Cazcanes Tequila Adds A Pair Of Industry Power Players To Oversee Next Phase Of Expansion

One of the fastest-growing craft tequila brands on shelves today.Cazcanes TequilaIt’s been barely a decade since Cazcanes Tequila was founded by a passionate trio of agave enthusiasts. But the brand has already established itself as one of the best-selling craft labels in the game. It was instantly embraced by ardent fans of the category, with a simple-yet-authentic message: additive-free, organic liquids, made in a traditional fashion. While larger, better-funded competitors turned to celebrities and flashy marketing to court attention, Cazcanes depended on nothing more than the quality of the juice inside the bottle. Launching with an initial investment of $250,000 from family and friends, its founders are now responsible for a portfolio with upwards of $10 million in annual sales. Now they’re bringing in some big guns to help usher in what they hope will be an era of even more impressive growth.In an exclusive to Forbes, the brand today announces the addition of Jeff Kozak as its new president. The booze industry behemoth was formerly CEO of WhistlePig Whiskey, a role he held for over seven years, during which time it ballooned to a $100 million-a-year entity. Indeed, when he stepped down earlier this year, WhistlePig was widely heralded as one of the most influential premium American whiskies on modern shelves.Joining him will be Juan Rovira, the founder of Samson and Surrey, the company responsible for the international success of Ocho Tequila and Mezcal Vago. It’s worth noting that both of these vaunted vets where at the helm when sizable outsiders stepped into their respective organizations. For Kozak, it was LVMH taking a minority stake in WhistlePig back in 2020. Rovira and his co-founder sold Samson and Surrey outright to Heavenhill two years later. Newly-minted Cazcanes advisor, Juan RoviraCazcanes TequilaWhat that foreshadows for Cazcanes is up for debate. What can’t be argued, however, is the continued rise of tequila—defying the overall economics of a stagnant spirits industry at-large. The latest data from the Distilled Spirits Council of the US showed a 1.8% dip in American Whiskey sales year-over-year, while tequila and mezcal grew by 2.9% over that same period.Super premium craft brands such as Cazcanes are leading the charge. And the addition of these particular power players signals a sizable commitment to expanding its national stature. But how does Cazcanes expect to stay true to small batch tequila production while also increasing its presence? We sat down with the new president to find out...The following interview has been edited for length and clarity.New Cazcanes president, Jeff KozakCazcanes TequilaWhy Cazcanes and why now?Jeff Kozak: “After stepping down from WhistlePig and consulting for a bit I got restless and wanted to find a home. The easy button would have been to step back into a whiskey brand but that is not where the consumer is and in my opinion, not where they are going. So, I spent a ton of time with the leading tequila brands, consumers, retailers and bartenders. In doing so, it became very apparent that the brands that are growing in the agave space are authentic, craft, additive free and have a cult following. Cazcanes ticked all boxes.”How did your experience scaling WhistlePig inform your decision to lead an early-stage tequila brand?JK: “The key is always around the people behind the brand. With Cazcanes there is a young team with no ego, all working toward the same goal – building a great brand. That was sorefreshing versus some of the other playbooks which can feel very manufactured. The enthusiasm is contagious.”What parallels — or meaningful differences — do you see between where WhistlePig was when you joined and where Cazcanes sits today?”JK: “WhistlePig was a disrupter from day one in the industry. We had a funny name, memorable packaging, an eye watering price point and no history. Cazcanes similarly also sits apart from the crowd of celebrity tequila or the brands with a lineage of history. We have to write the story every day as we go to market as we can’t reference years of history or tradition. This frees you from the restraints other brands have but also then pushes you to deliver more.”What are the first 100 days in the role going to look like?JK: “It is a balancing act, Cazcanes is a decent sized brand now doing over $10 million in retail sales based on Nielsen’s latest report. So there is certainly structure that needs to be added but you also don’t want to damage the brand by adding unnecessary constraints.”What’s the biggest misconception people have about joining a craft brand after leading a major whiskey success story?JK: “I think a lot of people believe it is a rinse and repeat which might be the case with a celebrity brand but not when it is a craft product. Each brand demands a different approach as this is not a manufactured story. Cazcanes was a digital-first brand, built through agave influencers and aficionados that were looking for something new. The trick is to have the early adopters continue to beat the drum as you talk to new consumers while not alienating either.”Where do you believe Cazcanes sits in the rapidly expanding tequila landscape? Value? Premium? Ultra-premium? JK: “Cazcanes starts at $59 for the Blanco and then goes all the way up to $225 for the Extra Añejo. This sits slightly above the majority of the tequila volume and therefore gives us an advantage but also we need to explain to the customer why they should pay more.”What does “craft” really mean in tequila today, and how will you protect that positioning as the brand scales?JK: “The definition of craft is incredibly relevant with Cazncaes. Not only do we source our own volcanic spring water for our production but when we bring in barrels for our Anejo and Repo we also dechar and then rechar the barrels before further aging with three different types of char. This gives us some amazing tools to work with that not only improve our product profile but also solidifies us as craft. Seeing our original distillery in the jungle really provides a sense of how true to craft we really are.”Is Cazcanes open to outside investment, strategic partnerships, or acquisition down the road — or is the vision pure independence?JK: “The brand has always been profitable, and was built from a modest $250k investment from family and friends. The current plan is to keep on building without [private equity] money and see how far we can take it. We will likely explore international partnerships so we can remain focused on the US domestic market.”What differentiates Cazcanes from the flood of celebrity and mass-market tequila brands?JK: “You would never build a mass market brand by bringing in your own spring water, de-charring and re-charring your own barrels. The brand is built for achieving flavor first and not to hit a financial timeline.”How do you ensure transparency in a category that often lacks it?JK: “Tequila has such an advantage with the NOM which ensure consumers know where the liquid comes from. In regards to the additive question we don’t have that problem, so I feel like we punch above our own weight. What does successful brand-building look like in tequila vs whiskey?JK: “There are a lot of the same tools in the box that can be re-used but it comes down to the brand and tonality. Cazcanes is a serious brand where WhistlePig liked to poke fun at itself. You have to know your audience and yourself and ensure your delivery is consistent.”If Cazcanes achieves everything you envision, what does the company look like in 2030?JK: “If we are successful, we will continue to be pushing boundaries, more widely distributed than today, to see Cazcanes in the ‘World's 50 Best Bars’ and have a ton of fun getting there.”A Jimador (a person who works on the agave plant) is seen on an agave field in Tequila, Jalisco state, Mexico, on July 23, 2021, amid the International Tequila Day. (Photo by ULISES RUIZ / AFP) (Photo by ULISES RUIZ/AFP via Getty Images)AFP via Getty Images