Will aguardiente follow in the footsteps of Mexico’s mezcal and Brazil’s cachaça to become the next traditional Latin American spirit to blossom into a premium-plus brand at trendy American cocktail bars, after years of popularity as a rustic drink often consumed in shots?
FIRST PUBLISHED BY: The Spirits Business | By Roger Morris | October 4, 2024.
‘Aguardiente’ is a widely used catch-all term representing a variety of traditional distillates, including rustic rums and brandies that are made in many Hispanic countries in the Western Hemisphere, as well as historically in the Iberian countries of Europe. Rough in character, these aguardientes have at times been well-deserving of their name translated into English – ‘firewater’.
But now such Colombian-based brands as Bacan and Cumbé have tamed the firewater as smooth distillates made from sugarcane, flavoured with anise and sold in fancy packages through sophisticated marketing campaigns, aimed at reaching both traditional Hispanic populations in urban areas and new drinkers hooked on exploring inventive and flavourful cocktails.
Worldwide sales of aguardiente stood at 21.5 million nine-litre cases in 2023, up by 15% from 2020. US 2023 sales, while still small at 91,250 cases, experienced a 9% increase over the same period. A larger sales boost is expected to come soon with the introduction of new, drier Colombian entries, where it is known simply as ‘guaro’, and from producers in Mexico making small-batch craft distillates.
Monique Huston, who manages the spirits portfolio for the large American importer, Winebow, says: “Sales are being driven by the flavours of aguardiente, which make it so popular with bartenders in inventing new cocktails, especially in the larger American cities and those with large Hispanic populations.”
In addition to Colombia, Mexico produces sugarcane distillates, especially in the state of Michoacán in the mountains west of Mexico City, where it is known as ‘charanda’. “There are single family, small-scale producers, who as farmers really know their varieties of sugarcane and produce different bottles from as many as six different varieties of sugarcane,” Huston says. Her Paranubes brand identifies both as an aguardiente and a rum. “Naturally, they expect higher prices for this.” While many aguardientes are simply referred to as distillates to distinguish them from the aged rum categories, charandas can be also be barrel-aged for added complexity.
Emerging stars
One of the emerging stars from Colombia is the super-premium Bacan brand, which produces two strengths – 24% and 48% ABV – each selling for a hefty US$50 per 700ml. In additiona to being smooth, well-structured and flavourful, Bacan ticks off all the trendy consumer boxes – sugar-free, low-calorie, vegan and even Kosher-certified. Bacan and competing brands from Colombia are not sweet, which producers believe will distinguish them from the anise-flavoured sprits of Europe and will eventually open up that market as well.
“There was a need for a premium guaro in the American market, and we worked years, especially during the Covid pandemic, to develop it,” says Miami-based Ricardo March, a wine trade veteran from Italy and Spain and his Colombian wife, entrepreneur and media personality Diana March. Launched earlier this year after building a reputation by winning several spirits competitions in the US, Bacan is already available in New York, New Jersey and Florida. Eventually, the company plans to bring the brand to Europe.
The increasingly popular Cumbé, which has been on the market longer than Bacan, also celebrates its Colombian heritage in its promotional materials, proclaiming, “After a masterful distillation in Colombia’s highlands, our aguardiente master imbues each bottle with its unique soul in Colombian oak barrels. This soul is identifiable in the woody note and exclusive bright finish of Cumbé.”
“I truly think that aguardiente will be a staple at bars,” says Gabriel Urrutia, author of Miami Cocktails and faculty member of the Chaplin School of Hospitality & Tourism Management at Florida International University. “We are seeing complexity coming out of brands like Bacan that are truly capturing the spirit of the aguardiente category. With aromas and flavours like sassafras root and mint it truly shines as a base in cocktails or even as a modifier. I love it in a Spritz and even an Espresso Martini riff.”
Is price a barrier to the on-trade?
Huston says premium and super-premium pricing for sugarcane-based distillates isn’t necessarily a barrier in the cocktail arena. “We have sales people who are often former bartenders,” she says, “and they will get into a discussion with the beverage manager about these small producers who make a few bottles from a particular field or a particular variety of cane. You talk about it being additive free. By that time, you’ve bought the buyer along on a journey, and they expect for the brand to be expensive.”
Huston estimates her sales are about 50-50 on-premise and off-premise, while recognising those off-premise or liquor store sales will take time to reach smaller, less-urban markets. “I have one brand of Colombian aguardiente in stock, and I think the same three bottles have been on my shelf for years,” sales Frank Pagliaro, owner and president of FranksWine in Delaware. “You’ll probably hear quite a different report if you were to reach out to North Jersey and New York retailers where there’s a Colombian clientele.”
March says he believes he is not only marketing a spirit, he is selling a culture. “My wife and business partner Diana is Colombian, and guaro is the quintessential Colombian drink,” he says. “There is also a link between our cultures in Bacan’s ingredients – South American sugarcane and Spanish anise.”
Urrutia believes: “Guaro is such an interesting spirit that hasn’t gotten its fair share of the spotlight, in part because a lot of the category is filled with sugar and flavouring. That is starting to change with brands who are championing fresh ingredients and no sugar. It really allows you to play with the guaro in cocktails.”
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