1 00:00:02,120 --> 00:00:04,840 Speaker 1: You're listening to Math and Magic, a production of I 2 00:00:05,000 --> 00:00:11,960 Speaker 1: Heart Radio. So here I am in a party in Williamsburg, Brooklyn, 3 00:00:12,600 --> 00:00:14,720 Speaker 1: and suddenly I find myself speaking to the founder of 4 00:00:14,840 --> 00:00:18,760 Speaker 1: MTV and we start talking tequila. And suddenly he asked me, 5 00:00:19,120 --> 00:00:21,880 Speaker 1: you in the tequila industry, and you have that background, 6 00:00:21,960 --> 00:00:25,000 Speaker 1: I've always wanted to start a tequila company. And I 7 00:00:25,079 --> 00:00:27,240 Speaker 1: just looked at him as like, oh my god, I 8 00:00:27,240 --> 00:00:29,800 Speaker 1: think this is it. And I said, really, that was 9 00:00:29,960 --> 00:00:33,159 Speaker 1: a magical conversation. We exchanged cards, and I'm like, I 10 00:00:33,200 --> 00:00:35,120 Speaker 1: hope this is not just like a party talk. This 11 00:00:35,159 --> 00:00:38,280 Speaker 1: is real. Next day his secretary was like, Mr Pittman, 12 00:00:38,360 --> 00:00:41,040 Speaker 1: can meet on this And this day, my excitement was 13 00:00:41,159 --> 00:00:44,080 Speaker 1: over the moon about the opportunity of even just discussing 14 00:00:44,520 --> 00:00:57,080 Speaker 1: doing something with such a serial entrepreneur. I'm Bob Pittman. 15 00:00:57,240 --> 00:01:00,520 Speaker 1: Welcome to Math and Magic Stories from the Frontiers Marketing, 16 00:01:00,520 --> 00:01:03,920 Speaker 1: where we explore all the goes in the successful marketing, 17 00:01:04,120 --> 00:01:06,920 Speaker 1: from the analytical all the way to the creative, and 18 00:01:07,000 --> 00:01:09,600 Speaker 1: the mix of people in marketing, from the quants to 19 00:01:09,680 --> 00:01:12,520 Speaker 1: the promoters and everything in between. Today we're going to 20 00:01:12,640 --> 00:01:15,640 Speaker 1: straddle the border of Mexico and the United States. With 21 00:01:15,720 --> 00:01:18,720 Speaker 1: the CEO and was my co founder of Casa Dragons 22 00:01:18,720 --> 00:01:38,440 Speaker 1: Tequila to Gonzalez, although over the last eleven years, Berte 23 00:01:38,520 --> 00:01:42,360 Speaker 1: has been maniacally focused on building a new connoisseur focused 24 00:01:42,440 --> 00:01:46,120 Speaker 1: upscale tequila Casa Draganz. She has an interesting background that 25 00:01:46,280 --> 00:01:48,480 Speaker 1: got her to that spot. She was the first woman 26 00:01:48,480 --> 00:01:53,400 Speaker 1: to be a mastro tulero that's where you pronounce it well, 27 00:01:53,400 --> 00:01:55,920 Speaker 1: it sounds aboutter coming from you. And she's had ten 28 00:01:56,000 --> 00:01:59,600 Speaker 1: years with Jose Quervo, so most of her adult life 29 00:01:59,600 --> 00:02:03,320 Speaker 1: has been tequila. She has her masters from Northwestern in Chicago. 30 00:02:03,400 --> 00:02:07,480 Speaker 1: She did her undergrad in Mexico. She was a childhood entrepreneur, 31 00:02:07,920 --> 00:02:10,880 Speaker 1: a cultural ambassador from Mexico and it's the person who 32 00:02:10,919 --> 00:02:17,280 Speaker 1: introduced me to eating ant eggs and yes they were tasty. Bertel, Welcome, Bob, 33 00:02:17,360 --> 00:02:19,480 Speaker 1: excited to be here. We're gonna get into all these 34 00:02:19,480 --> 00:02:21,640 Speaker 1: stories about you, but first we want to do you 35 00:02:21,800 --> 00:02:25,040 Speaker 1: in sixty seconds? Ready to go? Ready? Do you prefer 36 00:02:25,160 --> 00:02:31,160 Speaker 1: New York or Mexico City, tough, Mexico City, shaken or stirred, stirred, 37 00:02:31,480 --> 00:02:35,799 Speaker 1: sweet or savory, savory, early riser or night owl? Both 38 00:02:36,240 --> 00:02:41,640 Speaker 1: Instagram or Twitter, Instagram Beat your mountains, beach, pretty Colo 39 00:02:41,840 --> 00:02:48,880 Speaker 1: or Diego Rivera drama or comedy comedy, Tomali's or Tacos 40 00:02:49,160 --> 00:02:54,080 Speaker 1: chocolate or vanilla chocolate, Barragon or Lego Ratta. It's about 41 00:02:54,080 --> 00:02:57,200 Speaker 1: to get a little harder. Smartest person you know. Woof, 42 00:02:57,240 --> 00:02:59,120 Speaker 1: that's a tough one. I may be in front of 43 00:02:59,160 --> 00:03:03,440 Speaker 1: them right right. You're such a different childhood hero, my grandmother, 44 00:03:03,639 --> 00:03:06,680 Speaker 1: first job, entrepreneur, set a point, set up business in 45 00:03:06,720 --> 00:03:11,160 Speaker 1: Mexico City. Secret talent photographer. Favorite TV show or movie 46 00:03:11,280 --> 00:03:13,160 Speaker 1: black mirror. This is going to be a hard one. 47 00:03:13,680 --> 00:03:16,959 Speaker 1: Favorite cocktail, Yeah, that's s toff. But there's one cocktail 48 00:03:17,080 --> 00:03:20,160 Speaker 1: made by jimmyn called the San Miguel, which is a 49 00:03:20,280 --> 00:03:23,120 Speaker 1: take on the old fashioned but made with casta blanco, 50 00:03:23,280 --> 00:03:26,480 Speaker 1: celery bidders and a twist of grape with a big 51 00:03:26,480 --> 00:03:32,320 Speaker 1: ice cube. Favorite artist. Must have travel item, comfortable backpack. 52 00:03:32,720 --> 00:03:36,040 Speaker 1: What would the title of your memoir be? Tequila Diaries. 53 00:03:36,480 --> 00:03:38,880 Speaker 1: Let's get started with you as a woman in a 54 00:03:38,920 --> 00:03:42,600 Speaker 1: traditionally male business and still dominated by man tequila. When 55 00:03:42,640 --> 00:03:45,120 Speaker 1: you jumped into it, did you feel I'm the woman 56 00:03:45,160 --> 00:03:47,960 Speaker 1: and everybody else win? When I started in the tequila category, 57 00:03:48,120 --> 00:03:50,720 Speaker 1: I was so obsessed of being part of it and 58 00:03:50,760 --> 00:03:53,360 Speaker 1: figure on our way to get into it. That In 59 00:03:53,400 --> 00:03:55,320 Speaker 1: my second day in the job, I was standing in 60 00:03:55,360 --> 00:03:58,760 Speaker 1: front of the salesforce was three people and I started 61 00:03:58,800 --> 00:04:01,720 Speaker 1: to turn around and I realized, oh, detail, there's not 62 00:04:01,760 --> 00:04:05,160 Speaker 1: a lot of women here. Early on in my career, 63 00:04:05,760 --> 00:04:09,920 Speaker 1: I decided I really didn't want to be defined as 64 00:04:09,960 --> 00:04:12,400 Speaker 1: a woman in the tequila category. I went to be 65 00:04:13,240 --> 00:04:15,920 Speaker 1: defined as a professional the tequila category. So I worked 66 00:04:15,960 --> 00:04:19,279 Speaker 1: really hard on having a strong point of view to 67 00:04:19,440 --> 00:04:22,240 Speaker 1: gain a position on the table to talk about business 68 00:04:22,240 --> 00:04:25,280 Speaker 1: and tequila. And that has been an approach that has 69 00:04:25,320 --> 00:04:27,719 Speaker 1: helped me throughout my career. So we're gonna come to 70 00:04:27,760 --> 00:04:29,160 Speaker 1: that in a few minutes, because think you get some 71 00:04:29,279 --> 00:04:33,440 Speaker 1: very useful advice. Where did this love of tequila come from. 72 00:04:33,600 --> 00:04:36,680 Speaker 1: I had the chance to represent Mexico in a program 73 00:04:36,680 --> 00:04:39,880 Speaker 1: in Japan in my early twenties. I was selected to 74 00:04:39,880 --> 00:04:42,760 Speaker 1: be a young Ambassador from Mexico to Japan, and as 75 00:04:42,760 --> 00:04:45,080 Speaker 1: part of my training, I had to eloquently speak about 76 00:04:45,120 --> 00:04:49,560 Speaker 1: Mexico's economy, or industries or history our culture. So I 77 00:04:49,600 --> 00:04:52,039 Speaker 1: got invited to travel around the country to visit different 78 00:04:52,080 --> 00:04:55,000 Speaker 1: industries and one of them was a tequila industry. After 79 00:04:55,080 --> 00:04:59,120 Speaker 1: the second day that I stayed in Tequila Jalisco. I 80 00:04:59,200 --> 00:05:02,200 Speaker 1: was enamored the production process. I was enamored with the 81 00:05:02,240 --> 00:05:05,880 Speaker 1: agave fields. I was enamored with really the role that 82 00:05:05,920 --> 00:05:09,919 Speaker 1: tequila plays in Mexican culture and in defining Mexico's image. 83 00:05:10,440 --> 00:05:12,599 Speaker 1: So I called my parents immediately and I said, I 84 00:05:12,600 --> 00:05:13,719 Speaker 1: know what I want to do. I want to go 85 00:05:13,760 --> 00:05:16,520 Speaker 1: into the tequila industry. And the youngest of three and 86 00:05:16,560 --> 00:05:20,240 Speaker 1: the only daughter, and my parents they were like, oh, please, 87 00:05:21,080 --> 00:05:22,720 Speaker 1: maybe this is the flavor of the month. You're gonna 88 00:05:22,720 --> 00:05:25,600 Speaker 1: fall in love with something else, And here we are 89 00:05:25,680 --> 00:05:29,200 Speaker 1: many years later. Statue of limitations is probably run out. 90 00:05:29,400 --> 00:05:32,400 Speaker 1: Did you drink tequila as a child? I had my 91 00:05:32,440 --> 00:05:35,800 Speaker 1: first class of tequila with my grandmother because it is 92 00:05:35,880 --> 00:05:38,600 Speaker 1: part of the Mexican table and she had an open 93 00:05:38,640 --> 00:05:41,120 Speaker 1: house every week, so we all went there and every 94 00:05:41,200 --> 00:05:44,440 Speaker 1: Sunday as a ritual, they started the lunch with a 95 00:05:44,440 --> 00:05:46,840 Speaker 1: glass of tequila. So I was sitting beside her and 96 00:05:46,839 --> 00:05:48,320 Speaker 1: I was like, is it my turn? Is it my turn? 97 00:05:48,440 --> 00:05:50,359 Speaker 1: Is it my turn? So funnily, one day she gave up. 98 00:05:50,400 --> 00:05:53,280 Speaker 1: She's like, okay, please just try it, because she needed 99 00:05:53,279 --> 00:05:55,320 Speaker 1: to get me off her back. What was that age? 100 00:05:55,920 --> 00:06:00,600 Speaker 1: Very early age, like okay and twelve, well a little more, 101 00:06:00,720 --> 00:06:02,320 Speaker 1: and you were talking about it's really part of the 102 00:06:02,360 --> 00:06:04,520 Speaker 1: table in Mexico, And I'm not sure people in the 103 00:06:04,600 --> 00:06:07,320 Speaker 1: US appreciate that people drink tequila with a meal like 104 00:06:07,360 --> 00:06:10,720 Speaker 1: a wine with a meal. Yeah, in Mexico, tequila has 105 00:06:10,760 --> 00:06:15,320 Speaker 1: been the long term lover or companion of Mexican cuisine, 106 00:06:16,120 --> 00:06:18,960 Speaker 1: not only about fine dining. It's really part of the 107 00:06:19,000 --> 00:06:22,400 Speaker 1: family's table. Opening a meal with your family with a 108 00:06:22,400 --> 00:06:24,760 Speaker 1: glass of tequila is part of this ritual that brings 109 00:06:24,800 --> 00:06:28,120 Speaker 1: everyone together. Paint a picture of Mexico City in the 110 00:06:28,160 --> 00:06:31,240 Speaker 1: seventies and eighties when you were growing up. What did 111 00:06:31,279 --> 00:06:34,720 Speaker 1: it feel like? What was life like them? I had 112 00:06:34,800 --> 00:06:38,200 Speaker 1: a very well, there's not such thing as a normal upbringing, 113 00:06:38,240 --> 00:06:41,760 Speaker 1: but a very active upbringing in a very free way. 114 00:06:42,000 --> 00:06:45,440 Speaker 1: Mexico City it's a city full of culture, so I 115 00:06:45,480 --> 00:06:48,960 Speaker 1: grew up surrounded by that was already a culinary center, 116 00:06:49,080 --> 00:06:52,720 Speaker 1: an architectural center, a cinema center. That culture is so strong. 117 00:06:53,160 --> 00:06:55,520 Speaker 1: That's one of the things that truly inspired me to 118 00:06:55,560 --> 00:06:58,039 Speaker 1: dedicate my career to the tequila category. I want to 119 00:06:58,080 --> 00:07:00,279 Speaker 1: see what I grew up with in the price that 120 00:07:00,320 --> 00:07:02,240 Speaker 1: I find there and the inspiration that I found there 121 00:07:02,400 --> 00:07:05,520 Speaker 1: reflected let's go to us an entrepreneur as a kid. 122 00:07:06,080 --> 00:07:08,400 Speaker 1: Point set of business. Not exactly what I would say 123 00:07:08,480 --> 00:07:10,360 Speaker 1: is like every kid's dying to get in that business. 124 00:07:10,440 --> 00:07:12,680 Speaker 1: But talk about some of the jobs you had and 125 00:07:12,720 --> 00:07:16,240 Speaker 1: where that sort of entrepreneurial spirit came from. Mom, Dad. 126 00:07:16,280 --> 00:07:18,520 Speaker 1: You mentioned your grandmother. So I grew up in a 127 00:07:18,560 --> 00:07:24,440 Speaker 1: family of entrepreneurs. My grandfather worked for maybe Lan and 128 00:07:24,480 --> 00:07:26,920 Speaker 1: then left maybel In and then came to the US 129 00:07:27,000 --> 00:07:29,200 Speaker 1: to talk to Max Factor brothers and then brought Max 130 00:07:29,200 --> 00:07:32,400 Speaker 1: Factor to Mexico. Then he left that to start his 131 00:07:32,400 --> 00:07:35,920 Speaker 1: own cosmetics company. They built a very successful cosmetics business 132 00:07:35,960 --> 00:07:39,080 Speaker 1: in Mexico, made in Mexico. So I grew up selling cosmetics. 133 00:07:39,240 --> 00:07:41,080 Speaker 1: I put the perfume that they sold and I sold 134 00:07:41,080 --> 00:07:43,320 Speaker 1: it all over school. I always wanted to make my 135 00:07:43,360 --> 00:07:47,240 Speaker 1: own income. I was never comfortable asking for money, and 136 00:07:47,280 --> 00:07:49,840 Speaker 1: I actually made good money with that. Every December I 137 00:07:49,840 --> 00:07:52,000 Speaker 1: started a new business because if I made enough money 138 00:07:52,040 --> 00:07:54,680 Speaker 1: in December, I had some cash in the bank to 139 00:07:54,760 --> 00:07:56,080 Speaker 1: do all the other things that I wanted to do 140 00:07:56,160 --> 00:07:58,160 Speaker 1: throughout the year. Point set as is. One one year, 141 00:07:58,160 --> 00:08:00,280 Speaker 1: I wanted to compete with Hallmark because so I was 142 00:08:00,360 --> 00:08:02,960 Speaker 1: not finding something that was actually cool. So I hired 143 00:08:03,480 --> 00:08:05,560 Speaker 1: a cartoonist and I had a friend that had a 144 00:08:05,640 --> 00:08:09,600 Speaker 1: printing company, and I did this whole business of cards 145 00:08:09,600 --> 00:08:12,120 Speaker 1: in Mexico City that I sold all over town. There 146 00:08:12,160 --> 00:08:14,920 Speaker 1: was another very good business. I sold baskets of wine 147 00:08:14,960 --> 00:08:18,720 Speaker 1: all over my neighborhood every year. Started escalating and scaling. 148 00:08:18,880 --> 00:08:21,400 Speaker 1: The adventure of that and the risk of putting my 149 00:08:21,400 --> 00:08:23,880 Speaker 1: own little money and financing it and seeing it through 150 00:08:24,040 --> 00:08:27,040 Speaker 1: was something that gave me true passion. And do you 151 00:08:27,120 --> 00:08:30,720 Speaker 1: take that into business today? I do? I do. You 152 00:08:30,840 --> 00:08:32,760 Speaker 1: told me one day when we're starting this business that 153 00:08:32,840 --> 00:08:35,840 Speaker 1: you're never gonna bat, but you have to bat, you 154 00:08:35,840 --> 00:08:37,440 Speaker 1: have to play, you have to go and do it. 155 00:08:38,200 --> 00:08:41,240 Speaker 1: So you started Booze Allen as a consultant after college. 156 00:08:41,559 --> 00:08:44,160 Speaker 1: Did that lead you to tequila? And that was a 157 00:08:44,200 --> 00:08:48,000 Speaker 1: great preparation for me for the business world. I was 158 00:08:48,040 --> 00:08:51,520 Speaker 1: part of the marketing intensive group and I got assigned 159 00:08:51,559 --> 00:08:53,760 Speaker 1: to do a lot of different projects for one of 160 00:08:53,800 --> 00:08:56,880 Speaker 1: the top snack producers in the world, and did a 161 00:08:56,920 --> 00:09:00,000 Speaker 1: lot of projects in Latin American and Mexico we're doing strategy. 162 00:09:00,040 --> 00:09:03,120 Speaker 1: This in chileans strategies in Argentina, in the north of Mexico, 163 00:09:03,960 --> 00:09:06,679 Speaker 1: and I we worked very hard during four or five months. 164 00:09:06,720 --> 00:09:09,600 Speaker 1: We did the project. We gave the recommendations, We gave 165 00:09:09,600 --> 00:09:12,079 Speaker 1: this big book to this group of marketers, and then 166 00:09:12,080 --> 00:09:14,520 Speaker 1: we left, and I felt like I wanted to know 167 00:09:14,559 --> 00:09:16,520 Speaker 1: what happened, and I wanted to know how they implemented it. 168 00:09:16,559 --> 00:09:19,560 Speaker 1: I wanted to know how the journey of our strategy 169 00:09:19,559 --> 00:09:22,520 Speaker 1: and our recommendations actually played out in the marketplace. I 170 00:09:22,559 --> 00:09:26,600 Speaker 1: realized that I was more of a operator than a strategist. 171 00:09:26,679 --> 00:09:29,680 Speaker 1: And then I realized that I wanted to get into 172 00:09:29,760 --> 00:09:32,960 Speaker 1: brand management. And your undergrad degree with him what in 173 00:09:33,000 --> 00:09:35,679 Speaker 1: business administration. So it was all tied together. You were 174 00:09:35,679 --> 00:09:38,080 Speaker 1: a business not as well as the tequila not. You 175 00:09:38,160 --> 00:09:41,040 Speaker 1: went back to school to get your masters, and you 176 00:09:41,120 --> 00:09:43,920 Speaker 1: came to the US, the Northwestern Why did you decide 177 00:09:44,080 --> 00:09:47,440 Speaker 1: the US for graduate school. I had the opportunity to 178 00:09:48,400 --> 00:09:50,319 Speaker 1: come to the US to visit my brother. He was 179 00:09:50,360 --> 00:09:52,600 Speaker 1: doing a mastress in Georgetown, and I was there for 180 00:09:52,600 --> 00:09:54,760 Speaker 1: a weekend, and I saw the classrooms and I saw 181 00:09:54,800 --> 00:09:58,480 Speaker 1: the level of academia. It was so incredible. That I 182 00:09:58,520 --> 00:10:00,439 Speaker 1: decided that I wanted to do a mas to sagree 183 00:10:00,440 --> 00:10:03,280 Speaker 1: in the US. I really knew that I wanted business 184 00:10:03,280 --> 00:10:07,040 Speaker 1: and marketing, so I researched, and I realized that Northwestern 185 00:10:07,320 --> 00:10:10,520 Speaker 1: was the number one school in the country. I liked 186 00:10:10,520 --> 00:10:13,760 Speaker 1: the school better than the snow. When you came to 187 00:10:13,880 --> 00:10:17,120 Speaker 1: Northwestern to you obviously done most all of your education 188 00:10:17,280 --> 00:10:21,040 Speaker 1: in Spanish, any difference doing it in English. I was 189 00:10:21,120 --> 00:10:25,160 Speaker 1: so determined on getting to Northwestern and financing Northwestern. I 190 00:10:25,200 --> 00:10:27,760 Speaker 1: had a scholarship from the Mexican government, I have a 191 00:10:27,920 --> 00:10:31,679 Speaker 1: loan from the Institute of Fine Arts, and I was 192 00:10:31,960 --> 00:10:35,400 Speaker 1: focused on financing this whole project after getting accepted. But 193 00:10:35,520 --> 00:10:39,920 Speaker 1: then my first class was finance in English, and I realized, 194 00:10:40,240 --> 00:10:42,280 Speaker 1: oh my god, my English is good. But it was 195 00:10:42,400 --> 00:10:45,280 Speaker 1: not at that level. The rule there was if he 196 00:10:45,400 --> 00:10:48,559 Speaker 1: had two grammatical mistakes in your papers, they wouldn't read 197 00:10:48,559 --> 00:10:50,760 Speaker 1: the paper. So I spent a lot of time in 198 00:10:50,800 --> 00:10:53,080 Speaker 1: the dissertation of what I was gonna write, and then 199 00:10:53,360 --> 00:10:55,000 Speaker 1: most of the time trying to make sure that I 200 00:10:55,040 --> 00:10:58,240 Speaker 1: didn't make any mistakes. Did you know that got honor mentioned? 201 00:10:58,280 --> 00:11:02,120 Speaker 1: So I did well. Congratulations. Contrast, the experience of a 202 00:11:02,160 --> 00:11:05,280 Speaker 1: graduate school in Chicago. Other than now, of course, with 203 00:11:05,559 --> 00:11:08,800 Speaker 1: your undergrad in Mexico, I worked full time while I 204 00:11:08,880 --> 00:11:11,440 Speaker 1: was going to do my undergraduate. One of my jobs 205 00:11:11,559 --> 00:11:15,520 Speaker 1: was I worked for an entrepreneur that brought the franchise 206 00:11:15,600 --> 00:11:19,199 Speaker 1: of Dura Clean, which is cleaning services for homes and offices, 207 00:11:19,280 --> 00:11:22,840 Speaker 1: to Mexico, and I was hired to help him implement that. 208 00:11:23,559 --> 00:11:25,760 Speaker 1: He was not that focused on the business and let 209 00:11:25,760 --> 00:11:28,480 Speaker 1: me really take the reins. I was really young, and 210 00:11:28,480 --> 00:11:31,520 Speaker 1: we were able to execute up twenty two units all 211 00:11:31,520 --> 00:11:34,080 Speaker 1: over Mexico, and I had the chance in a young 212 00:11:34,120 --> 00:11:37,840 Speaker 1: age to propose every decision making, implementing a business, proving 213 00:11:37,840 --> 00:11:41,200 Speaker 1: the pilot, multiplying it in the country. So I was 214 00:11:41,320 --> 00:11:45,120 Speaker 1: completely focused on that. From Northwestern point of view, I 215 00:11:45,200 --> 00:11:48,840 Speaker 1: became a student for full time. That was a complete 216 00:11:48,840 --> 00:11:52,439 Speaker 1: novelty for me and a complete opportunity for the first 217 00:11:52,440 --> 00:11:55,800 Speaker 1: time in my career. I was so into academia. I 218 00:11:55,840 --> 00:11:58,440 Speaker 1: didn't care about the weather because it was so interesting 219 00:11:58,480 --> 00:12:02,559 Speaker 1: and so intel actually stimulating that I was very much 220 00:12:02,679 --> 00:12:05,480 Speaker 1: enjoying the experience and it was very meaningful for my career. 221 00:12:05,640 --> 00:12:08,880 Speaker 1: Looking back, What lessons did you take away from those 222 00:12:08,960 --> 00:12:12,800 Speaker 1: experiences academia that you use in business or that shaped 223 00:12:12,800 --> 00:12:17,040 Speaker 1: you as a CEO. Academia is a platform that can 224 00:12:17,080 --> 00:12:20,160 Speaker 1: help you validate your thinking. But it's not going to 225 00:12:20,240 --> 00:12:22,720 Speaker 1: say you're right or you're wrong. It's really more about 226 00:12:22,760 --> 00:12:26,280 Speaker 1: having a broader point of view on business and also 227 00:12:26,320 --> 00:12:29,800 Speaker 1: accepting that marketing and business of moving so fast that 228 00:12:29,920 --> 00:12:31,720 Speaker 1: you have to have the discipline to try and state 229 00:12:31,760 --> 00:12:34,440 Speaker 1: really connected and be humble about it. We're gonna move 230 00:12:34,480 --> 00:12:38,960 Speaker 1: you ahead to your adult years. You've finished your education. 231 00:12:39,360 --> 00:12:41,440 Speaker 1: How did you get the Jose Cuervo? So after I 232 00:12:41,480 --> 00:12:45,320 Speaker 1: graduated from Northwestern I was still thinking about the tequila industry, 233 00:12:45,520 --> 00:12:48,000 Speaker 1: and it happens that one of my friends was friends 234 00:12:48,040 --> 00:12:50,520 Speaker 1: with the CEO of for Cuervo, and he asked him 235 00:12:50,520 --> 00:12:53,960 Speaker 1: who's specializing in the marketing. We start talking. They had 236 00:12:54,000 --> 00:12:57,600 Speaker 1: just hired an incredible CEO from Brazil and then managing 237 00:12:57,640 --> 00:12:59,920 Speaker 1: director for the Mexico operation as well, and their look 238 00:13:00,120 --> 00:13:03,160 Speaker 1: to build a new team of people to help re 239 00:13:03,240 --> 00:13:06,280 Speaker 1: engineer the organization. And since I had the management consulting 240 00:13:06,320 --> 00:13:09,000 Speaker 1: background and then the marketing background, that's how I got 241 00:13:09,000 --> 00:13:11,679 Speaker 1: into the business. And it was such an incredible company 242 00:13:11,840 --> 00:13:14,200 Speaker 1: to work for and to continue this love affair with 243 00:13:14,240 --> 00:13:18,520 Speaker 1: Tequil out because it's an eleven generation round business, two 244 00:13:18,760 --> 00:13:21,800 Speaker 1: fifty year old company that actually represents the history of 245 00:13:21,800 --> 00:13:25,040 Speaker 1: tequila in its own way. So you went on to 246 00:13:25,120 --> 00:13:30,679 Speaker 1: become a maastro tequila? What does that mean? What is that? Mastro? 247 00:13:30,760 --> 00:13:34,480 Speaker 1: Tekulto is the person or group of people could be too. 248 00:13:34,480 --> 00:13:39,280 Speaker 1: Mastros that actually are the architects of a tequila are 249 00:13:39,360 --> 00:13:42,280 Speaker 1: like the master distiller of the tequila. Once we had 250 00:13:42,360 --> 00:13:47,559 Speaker 1: our first tequila Makami Garcia, who's the other mates? He's like, 251 00:13:47,600 --> 00:13:50,040 Speaker 1: why don't you get your title? And I'm like, we're 252 00:13:50,080 --> 00:13:52,400 Speaker 1: so busy, Benay, do you think I have time now 253 00:13:52,520 --> 00:13:54,640 Speaker 1: to go down to Mexico and get my title? He's like, 254 00:13:54,720 --> 00:13:56,559 Speaker 1: just call them and see if you can get your title. 255 00:13:56,920 --> 00:13:58,439 Speaker 1: So I called them and said, are you gonna take 256 00:13:58,440 --> 00:14:00,440 Speaker 1: me seriously? And really what to do it? So? I 257 00:14:00,480 --> 00:14:02,720 Speaker 1: got my title and it has a lot of meaning 258 00:14:02,720 --> 00:14:06,000 Speaker 1: and a lot of responsibility not only within our own 259 00:14:06,000 --> 00:14:08,840 Speaker 1: tequila house, but also to be part of the mesto 260 00:14:08,920 --> 00:14:13,040 Speaker 1: telos that are really truly helping leave the category in 261 00:14:13,080 --> 00:14:15,760 Speaker 1: an advanced place for the new generations. Do you think 262 00:14:15,840 --> 00:14:19,520 Speaker 1: you getting that open people's eyes too? Hey, maybe I 263 00:14:19,520 --> 00:14:21,920 Speaker 1: can do it too, that this has been something that 264 00:14:21,960 --> 00:14:26,040 Speaker 1: others want to do, especially women or younger people like you. Absolutely, 265 00:14:26,080 --> 00:14:29,400 Speaker 1: I think that the Tequila category is for anyone that 266 00:14:29,440 --> 00:14:32,440 Speaker 1: feels passion and is interested and devoted to giving the 267 00:14:32,440 --> 00:14:37,120 Speaker 1: professionalism it requires. I'm part of the professors that started 268 00:14:37,160 --> 00:14:41,120 Speaker 1: the first executive course in University of Guada Lajara called 269 00:14:41,280 --> 00:14:44,480 Speaker 1: Technical Teculto, and now the new generations can go to 270 00:14:44,560 --> 00:14:47,400 Speaker 1: the university to take a master's degree to come into 271 00:14:47,400 --> 00:14:51,560 Speaker 1: the category with much more academic backgrounds. For those who 272 00:14:51,600 --> 00:14:54,920 Speaker 1: don't know their geography, Gullahara is very near Tequila. Yes, 273 00:14:55,000 --> 00:14:58,000 Speaker 1: it's in the state of Jalisco. In the university is 274 00:14:58,080 --> 00:15:01,640 Speaker 1: something you should visit. Just hold on a second because 275 00:15:01,680 --> 00:15:04,000 Speaker 1: we've got so much more to talk about. We'll be 276 00:15:04,040 --> 00:15:10,880 Speaker 1: back after a quick break. Welcome back to math and magic. 277 00:15:11,160 --> 00:15:15,640 Speaker 1: We're here with te Gonzalez. So let's jump into the obvious. 278 00:15:15,680 --> 00:15:18,720 Speaker 1: You and me as co founders of Cossa Trigones. My 279 00:15:18,880 --> 00:15:21,800 Speaker 1: private investment firm, Islet Group, was the original funding for 280 00:15:21,840 --> 00:15:25,560 Speaker 1: Cassades and we've been linked together for eleven plus years. 281 00:15:25,760 --> 00:15:29,280 Speaker 1: Marn't you tell us your story of the beginning of Cassadgones. 282 00:15:30,000 --> 00:15:32,360 Speaker 1: So here I am in New York City in a 283 00:15:32,440 --> 00:15:36,680 Speaker 1: party in Williamsburg, Brooklyn, and suddenly I find myself speaking 284 00:15:36,720 --> 00:15:39,600 Speaker 1: to the founder of MTV and we start talking tequila. 285 00:15:39,640 --> 00:15:43,280 Speaker 1: And suddenly he asked me, you in the tequila industry, 286 00:15:43,320 --> 00:15:45,560 Speaker 1: and you have that background, I've always wanted to start 287 00:15:45,600 --> 00:15:48,640 Speaker 1: a tequila company. And I just looked at him as like, 288 00:15:49,200 --> 00:15:51,600 Speaker 1: oh my god, I think this is it. And I said, really, well, 289 00:15:51,640 --> 00:15:54,640 Speaker 1: I've always wanted to be an entrepreneur. That was a 290 00:15:54,760 --> 00:15:58,000 Speaker 1: magical conversation. We exchanged cards and I'm like, I hope 291 00:15:58,040 --> 00:16:00,280 Speaker 1: this is not just like a party. Talk this system real. 292 00:16:00,800 --> 00:16:03,280 Speaker 1: Next day his secretary was like, Mr Pittman can meet 293 00:16:03,280 --> 00:16:06,080 Speaker 1: on this And this day, my excitement was over the 294 00:16:06,080 --> 00:16:10,880 Speaker 1: moon about the opportunity of even just discussing the possibility 295 00:16:10,960 --> 00:16:15,120 Speaker 1: of actually doing something with such a serial entrepreneur. Why 296 00:16:15,280 --> 00:16:17,600 Speaker 1: version of courses that I used to live in Mexico 297 00:16:17,720 --> 00:16:20,040 Speaker 1: a couple of months a year, there was a bootleg 298 00:16:20,040 --> 00:16:23,520 Speaker 1: to quille in town that the Expats would drink, and 299 00:16:23,560 --> 00:16:26,040 Speaker 1: they loved it because it was so smooth, Because most 300 00:16:26,080 --> 00:16:29,560 Speaker 1: tequila has that wentz facter that you shoot it and 301 00:16:29,680 --> 00:16:31,400 Speaker 1: scrunch up your face a little bit, or you use 302 00:16:31,480 --> 00:16:33,880 Speaker 1: a salt or lime to help you get through it, 303 00:16:34,280 --> 00:16:36,040 Speaker 1: and they said none of that. So it's like drinking 304 00:16:36,080 --> 00:16:39,680 Speaker 1: a nice whiskey or something Scotch Corgnac. And my son 305 00:16:39,920 --> 00:16:42,400 Speaker 1: was working in Las Vegas. Brought a buddy down who 306 00:16:42,480 --> 00:16:44,400 Speaker 1: ran one of the nightclubs, and we drank this stuff 307 00:16:44,440 --> 00:16:46,320 Speaker 1: one night. In the next morning he goes, Mr Pittman, 308 00:16:46,600 --> 00:16:48,240 Speaker 1: you know, I get a thousand dollars a bottle for 309 00:16:48,280 --> 00:16:50,440 Speaker 1: Christall in my club. I could get ten thousand dollars 310 00:16:50,480 --> 00:16:52,880 Speaker 1: a jug for this. So I think, Wow, there's a 311 00:16:52,880 --> 00:16:54,960 Speaker 1: business idea here. And I come back to New York 312 00:16:54,960 --> 00:16:56,920 Speaker 1: realize I know no one in the Spirit's business, really, 313 00:16:57,440 --> 00:16:59,680 Speaker 1: And then I encounter you at this party and I 314 00:16:59,720 --> 00:17:01,880 Speaker 1: think I'm wearing the conversations what do you do for 315 00:17:01,920 --> 00:17:04,160 Speaker 1: a living? Did you go where it was like where 316 00:17:04,160 --> 00:17:06,320 Speaker 1: I will? And I go, this is fake. Quit your 317 00:17:06,400 --> 00:17:08,080 Speaker 1: job can be my partner. I have a great idea. 318 00:17:08,160 --> 00:17:10,679 Speaker 1: Maybe I wasn't so blunt, but that's certainly what I 319 00:17:10,720 --> 00:17:13,040 Speaker 1: was thinking in my mind. You decided that you would 320 00:17:13,040 --> 00:17:15,960 Speaker 1: come aboard and take the chance, And of course I'm simpleton, 321 00:17:16,040 --> 00:17:17,919 Speaker 1: and I think we'll just make that bootleg stuff legal 322 00:17:17,960 --> 00:17:19,080 Speaker 1: and will bring it around in the US will make 323 00:17:19,080 --> 00:17:21,520 Speaker 1: a fortune. You called me from Mexico and said, Bob, 324 00:17:21,520 --> 00:17:23,959 Speaker 1: I had bad news for you. That stuff is actually 325 00:17:23,960 --> 00:17:26,639 Speaker 1: not tequila. They mixed all sorts of stuff with it 326 00:17:26,680 --> 00:17:28,760 Speaker 1: to make it that smooth, and that makes it not tequila. 327 00:17:28,800 --> 00:17:31,560 Speaker 1: But as always with you, you didn't say that's a problem. 328 00:17:31,600 --> 00:17:34,359 Speaker 1: You said, but I have an idea, and I showed 329 00:17:34,440 --> 00:17:36,280 Speaker 1: up in Mexico, I think a couple of weeks later, 330 00:17:36,359 --> 00:17:38,679 Speaker 1: and you've convinced one of the great tequila makers of 331 00:17:38,720 --> 00:17:41,560 Speaker 1: Mexico to come out of retirement to do one more tequila. 332 00:17:42,000 --> 00:17:44,720 Speaker 1: He said, you know, there's a process I've always wanted 333 00:17:44,760 --> 00:17:47,760 Speaker 1: to use on tequila. If I'm correct, it'll be the 334 00:17:47,800 --> 00:17:49,800 Speaker 1: smooth and it'll be out of a hundred percent of Gaby. 335 00:17:50,200 --> 00:17:52,800 Speaker 1: That sort of began the story, and you and he 336 00:17:52,840 --> 00:17:54,840 Speaker 1: went away and came back. Why, I guess about a 337 00:17:54,880 --> 00:17:58,760 Speaker 1: year later, nine months later with the liquid, did you 338 00:17:58,800 --> 00:18:01,080 Speaker 1: think you were making a big mistake leaving a great 339 00:18:01,119 --> 00:18:04,080 Speaker 1: job at Jose Cuervo. You love the people, They obviously 340 00:18:04,119 --> 00:18:07,200 Speaker 1: loved you. You guys were doing great work. To come 341 00:18:07,840 --> 00:18:13,520 Speaker 1: to a startup. I was so excited about become an 342 00:18:13,600 --> 00:18:18,080 Speaker 1: entrepreneur that once I made my decision, I've really never 343 00:18:18,400 --> 00:18:20,879 Speaker 1: looked back, never thought what would have been, or never 344 00:18:20,960 --> 00:18:26,000 Speaker 1: thought I should have stayed. Because starting a company it's 345 00:18:26,040 --> 00:18:30,520 Speaker 1: such an incredible journey that there's no time for the past. 346 00:18:30,560 --> 00:18:33,200 Speaker 1: There's only time for the present in the future. So 347 00:18:33,280 --> 00:18:38,160 Speaker 1: let's break the Conca Dragons startup story down into the pieces, 348 00:18:38,200 --> 00:18:40,040 Speaker 1: just as an illustration I think to people do going 349 00:18:40,080 --> 00:18:43,440 Speaker 1: through startups. There was really the concept, the product, the marketing, 350 00:18:43,480 --> 00:18:47,400 Speaker 1: the distribution. How would you define the concept of what 351 00:18:47,480 --> 00:18:51,040 Speaker 1: we were doing With concepts, we met on the idea 352 00:18:51,119 --> 00:18:54,439 Speaker 1: of producing a true sip in tequila, and we also 353 00:18:54,480 --> 00:18:57,000 Speaker 1: were very clear that we wanted to produce the best 354 00:18:57,040 --> 00:19:00,399 Speaker 1: possible tequila we could bring to market. Our strategy was 355 00:19:00,480 --> 00:19:03,280 Speaker 1: to compete with products. We wanted to compete with credentials, 356 00:19:03,280 --> 00:19:06,320 Speaker 1: and we wanted to compete with quality and product uniqueness. 357 00:19:06,359 --> 00:19:08,640 Speaker 1: We wanted a tequila that could stand on its own 358 00:19:08,720 --> 00:19:10,919 Speaker 1: on the table and you could recognize that it was 359 00:19:10,960 --> 00:19:14,639 Speaker 1: cassa and it was made for sipping. Those continued to 360 00:19:14,680 --> 00:19:18,120 Speaker 1: be the foundation of the company. Our values in the company, 361 00:19:18,119 --> 00:19:22,200 Speaker 1: we're trying to be tequila producers that are truly pushing 362 00:19:22,200 --> 00:19:26,240 Speaker 1: the conversation of tequila production into the future while delivering 363 00:19:26,280 --> 00:19:29,959 Speaker 1: and proving that tequila has incredible credentials and can compete 364 00:19:30,000 --> 00:19:33,760 Speaker 1: with other very established categories. We had the deal, the 365 00:19:33,800 --> 00:19:37,160 Speaker 1: handshake that if we couldn't deliver a truly differentiated liquid, 366 00:19:37,480 --> 00:19:39,439 Speaker 1: we were not going to bring the product to market. 367 00:19:39,760 --> 00:19:42,119 Speaker 1: You knew from the investor side there's a lot of 368 00:19:42,160 --> 00:19:45,080 Speaker 1: bad ideas in the marketplace that people fall in love with, 369 00:19:45,480 --> 00:19:47,720 Speaker 1: and from my side, I knew from a competitive set 370 00:19:48,359 --> 00:19:50,359 Speaker 1: that it was going to be very difficult to cut 371 00:19:50,359 --> 00:19:53,520 Speaker 1: through the clutter with something unique. I want to emphasize 372 00:19:53,520 --> 00:19:55,320 Speaker 1: that because that was the deal you and I cut 373 00:19:55,880 --> 00:19:59,400 Speaker 1: is let's don't get deal fever. Let's don't kid ourselves, 374 00:19:59,480 --> 00:20:02,680 Speaker 1: let's don't to ourselves. Before we started the journey, we said, 375 00:20:02,720 --> 00:20:06,240 Speaker 1: if we taste this and it's not differentiated, I put 376 00:20:06,240 --> 00:20:08,480 Speaker 1: five tequilas on the table and I can't pick hours 377 00:20:08,520 --> 00:20:11,119 Speaker 1: out of it, We're gonna shut down and say, great tribe, 378 00:20:11,119 --> 00:20:14,159 Speaker 1: but we're not going any further. Not many people do that. 379 00:20:14,200 --> 00:20:17,040 Speaker 1: I don't think you can only imagine how committed I 380 00:20:17,119 --> 00:20:20,560 Speaker 1: was to making that work. Once we have something truly 381 00:20:20,600 --> 00:20:24,119 Speaker 1: special and unique that inspired our packaging, we wanted to 382 00:20:24,119 --> 00:20:28,280 Speaker 1: do a packaging that was truly showcasing Mexican craftsmanship. We 383 00:20:28,359 --> 00:20:31,320 Speaker 1: wanted to showcase at elevate and celebrate it. And that's 384 00:20:31,320 --> 00:20:34,760 Speaker 1: where the idea of doing a modern decanter made in 385 00:20:34,800 --> 00:20:37,800 Speaker 1: a semi automatic process that is individually handing grave with 386 00:20:37,840 --> 00:20:41,720 Speaker 1: that traditional Mexican technique call pepita. We went out of 387 00:20:41,760 --> 00:20:44,199 Speaker 1: our way to showcase that craftmanship and everything we do 388 00:20:44,280 --> 00:20:49,320 Speaker 1: from our production process to our packaging, and through that journey, 389 00:20:49,560 --> 00:20:53,760 Speaker 1: we then found that Casa Ragones, which is this house 390 00:20:53,800 --> 00:20:57,159 Speaker 1: in San Miglide that you owned, had all this history 391 00:20:57,160 --> 00:20:59,520 Speaker 1: and all the heritage. It used to be the stables 392 00:20:59,520 --> 00:21:03,080 Speaker 1: of the dry goons that masterminded the movement of Mexican independence. 393 00:21:03,760 --> 00:21:06,560 Speaker 1: And I think this empty b rebelliousness as something that 394 00:21:06,600 --> 00:21:09,520 Speaker 1: you carry with you, that's contagious, that really builds fire 395 00:21:09,920 --> 00:21:12,919 Speaker 1: under people's belly, was something we all wanted to have 396 00:21:13,000 --> 00:21:16,399 Speaker 1: in our own company. Casas that meaning for us of 397 00:21:16,520 --> 00:21:19,679 Speaker 1: being rebellious and independent producers that are trying to do 398 00:21:19,800 --> 00:21:23,080 Speaker 1: things differently, that are truly trying to expand their repertoire 399 00:21:23,160 --> 00:21:27,280 Speaker 1: or complement the repertoire for the consumer with truly unique offerings. 400 00:21:27,480 --> 00:21:31,639 Speaker 1: If we couldn't become the connoisseurs favorite tequila. We were 401 00:21:31,640 --> 00:21:33,439 Speaker 1: going to close up and go home too. That was 402 00:21:33,440 --> 00:21:36,480 Speaker 1: our second step. So that was a little related to product, 403 00:21:37,080 --> 00:21:40,280 Speaker 1: some the pricing, some the marketing. So talk a little 404 00:21:40,280 --> 00:21:42,720 Speaker 1: bit about how that influenced your idea of pricing, and 405 00:21:42,760 --> 00:21:46,800 Speaker 1: talk about the marketing idea and plan for casts with 406 00:21:46,920 --> 00:21:51,000 Speaker 1: great commitment to quality comes price. Once we had the 407 00:21:51,000 --> 00:21:54,520 Speaker 1: product developed, we understood that we had to really penetrate 408 00:21:54,560 --> 00:21:56,879 Speaker 1: the category through a higher priceman to ensure that we 409 00:21:56,880 --> 00:22:01,439 Speaker 1: were consistent with the categories profitability. That strategy was a 410 00:22:01,440 --> 00:22:04,800 Speaker 1: difficult strategy because coming in into a category at a 411 00:22:04,880 --> 00:22:08,240 Speaker 1: higher price point, it's not a traditional entrance. Maybe the 412 00:22:08,320 --> 00:22:11,200 Speaker 1: highest price point, it's a courageous moving away and one 413 00:22:11,280 --> 00:22:15,040 Speaker 1: that requires patience and dedication. We started with that tequila 414 00:22:15,040 --> 00:22:18,840 Speaker 1: two dollars that truly represents the value that's in the product. 415 00:22:19,560 --> 00:22:21,800 Speaker 1: And we came to market in two thousand and nine, 416 00:22:21,800 --> 00:22:24,199 Speaker 1: which is the worst reception that we've seen in the 417 00:22:24,280 --> 00:22:27,520 Speaker 1: latest years. Timing wasn't perfect. I remember going out to 418 00:22:27,560 --> 00:22:30,399 Speaker 1: the streets in New York and in other cities in 419 00:22:30,400 --> 00:22:32,920 Speaker 1: the US selling our product and people looked at me 420 00:22:33,040 --> 00:22:36,320 Speaker 1: saying like you are very eloquent in English, but we're 421 00:22:36,359 --> 00:22:38,760 Speaker 1: not really sure you're reading the paper, because there is 422 00:22:38,800 --> 00:22:42,040 Speaker 1: one of the hardest recessions we've ever experienced. In the 423 00:22:42,119 --> 00:22:46,800 Speaker 1: beginning years, we counted in bottles because counting cases was depressing. 424 00:22:47,600 --> 00:22:49,760 Speaker 1: And then as time went by, we really started to 425 00:22:50,240 --> 00:22:52,920 Speaker 1: gain recognition and be able to start making the foundation 426 00:22:52,960 --> 00:22:55,600 Speaker 1: of the company stronger. We actually had a lot of 427 00:22:55,640 --> 00:23:00,320 Speaker 1: celebrities that loved cassad, a lot of big names. You 428 00:23:00,400 --> 00:23:04,439 Speaker 1: resisted the urge to market with celebrity and you chose 429 00:23:04,600 --> 00:23:08,720 Speaker 1: to market through the art world through food and wine people, 430 00:23:09,080 --> 00:23:13,200 Speaker 1: through chefs, restaurants. Talk a little bit about that decision 431 00:23:13,400 --> 00:23:17,840 Speaker 1: and how this came together. For considerableness, we had the 432 00:23:17,880 --> 00:23:23,119 Speaker 1: opportunity to seduce many palettes in the celebrity world that 433 00:23:23,200 --> 00:23:26,359 Speaker 1: became our clients, and we're really proud and grateful for 434 00:23:26,440 --> 00:23:30,080 Speaker 1: their choice. We understood the power of cats being their 435 00:23:30,119 --> 00:23:32,359 Speaker 1: favorite tequila or one of their favorite tequilas in a 436 00:23:32,400 --> 00:23:35,479 Speaker 1: genuine way, and we still believe that there's a lot 437 00:23:35,520 --> 00:23:38,760 Speaker 1: of power in that. And then we realized that in 438 00:23:38,800 --> 00:23:42,440 Speaker 1: the art world and in the culinary world, there were 439 00:23:42,480 --> 00:23:46,280 Speaker 1: also an audience that was very seduced by craftsmanship and dedication. 440 00:23:47,040 --> 00:23:51,240 Speaker 1: Do you think celebrities are overused today or was this 441 00:23:51,359 --> 00:23:55,159 Speaker 1: just a case of not right for this situation. I 442 00:23:55,200 --> 00:23:58,439 Speaker 1: think that there are stories where it makes sense and 443 00:23:58,480 --> 00:24:00,480 Speaker 1: others where it doesn't. We have to understand that it 444 00:24:00,640 --> 00:24:04,120 Speaker 1: is a powerful, powerful way to build awareness, and we're 445 00:24:04,160 --> 00:24:07,680 Speaker 1: not against it just hasn't been our strategy. I understand 446 00:24:07,680 --> 00:24:12,000 Speaker 1: that it's a lower built this way. We appreciate all 447 00:24:12,040 --> 00:24:15,240 Speaker 1: the attention that the celebrities had brought to the category 448 00:24:15,480 --> 00:24:19,080 Speaker 1: because they're promoting the category itself, so it helps us all. 449 00:24:19,680 --> 00:24:23,760 Speaker 1: But for our journey in particular, we've had rates partners 450 00:24:23,960 --> 00:24:27,360 Speaker 1: that are celebrities, but they've chosen to become investors rather 451 00:24:27,440 --> 00:24:30,120 Speaker 1: than being the face of the product. So let's jump 452 00:24:30,200 --> 00:24:32,879 Speaker 1: to distribution. Start up. You don't have enough money to 453 00:24:32,920 --> 00:24:35,280 Speaker 1: go everywhere. You're not going to compete with petrol Own 454 00:24:35,400 --> 00:24:38,480 Speaker 1: or of Oz whoever, or any of the big established players. 455 00:24:38,480 --> 00:24:41,680 Speaker 1: At this point. You made a decision to go market 456 00:24:41,720 --> 00:24:44,160 Speaker 1: by market in the US. But I thought the Mexico 457 00:24:44,240 --> 00:24:47,119 Speaker 1: example is very interesting about how things get away from you. 458 00:24:47,119 --> 00:24:48,879 Speaker 1: You and I decided we're gonna sell a couple of 459 00:24:48,920 --> 00:24:51,240 Speaker 1: cases in Mexico, but the US is the big market, 460 00:24:51,760 --> 00:24:54,719 Speaker 1: but you had one chef who fell in love with it. 461 00:24:54,760 --> 00:24:56,840 Speaker 1: Can you talk a little bit about how that happened 462 00:24:56,920 --> 00:25:00,600 Speaker 1: and how Mexico actually became for many years hal your volume. 463 00:25:00,800 --> 00:25:04,280 Speaker 1: As a result of it, Mexico per capitize the largest 464 00:25:04,280 --> 00:25:07,520 Speaker 1: tequila market in the world. We knew that we had 465 00:25:07,560 --> 00:25:10,320 Speaker 1: to establish ourselves in the Mexican market, and we had 466 00:25:10,359 --> 00:25:13,119 Speaker 1: the opportunity to do our first batch party in San 467 00:25:14,000 --> 00:25:16,240 Speaker 1: where we had a lot of chefs and one of 468 00:25:16,280 --> 00:25:18,879 Speaker 1: them was ricul Vera. Tell the audience a little bit 469 00:25:18,920 --> 00:25:21,720 Speaker 1: about who he is so enricul Vera is one of 470 00:25:21,800 --> 00:25:25,480 Speaker 1: the top chefs from Mexico. Restaurant Pujol is world renowned 471 00:25:25,560 --> 00:25:28,280 Speaker 1: and it's part of the fifty best restaurants in the world. 472 00:25:28,840 --> 00:25:31,600 Speaker 1: And he's really led the charge of these new generations 473 00:25:31,600 --> 00:25:34,080 Speaker 1: of steffs in Mexico. He's really part of the community 474 00:25:34,119 --> 00:25:36,880 Speaker 1: and has not only Pujol, but now he has Cosmi 475 00:25:36,880 --> 00:25:39,679 Speaker 1: in New York and at La in New York as well, 476 00:25:39,760 --> 00:25:43,240 Speaker 1: and Cleo Yo in Wahak and so on. And Riquet 477 00:25:43,240 --> 00:25:45,199 Speaker 1: fell in love with the product, believed in what we 478 00:25:45,200 --> 00:25:48,200 Speaker 1: were doing. Then help us relieve spread the voice about 479 00:25:48,280 --> 00:25:51,600 Speaker 1: our tequila, and with that we were able to be 480 00:25:51,680 --> 00:25:54,200 Speaker 1: part and continue to be part in a very proud 481 00:25:54,240 --> 00:25:58,240 Speaker 1: way of the culinary movement that Mexico is having. Casta 482 00:25:58,280 --> 00:26:00,960 Speaker 1: Dragon Hoven was made for sipping and pairing with food, 483 00:26:01,240 --> 00:26:04,240 Speaker 1: so being able to seduce the palettes of the chefs 484 00:26:04,440 --> 00:26:07,320 Speaker 1: and have them do very creative pairings with our tequila 485 00:26:08,160 --> 00:26:11,880 Speaker 1: was truly important for our marketing and for the product itself. 486 00:26:12,280 --> 00:26:15,439 Speaker 1: The way that the chefs give life toward tequila, it 487 00:26:15,560 --> 00:26:18,679 Speaker 1: really showcases the complexity that we've been able to deliver. 488 00:26:19,200 --> 00:26:22,360 Speaker 1: We don't see now division between Mexico and the US 489 00:26:22,359 --> 00:26:24,800 Speaker 1: are a border. From a consumer point of view. You're 490 00:26:24,840 --> 00:26:27,199 Speaker 1: doing today business in New York and to more you 491 00:26:27,240 --> 00:26:30,399 Speaker 1: and San Miguel celebrating Thanksgiving, and the day after you're 492 00:26:30,400 --> 00:26:32,360 Speaker 1: closing a deal in Mexico City, and the same thing 493 00:26:32,400 --> 00:26:35,400 Speaker 1: for the Mexico business people. We want to make sure 494 00:26:35,440 --> 00:26:39,160 Speaker 1: that we are consistent in both markets and that the 495 00:26:39,160 --> 00:26:42,000 Speaker 1: Mexico market is supporting our efforts in the US. The 496 00:26:42,119 --> 00:26:45,280 Speaker 1: US market is actually the largest spirit market in the world. 497 00:26:45,560 --> 00:26:49,840 Speaker 1: You often talk about consumer discovery and how important that 498 00:26:50,040 --> 00:26:52,280 Speaker 1: was to the brand. Talk a little bit about how 499 00:26:52,359 --> 00:26:54,520 Speaker 1: you think the consumer discover stuff and what you have 500 00:26:54,560 --> 00:26:57,280 Speaker 1: to do to make that authentic. I think for consumers 501 00:26:57,280 --> 00:27:00,960 Speaker 1: to discover, they have to be exposed to the product 502 00:27:01,119 --> 00:27:03,199 Speaker 1: from a referral point of view. Word of mouth is 503 00:27:03,280 --> 00:27:06,440 Speaker 1: very powerful. We were also very lucky to be born 504 00:27:07,200 --> 00:27:09,800 Speaker 1: in a year where we had tools like Facebook and 505 00:27:09,800 --> 00:27:13,040 Speaker 1: Twitter and then Instagram. For the consumer, when they discover 506 00:27:13,119 --> 00:27:16,320 Speaker 1: a product, they feel it's there's there's some ownership about 507 00:27:16,320 --> 00:27:19,000 Speaker 1: the products. That becomes something they discovered, and then they 508 00:27:19,040 --> 00:27:21,359 Speaker 1: want to talk about the actual product to other people. 509 00:27:21,920 --> 00:27:24,640 Speaker 1: So let's take some lessons out of this. You were 510 00:27:24,680 --> 00:27:28,960 Speaker 1: at casag Is in the launch of Hoven high end luxury. 511 00:27:29,280 --> 00:27:32,240 Speaker 1: You were at Jose Quervo totally mass market. How do 512 00:27:32,280 --> 00:27:36,159 Speaker 1: you contrast the differences between marketing high end and mass 513 00:27:36,400 --> 00:27:38,600 Speaker 1: The tools and the channels that you use for building 514 00:27:38,600 --> 00:27:41,119 Speaker 1: the awareness are truly different. You look at media in 515 00:27:41,119 --> 00:27:44,719 Speaker 1: a very different way because for a mass product, you 516 00:27:44,760 --> 00:27:47,400 Speaker 1: need to be measuring your awareness and you're all these 517 00:27:47,400 --> 00:27:49,919 Speaker 1: different indicators to make sure that you are driving and 518 00:27:49,960 --> 00:27:53,800 Speaker 1: pushing the needle forward. In luxury, we need the same awareness, 519 00:27:53,840 --> 00:27:56,199 Speaker 1: but it's how you build it. Let's talk packaging. In 520 00:27:56,240 --> 00:27:58,960 Speaker 1: the cancer drugs case, you had a liquid. You knew 521 00:27:59,000 --> 00:28:00,359 Speaker 1: what you wanted to be. Now he had to come 522 00:28:00,440 --> 00:28:03,800 Speaker 1: up with the package. How to harmonize packaging to the product. 523 00:28:04,520 --> 00:28:08,840 Speaker 1: We took inspiration from the core and the heart of 524 00:28:08,880 --> 00:28:11,600 Speaker 1: the product, which is the tequila, the sipping tequila, the 525 00:28:11,680 --> 00:28:14,320 Speaker 1: experience that we wanted to portray of people sipping and 526 00:28:14,440 --> 00:28:18,719 Speaker 1: enjoying and savoring. We wanted something that represented that elegance 527 00:28:18,880 --> 00:28:23,080 Speaker 1: and that sophistication of flavor and that complexity, and also 528 00:28:23,160 --> 00:28:25,879 Speaker 1: showcase the meticulous attention to detail that we have in 529 00:28:25,880 --> 00:28:28,879 Speaker 1: the production process. That was the brief for the packaging. 530 00:28:29,119 --> 00:28:33,360 Speaker 1: So we looked all over Mexico flea markets, museums, went 531 00:28:33,400 --> 00:28:37,200 Speaker 1: to the largest collections of tequila all over the Mexican market, 532 00:28:37,840 --> 00:28:41,240 Speaker 1: did the most discovery that we could to find inspiration. 533 00:28:41,800 --> 00:28:44,480 Speaker 1: One day after doing all these research, I was in 534 00:28:44,520 --> 00:28:48,240 Speaker 1: the Musee Popular in Mexico City. It's a museum of 535 00:28:48,280 --> 00:28:51,280 Speaker 1: popular art and they had the history of the production 536 00:28:51,320 --> 00:28:54,800 Speaker 1: of glass in Mexico, and in that exhibit I found 537 00:28:55,120 --> 00:28:58,720 Speaker 1: all these apothecary bottles and a lot of work in 538 00:28:58,760 --> 00:29:02,680 Speaker 1: the engraving of pepita, and that was immediately what became 539 00:29:02,840 --> 00:29:05,880 Speaker 1: the first idea for our packaging, and then it really 540 00:29:05,880 --> 00:29:10,160 Speaker 1: grounded everything else. Let's talk about location and backstory. The 541 00:29:10,160 --> 00:29:13,800 Speaker 1: tequila is made in Tequila state of Alisco, but your 542 00:29:13,800 --> 00:29:16,080 Speaker 1: spiritual home is San Miguel Day and matter of fact, 543 00:29:16,120 --> 00:29:17,840 Speaker 1: is written on the bottom of the bottle of the hoven. 544 00:29:18,440 --> 00:29:20,680 Speaker 1: Why is that important to you? Why is it important 545 00:29:20,680 --> 00:29:23,360 Speaker 1: to have that spiritual home, that backstory, How does that 546 00:29:23,400 --> 00:29:26,240 Speaker 1: play into a product. That's the heart of where we 547 00:29:26,320 --> 00:29:30,760 Speaker 1: thought about our business, where we closed our partnership, where 548 00:29:31,120 --> 00:29:34,440 Speaker 1: the idea of our name came from, where the liquid 549 00:29:34,480 --> 00:29:37,560 Speaker 1: idea came from. So there's a true route to us 550 00:29:37,960 --> 00:29:40,840 Speaker 1: that we've been able to build upon. San Miguel, and 551 00:29:40,880 --> 00:29:45,160 Speaker 1: they also represents this extraordinary Mexico that we want people 552 00:29:45,200 --> 00:29:48,440 Speaker 1: to say. It's a world's heritage side by Unesco, It's 553 00:29:48,440 --> 00:29:50,440 Speaker 1: one of the most elegant colonal towns in the heart 554 00:29:50,440 --> 00:29:52,840 Speaker 1: of Mexico, but it's also a town that has a 555 00:29:52,920 --> 00:29:55,520 Speaker 1: lot of character. It's also a town that represents the 556 00:29:55,560 --> 00:29:58,480 Speaker 1: fun side of Tequila. Not only it's not about the elegance, 557 00:29:58,520 --> 00:30:01,200 Speaker 1: but also the local people, the entrepreneurs that live there, 558 00:30:01,520 --> 00:30:04,400 Speaker 1: the history of the city. It was already our spiritual home, 559 00:30:04,480 --> 00:30:07,560 Speaker 1: and then we actually recognized it. Let's jump to startups. 560 00:30:07,800 --> 00:30:09,440 Speaker 1: You and I met each other and we were Wow, 561 00:30:09,560 --> 00:30:13,760 Speaker 1: great idea. We had nothing except an idea. What's the 562 00:30:13,840 --> 00:30:18,120 Speaker 1: scariest part of that? When someone makes that jump, there 563 00:30:18,320 --> 00:30:25,800 Speaker 1: is this mix of passion and determination. With naivete, you 564 00:30:25,840 --> 00:30:30,520 Speaker 1: get accustomed to having these urges of feelings and emotions 565 00:30:30,520 --> 00:30:33,000 Speaker 1: that you live with on a regular basis. You have 566 00:30:33,480 --> 00:30:35,800 Speaker 1: a lot of high highs and a lot of low lows, 567 00:30:36,240 --> 00:30:38,400 Speaker 1: and on the average of all of that, if you 568 00:30:38,480 --> 00:30:42,520 Speaker 1: managed to stay sane to have the clarity to build 569 00:30:42,520 --> 00:30:45,320 Speaker 1: your business. I don't think there's a formula for it, 570 00:30:45,880 --> 00:30:48,840 Speaker 1: but you feel close to that horror or that living 571 00:30:48,880 --> 00:30:52,480 Speaker 1: close to the abyssum on a regular basis, and every 572 00:30:52,480 --> 00:30:54,800 Speaker 1: decision that you take could be a dead end, right. 573 00:30:54,920 --> 00:30:57,240 Speaker 1: It could bring you to not being able to raise 574 00:30:57,280 --> 00:30:59,520 Speaker 1: a capital, or not being able to bring a product 575 00:30:59,560 --> 00:31:02,280 Speaker 1: to market it, or not having the right packaging when 576 00:31:02,280 --> 00:31:04,680 Speaker 1: you exported that it leaks, or all these different things 577 00:31:04,680 --> 00:31:07,080 Speaker 1: that coming to the decision making of starting a business. 578 00:31:07,840 --> 00:31:11,040 Speaker 1: So there was not one moment that I can remember, 579 00:31:11,080 --> 00:31:14,320 Speaker 1: because the last moment is forgotten so quickly because you 580 00:31:14,360 --> 00:31:16,280 Speaker 1: already have the next moment in front of you. So 581 00:31:16,320 --> 00:31:19,000 Speaker 1: that's the horror. Let's talk about the easy part. What 582 00:31:19,080 --> 00:31:21,800 Speaker 1: was easier than you expected about being a CEO and 583 00:31:21,840 --> 00:31:25,240 Speaker 1: a startup? We never talked about it being easy. So 584 00:31:25,400 --> 00:31:29,680 Speaker 1: is there anything easy? I think creating the product and 585 00:31:29,720 --> 00:31:33,040 Speaker 1: creating the brands, it was not easy, but it was magic. 586 00:31:33,480 --> 00:31:36,760 Speaker 1: It was really something that I love and I feel 587 00:31:36,840 --> 00:31:41,320 Speaker 1: proud of and I find inspiration from still today when 588 00:31:41,360 --> 00:31:44,160 Speaker 1: we're growing our portfolio and we're going to different places. 589 00:31:44,560 --> 00:31:47,520 Speaker 1: That passion in that core of excitement of creating a 590 00:31:47,520 --> 00:31:52,560 Speaker 1: product with everything you've Dramma doing and more, that is 591 00:31:52,760 --> 00:31:55,080 Speaker 1: for me one of the most incredible parts of this 592 00:31:55,160 --> 00:31:59,720 Speaker 1: whole business. So what skills does the CEO need that 593 00:32:00,080 --> 00:32:03,200 Speaker 1: might not be so obvious until you are one. Staying 594 00:32:03,200 --> 00:32:06,600 Speaker 1: close to reality is one that is really important. Knowing 595 00:32:06,600 --> 00:32:08,560 Speaker 1: where you stand. You need to be in the center 596 00:32:08,600 --> 00:32:10,400 Speaker 1: and you have mirrors all over you to make sure 597 00:32:10,440 --> 00:32:13,400 Speaker 1: you understand what you have and what you don't, and 598 00:32:13,440 --> 00:32:15,720 Speaker 1: work for what you have and hire for what you don't, 599 00:32:16,800 --> 00:32:21,120 Speaker 1: make sure that you'd have true passion for it, because 600 00:32:21,480 --> 00:32:24,200 Speaker 1: you're gonna need that passion to find the hours of 601 00:32:24,280 --> 00:32:27,320 Speaker 1: dedication and the solutions to move your business forward. You've 602 00:32:27,360 --> 00:32:30,080 Speaker 1: been selling since you were selling those points at the 603 00:32:30,360 --> 00:32:34,400 Speaker 1: greeting cards, etcetera. So you have some knack for sales. 604 00:32:34,560 --> 00:32:38,120 Speaker 1: What's your secret on sales? Know your audience and know 605 00:32:38,240 --> 00:32:42,320 Speaker 1: your products. The product has its qualities and characteristics, but 606 00:32:42,840 --> 00:32:45,400 Speaker 1: you sell the product differently to a high end liquor 607 00:32:45,440 --> 00:32:47,840 Speaker 1: store than you sell it to a fine dining establishment. 608 00:32:48,680 --> 00:32:51,280 Speaker 1: So knowing your audience and knowing your product and in 609 00:32:51,400 --> 00:32:55,560 Speaker 1: being able to actually use those cards, you will be 610 00:32:55,800 --> 00:33:00,000 Speaker 1: more powerful as a sales person. It's really about understanding 611 00:33:00,040 --> 00:33:02,640 Speaker 1: who you're speaking to and really knowing your product to 612 00:33:02,680 --> 00:33:06,320 Speaker 1: the side, what are the characteristics and the sale claims 613 00:33:06,320 --> 00:33:09,640 Speaker 1: that you're going to use for that audience. What advice 614 00:33:09,840 --> 00:33:13,600 Speaker 1: would you have for the eighteen year Alberta? Don't doubt 615 00:33:13,680 --> 00:33:17,840 Speaker 1: yourself that much. Focus on the opportunity. What would be 616 00:33:17,880 --> 00:33:20,440 Speaker 1: the best device you have for would be entrepreneur with 617 00:33:20,520 --> 00:33:25,000 Speaker 1: an idea, just an idea, having the right preparation. It 618 00:33:25,040 --> 00:33:29,440 Speaker 1: could be work experience, it could be industry knowledge, it 619 00:33:29,520 --> 00:33:32,880 Speaker 1: could be capital raising experience. It depends on the venture. 620 00:33:33,680 --> 00:33:35,840 Speaker 1: But you need to walk into the venture with some 621 00:33:36,560 --> 00:33:40,560 Speaker 1: true ammunition to pour into the projects that you feel 622 00:33:40,560 --> 00:33:45,120 Speaker 1: secure about. That will be an important foundation for any venture. 623 00:33:45,360 --> 00:33:47,600 Speaker 1: For young people who want a career in spirit, what 624 00:33:47,680 --> 00:33:50,200 Speaker 1: advice would you offer them? Work a couple of years 625 00:33:50,200 --> 00:33:53,960 Speaker 1: in the industry and understand the complexities of distribution, of production, 626 00:33:54,680 --> 00:34:00,520 Speaker 1: of legalities of trademarking. Get yourself a view of the category. 627 00:34:00,800 --> 00:34:04,720 Speaker 1: It's a complex category that requires studying and understanding. So 628 00:34:04,800 --> 00:34:07,680 Speaker 1: we end each episode with a shout out to the 629 00:34:07,800 --> 00:34:12,040 Speaker 1: range of marketers or those who support markets, from the mathematicians, 630 00:34:12,080 --> 00:34:14,960 Speaker 1: the quads, all the way to the magicians, the creative types. 631 00:34:15,200 --> 00:34:18,040 Speaker 1: Who is the most impressive person you've seen on the 632 00:34:18,080 --> 00:34:20,320 Speaker 1: analytical side, I'm gonna ask you who's the most creative 633 00:34:20,360 --> 00:34:24,759 Speaker 1: person you've seen? Also from the mathematicians side. I had 634 00:34:24,800 --> 00:34:27,800 Speaker 1: the opportunity to take classes with Philip Cutler and Kellogg 635 00:34:28,440 --> 00:34:32,480 Speaker 1: and that turned my world around. The power of marketing 636 00:34:32,560 --> 00:34:36,200 Speaker 1: and the power of analytics was something that he really 637 00:34:36,320 --> 00:34:39,560 Speaker 1: ingrained in me. Who's the creative person? I've had the 638 00:34:39,560 --> 00:34:42,919 Speaker 1: opportunity to have so many different creative people influence my life, 639 00:34:43,040 --> 00:34:45,880 Speaker 1: starting with you, Mr Pittman. I had will forgive you 640 00:34:45,960 --> 00:34:47,960 Speaker 1: for that. Let's get to the good ones. I will 641 00:34:48,000 --> 00:34:50,799 Speaker 1: go back to Northwestern. I had a professor in advertising. 642 00:34:51,360 --> 00:34:54,960 Speaker 1: His name was Stanley tannin Bound. He was a multi 643 00:34:55,000 --> 00:34:59,560 Speaker 1: awarded creative, showed me the power of a brief and 644 00:34:59,600 --> 00:35:01,839 Speaker 1: how that can transform a business, and that had can 645 00:35:01,880 --> 00:35:04,840 Speaker 1: create the magic that's based on math, that's based on analytics, 646 00:35:04,880 --> 00:35:07,640 Speaker 1: But then how do you actually created an emotional connection 647 00:35:07,680 --> 00:35:10,280 Speaker 1: with a consumer? And I think I followed that professor 648 00:35:10,320 --> 00:35:13,520 Speaker 1: around for a year, like I was like completely gaga 649 00:35:13,680 --> 00:35:16,120 Speaker 1: over the whole concept of how this happens and how 650 00:35:16,160 --> 00:35:18,399 Speaker 1: it looks. And now there's a scholarship in his name 651 00:35:18,440 --> 00:35:21,360 Speaker 1: in Northwestern because he was such an important influence in 652 00:35:21,360 --> 00:35:24,120 Speaker 1: so many different people's life and I'm one of them. 653 00:35:25,120 --> 00:35:32,719 Speaker 1: Thank you, Thank you. Here are a few things I 654 00:35:32,800 --> 00:35:35,960 Speaker 1: picked up in my conversation with Berta. Find the spiritual 655 00:35:36,000 --> 00:35:39,040 Speaker 1: home of your product. An authentic connection to a place 656 00:35:39,160 --> 00:35:42,320 Speaker 1: and a history can help build a great brand. Know 657 00:35:42,480 --> 00:35:45,279 Speaker 1: your audience and know your product. Erta says that will 658 00:35:45,320 --> 00:35:47,919 Speaker 1: allow you to tailor your marketing and distribution to reach 659 00:35:48,120 --> 00:35:53,120 Speaker 1: different markets. Finally, build a great product first. If you 660 00:35:53,120 --> 00:35:56,279 Speaker 1: can create something truly unique like Berton I did, that 661 00:35:56,360 --> 00:36:01,040 Speaker 1: foundation will support the rest of your journey. Thanks for listening. 662 00:36:01,160 --> 00:36:10,320 Speaker 1: I'm Bob Pittman. That's it for today's episode. Thanks so 663 00:36:10,400 --> 00:36:12,680 Speaker 1: much for listening to Math and Magic, a production of 664 00:36:12,760 --> 00:36:15,680 Speaker 1: I Heart Radio. This show is hosted by Bob Pittman. 665 00:36:15,960 --> 00:36:18,600 Speaker 1: Special thanks to Sue Schillinger for booking and wrangling our 666 00:36:18,640 --> 00:36:21,840 Speaker 1: wonderful talent, which is no small feat. Nikki Etre for 667 00:36:21,880 --> 00:36:25,560 Speaker 1: pulling research bill plaques, and Michael Asar for their recording help, 668 00:36:25,760 --> 00:36:29,720 Speaker 1: our editor, Ryan Murdoch, and of course Gayle Raoul, Eric Angel, 669 00:36:29,840 --> 00:36:32,759 Speaker 1: Noel Mango and everyone who helped bring this show to 670 00:36:32,840 --> 00:36:34,480 Speaker 1: your ears. Until next time,