Grey Canada president Stephanie Nerlich is just back from Mexico, where she was conducting some research into tequila – no really! – for her agency’s newest client, Tequila Herradura.
The premium tequila brand has awarded its digital CRM and below-the-line marketing assignment to Grey, which beat out what Nerlich described as “a handful” of undisclosed agencies for the global assignment.
Grey’s purview with Tequila Herradura includes social and digital, as well as packaging and shopper activation work. “It’s any place where we can look to build advocacy with our consumer,” said Nerlich. “Working on any aspect of the business that will allow us to tell the story of this brand in greater ways.”
The agency’s first work for Tequila Herradura is expected in the late summer/early fall, said Nerlich. The account will be serviced out of Grey’s Toronto office.
This is Grey’s first time working with Tequila Herradura parent Brown-Forman – which acquired Tequila Herradura parent Casa Herradura for US$876 million in 2006 – though the agency has extensive experience in the alcohol beverage category.
It has previously worked with Captain Morgan and Guinness, and also helped launch the Ketel One Vodka brand in Canada and other global markets. In 2013, Casella Wines, makers of Yellow Tail, named Grey its lead Canadian agency. “Our spirits credentials are pretty deep,” said Nerlich.
While much of Grey’s work in the alcohol category has focused on traditional mass-media marketing, Nerlich said the agency has done extensive below-the-line work for clients including Procter and Gamble and pharma giant GlaxoSmithKline.
“A lot of our clients are seeing growth in those areas, and looking to partners like us to help them create better connections with their consumers through advocacy programs,” said Nerlich. “It’s just naturally been a growing part of our business, which has enabled us to go out and pitch assignments that are stand-alone.
“If you’re really only a traditional agency you’re a dinosaur – you have to think about solving the kinds of problems your clients have, and putting the problem at the centre.”
The global Tequila Herradura assignment will focus largely on the U.S. market, where Grey already does extensive work with brands including Post Cereals and Sagicor, a Tampa-based insurance company that operates in 22 countries. “We’re pretty used to being on the road and working with U.S.-based clients,” said Nerlich.
The global tequila market is forecast to grow at a compound annual growth rate of 2.5% by revenue and 2.3% by volume through 2018, according to an October report from Research and Markets. Much of the global growth is being driven for U.S. consumer demand for premium tequila.
“That category has exploded in the last few years,” said Nerlich. “Premium tequila has really come into its own, so it’s exciting to be working with a brand that’s at the forefront of growth in the category.”
Brown-Forman awarded its global US$100 million media assignment to MediaVest from UM in December, capping a year in which it also awarded the global creative assignment to Fallon Minneapolis.
