patrón has a unique opportunity to lean into nostalgia for the era that boosted its fame in the first place," Kiens added.

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· CNBC

TikTok Shop is driving more online sales in the US than Target and other major retailers

· Business Insider

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  • TikTok Shop is grabbing market share from major online retailers in the US.
  • The app captured about 2% of total US online retail spend in July, according to Consumer Edge.
  • TikTok is driving more US online spending than established players like Target, Costco, and Lowe's.

TikTok is battling it out with the big dogs in online shopping, and it's starting to pay off.

In July, US spending on its e-commerce platform, TikTok Shop, was greater than online spending at major retailers like Target, Costco, and The Home Depot, according to US credit and debit card transaction data compiled by the customer-intelligence firm Consumer Edge.

TikTok Shop accounted for about 2% of online US retail spending last month, up from around 1.2% a year ago, per Consumer Edge's analysis.

That jump in market share is "massive," said Michael Gunther, SVP of Research & Market Intelligence at Consumer Edge.

TikTok is serious about taking on big players like Amazon and Walmart, even if its app is centered on short videos and entertainment.

In recent weeks, the company has begun introducing its own Amazon Prime-style membership program with free shipping and other perks. It's also offering managed services to sellers who need help making videos and advertising their products.

The company pulled in over $500 million in US sales during last year's Black Friday Cyber Monday week, and it's been onboarding major brands like Samsung, Disney, and Ralph Lauren in recent months.

Some of TikTok's year-over-year US spend growth in July could stem from the fact that its e-commerce app didn't have to compete with Amazon Prime Day. It did run up against the blockbuster event in July 2025. Gunther said the Prime Day effect doesn't seem to have had an outsize impact on TikTok's growth in market share, though, which has been relatively linear since its launch.

"Given that TikTok Shop was at zero a few years ago, these moves are really, really big," Gunther said. "I don't know if I've seen something like this."

TikTok Shop's share of US online retail spend has grown relatively linearly since launch.

TikTok's US retail spend is still a far cry from Amazon's, which hovers at around 35% in US market share depending on the month. It's also driving less than a third of the online spend of Walmart, which falls at around 7% market share in the US.

That said, TikTok has gradually been creeping up on smaller competitors as its platform has matured.

The company has invested heavily in its e-commerce business since it launched in 2023, building out a full shipping and logistics offering, onboarding hundreds of thousands of sellers, and training creators on how to promote goods in videos in exchange for a commission.

TikTok's growth in US spend last quarter was driven in part by a group of power users, according to Consumer Edge's analysis.

TikTok Shop buyers who made 20 or more purchases in the second quarter of this year drove about 30% of the overall spending on the platform, while representing 5% of the total population of buyers.

Older shoppers are also helping TikTok pick up sales. The fastest-growing age demographic by year-over-year spend in the second quarter was shoppers over the age of 35.

Spend from TikTok Shop customers over the age of 35 is growing faster than from younger users.Read the original article on Business Insider

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