Patrón Tequila addresses additive-free dispute
Bacardi is in “constructive conversations” with Tequila’s regulatory body to address the topic of additives transparently following a temporary ban on Patrón exports.
Parent company Bacardi confirmed global exports of Patrón were halted for four days in February by the Consejo Regulador del Tequila (CRT), the regulatory body for Tequila.
The move was made in response to a new additive-free campaign for Patrón in the US, which debuted at the end of February. The campaign said the brand has “no secret ingredients” and is a “100% additive-free Tequila” made with only three ingredients – 100% Blue Weber agave, water and yeast.
The CRT oversees the Tequila NOM (Norma Oficial Mexicana), a four-digit number that is required to be classified as an official Tequila brand.
Bacardi confirmed the regulatory body suspended Patrón’s NOM after the brand refused to remove its ‘100% additive-free’ claim from US advertising.
But Bacardi stated that the CRT has no jurisdiction over marketing, advertising or communications in the States, citing a trade agreement between the US and Mexico signed in 2006.
The dispute over making additive-free claims in the Tequila industry came to a head last year.
In August 2024, the CRT and Mexico’s federal consumer protection agency, PROFECO (Office of the Federal Prosecutor for the Consumer), issued a statement that said the “certification of the term ‘additive free’ would cause confusion among consumers and regulated parties and in the conformity assessment activities” and “the use of the phrase ‘additive free’ as part of the commercial information displayed on the labelling of ‘Tequila’, must be previously verified and not mislead regarding the characteristics and nature of such alcoholic beverage”.
As such, PROFECO stated the term ‘additive free’ misleads and confuses consumers due to its inaccuracy, and is in violation of the Tequila NOM. The CRT issued a notice on 12 August to urge the industry to avoid the use of the phrase.
The NOM permits Tequila producers to use up to 1% of additives (also known as abocantes) in production, but this does not have to be disclosed on the label.
The global chief marketing officer for Bacardi, Ned Duggan, told The Spirits Business that after Patrón exports were halted, the company “opened up conversations with the CRT”.
He continued: “We felt like they were constructive conversations about how to approach the topic of additives in Tequila. I can’t get into the specifics of the conversation, but that actually remains ongoing. As a show of good faith, the CRT did restore our export licence after about four days of suspension.”
Patrón scrubs ‘additive-free’ from its website
As a “show of good faith”, Bacardi removed ‘additive-free’ references from Patrón’s website and is “using other language to communicate transparently about how our Tequila is made, specifying three ingredients”, Duggan explained.
He confirmed that “at this time, there are no plans to put that [additive-free] language on the website”.
He explained that with the campaign and the US-Mexico trade agreement, it was “clear that Mexican entities should not be able to interfere in advertising”.
Duggan added: “At the same time, the CRT did flex its muscle and show their power in Mexico when they halted our exports.”
When asked about the export pause last month, the CRT said: “For ethical and confidentiality reasons, it is not possible to detail the specific issues of associated companies. However, we reiterate clearly that the CRT operates under technical, legal, and objective principles, and not based on external interests.”
In terms of what action Bacardi is taking regarding the CRT’s stance about additives, Duggan said the company would continue to have “constructive conversations” with the regulatory body.
“The CRT are a very powerful organisation and they’re the sole authority that can grant certification within Tequila,” he said. “They’re saying that producers can add certain additives into their products. We’re not at all challenging them on whether or not other producers use additives, but we are challenging the CRT on the fact that we should be able to tell consumers that we don’t use them.
“We’re simply saying that some producers, like Patrón, choose not to add [additives]. We should be able to communicate that transparently, so we’re continuing to have constructive conversations about how best to do that and how to address this topic in a constructive way with the CRT.”
Duggan confirmed Patrón would continue to roll out its additive-free campaign in the US, the brand’s biggest market outside of Mexico.
“Right now we are focused on the US,” Duggan said in response to whether he would bring the campaign to other markets.
“I can’t comment on what advertising will come out in other markets, but our focus right now is on the US market. That’s where the conversation is really taking place. We’re seeing bartenders, we’re seeing Tequila drinkers really show an interest in this conversation. And this is not a new topic. Consumers have been calling for transparency from many other industries, not just Tequila. It’s happening across food and beverage. We anticipate this being something that consumers aren’t going to stop talking about.”
In terms of the decision to roll out the additive-free campaign, Duggan said this was made because of the “ongoing conversation and discussion that is happening within Tequila”.
He added: “You’re seeing it everywhere; we’re seeing additive-free menus pop up at bars and restaurants where we’re seeing bartenders recommending Tequilas that are additive free or liquor stores devote shelf space to additive-free Tequila brands.
“Patrón is the largest additive-free Tequila on the market, and we want to be able to communicate what is in our product. And so now seems like the time to give consumers what they’re asking for.”
Additive-free seal
Back in March 2023, the CRT announced an additive-free mark of its own, with Patrón receiving the CRT-endorsed seal in October that year.
This mark, however, was put “on hold until the CRT resumes assessment of the seal”, Patrón said in a statement on 1 February.
Duggan addressed the circumstances surrounding the seal: “The CRT did request that we remove the seal. They did not give us any reason for why. We’re uncertain about where the CRT will go and whether they’ll ever reinstate the ability to add an additive-free seal.
“But that’s what becomes so important about the way we talk about our product and advertising and transparency and the way we educate consumers in our Tequila. So while we’re not able to have the seal on our Tequila, we want to be able to talk about our simple ingredients in our advertising communication.”
He continued: “We would love to work with the CRT to bring back the seal and to work on how best to communicate additive free.”
Duggan highlighted that Patrón was “one of the top three biggest-selling Tequila brands in the world” and has been additive-free since its launch in 1989.
Legal battle
The CRT recently took legal action against the Additive Free Alliance (AFA), which was launched by Grover Sanschagrin, co-founder of Tequila Matchmaker, in August 2024.
The AFA outlines a four-step process for brands to join the non-profit on its website, which includes lab testing of the product and sensorial evaluation to assess if they contain additives.
The organisation previously published a list of ‘additive-free’ Tequila brands, but this was taken down over fears the CRT would stop shipments of products on the list or confiscate inventory, Sanschagrin told The Spirits Business in January.
Duggan confirmed that Patrón had worked with the AFA before and was on its list of additive-free brands when it was live on the website. He added that the company supported the AFA’s mission and commitment to transparency.
However, Patrón had decided to work instead with the CRT on the seal due to its position as the leading body in the industry.
“[The CRT] are the body that we need to be working with, and a very powerful entity within the Tequila industry,” he restated.
Duggan stressed brands “that don’t use other ingredients” should be able to “communicate freely and transparently”. He believes the issue over communicating additive-free claims is “much bigger than Patrón”, and added: “This is something that has affected our whole industry.”
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