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Feature
A drink with… Dan Butkus, Santo Spirits
Named CEO of Santo Spirits in 2022, the former Campari executive touches on what’s next for Tequila, and learning to leverage the star power of founders Sammy Hagar and Guy Fieri.
*This feature was originally published in the February 2024 issue of The Spirits Business magazine.
How are you approaching the Tequila boom?
Within the category, we’re seeing this real need for what’s next, and I believe it to be completely additive-free. So many people came into the category drinking brands that were using additives. Now they want to know what true Tequila tastes like, what agave-forward Tequila tastes like, what bold Tequila tastes like – Tequila without additives. We think it’s going to be a real difference maker for our brand.
Do you find educating consumers about additives a challenge?
It’s a new voice, so it has to proliferate. And it’s starting to rapidly do that. I don’t think it’s a challenge. It’s not the sexiest term, ‘additive-free’; it’s almost clinical. But we’re finding that in the trade first – and that’s how these trends start – there are no obstacles to it. I think it’ll take a little more time, but it’s amplifying pretty quickly.
What demographic do you see coming to the brand?
We’re seeing everyone from legal drinking age up to Baby Boomers. I’d say the sweet spot is probably 28 to 40, folks that have jumped to Tequila or agave, and are now looking for true bold agave-forward tasting brands. So we’re honing in on consumers that are either new or have been in Tequila for a while, but are looking to take the next step in the journey.
How do you separate yourselves from other celebrity Tequila brands?
There are these celebrity Tequilas that are brand stamps, they were created by marketers or private equity, and they brought somebody on to be the face. Whereas Santo, we are an authentic celebrity brand. If you look at Sammy Hagar, he was drinking good Tequila in the 80s. He was probably the only one doing it. So he was not only the first celebrity Tequila founder [with Cabo Wabo, later sold to Campari Group], but the first celebrity spirits founder. And it came from a place of passion. He’s got a ton of things going on, but continues to want to explore Tequila and bring good Tequila to drinkers. Then you bring in Guy Fieri, who has his tastebuds on the pulse of American flavour. He wants to support independent restaurants and bars as best he can. So you’ve got this authenticity between the two of them. They’re very high-energy guys that love Tequila. So, they’re authentic in who they are and why they’re in this business. At first, we were considering how to shy away from the celebrity aspect, but now we’re embracing it because we are really the only authentic play in the space.
What innovations does Santo have planned?
In 2024, our innovation is around two existing products. The first is Mezquila, which was the original SKU in the portfolio. It was Sammy’s creation – it’s 50% mezcal, 50% our additive-free Blanco. I recognise that our Tequilas were where we had built distribution and built the brand, but this Mezquila is such a good product. It’s an approachable way for people that aren’t in the mezcal category to jump into it. We’re separating it from the Tequila portfolio, with its own marketing campaign, standalone distribution and trade outreach programme.
We also have a 110-proof [55% ABV] Blanco. We’re seeing a ton of excitement from aficionados who are looking for cask strength Tequila because it’s so flavourful and backs up a cocktail so well.
Santo recently opened a visitor centre in Cabo San Lucas. What is the strategy behind that?
It’s become a merchandising opportunity and a branding opportunity more so than an experience. We tried to make it somewhat of a distillery experience within the space, but I would say it’s not a substitute for that.
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