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Patrón says all the tequila it has ever made since 1989 has been free of additives. The brand is now ready to get loud and talk about it. This week, Patrón is debuting a new additive-free marketing campaign that will run across digital, print, and out-of-home advertising in key markets including New York City and Los Angeles. The additive-free copy features lines like Our secret ingredient is that we have no secret ingredients and When tequila is this good, additives dont add anything. Since Patróns inception, the brand says it has only made tequila with three ingredients: 100% weber blue agave, water, and yeast. The few exceptions are for the brands liqueurs, including orange and coffee flavored expressions, which always include added flavoring. But even the base spirit used to make those liqueurs only feature the three core ingredients. Consumers are not going up to bartenders and asking for a tequila and soda and expecting to get a splash of caramel coloring or a sprinkle of glycerin, says Ned Duggan, chief marketing officer at Patrón, in an interview with Fast Company. We think that they want to know what’s in their tequila. Patróns additive-free campaign may reignite a debate thats been swirling in the tequila industry about the use and marketing of additives. Additives are permitted if less than 1% of the weight of the tequila, without any requirement of disclosure, according to the standards set by the Tequila Regulatory Council, or CRT, a group thats backed by tequila brands, agave producers, and distributors to monitor and certify all tequila. Common additives that are in tequila include sugars and sweeteners like fructose and aspartame, oak extract, and caramel coloring. Patrón estimates that as much as 80% of tequila brands on the shelf today use additives. [Photo: Patrón] Agave typically needs six to eight years before it is ready to harvest, but with a supply shortage and higher prices, brands have started to pull agave from the earth after just two to three years. That results in a bitter flavor, and some producers have begun to lean more heavily on additives to combat that bitterness. For aged tequilas like aejo and reposado, caramel is used to improve the consistency of the color and make it appear older, as if it had been aged in oak barrels for a longer period of time. Patrón says 61% of consumers prefer additive-free liquors, citing a global survey conducted by the brands parent company Bacardi. Retailers have taken notice too, carving out shelf space that only promotes additive-free tequilas. Some mixologists prioritize crafting additive-free tequila libations. We recognize that people are caring more and more about what they’re putting into their bodies, and also the ingredients that are in the brands that they’re putting in their bodies, says Duggan. Among the loudest proponents of additive-free clarity is Grover Sanschagrin, who along with his wife Scarlet, cofounded an app called Tequila Matchmaker. The couple had developed a program that would certify tequila brands as additive-free and then share that information with consumers who were curious to know what was in the liquor they were drinking. But last year, the Sanschagrins home was raided in Mexico, part of a pressure campaign he says was spurred by the CRTs anger about Tequila Matchmakers push for transparency. The Tequila Matchmaker app still exists for tequila reviews, but provides no information about additives. The Sanschagrins also created a new U.S.-based nonprofit called the Additive Free Alliance, which is angling to set up an independent process to identify and list additive-free brands, but thus far includes no tequila producers, only one agave-based vodka and a couple of mezcal brands. Theres a void now, says Sanschagrin. Every brand is basically saying they are additive-free and now there is no way to offer proof of that. In 2023, Patrón announced an additive-free seal, a label that was designed to appear on the brands bottles, a bid for transparency that was blessed by the CRT at the time. But that on-packaging messaging never came to fruition. I think we were a little bit ahead of the rest of the industry and the CRT ultimately requested that we not move forward, says Duggan. But that’s why it’s been so important for us to launch this campaign where regardless of whether it’s on our bottle or not, we are being forthcoming with consumers and transparent about our no additive message. A memo circulated by the CRT last year, obtained by Fast Company, told tequila producers that because additives are permitted under the 1% level, they believe there is no such thing as an additive-free tequila. The CRT ordered distillers to stop marketing tequila as additive-free, saying it was a false and misleading statement that could harm the spirits reputation with consumers. The CRT didnt respond to requests for comment. [Photo: Patrón] Sanschagrin welcomes the message that Patrón is sending with the new marketing campaign, both to consumers and tequilas regulatory body. The CRT overreached and somebody needs to check them, he says. Im excited that Patrón has decided to take this on. The additive-free movement also reflects an evolution of how tequila is produced. When tequila sales first began to boom in the U.S. in the 1980s, most were gold tequila, or mixto, a tequila made from a minimum of 51% agave and the rest from other sugars. Patróns launch, and other tequilas that have since entered the market, popularized the use of 100% agave and that claim became the aseline that consumers look for when buying any tequila north of $20. But the 100% agave claim became more difficult to stick to as tequila demand has soared. Tequila and mezcal sales now total $6.7 billion in annual revenue in the U.S. market, the second-most popular liquor category following vodka, according to the trade group the Distilled Spirits Council. Dave Karraker, president of PR consultancy Raptor Communications, says the 100% additive-free claim is a way that brands like Patrón can distinguish themselves from the crowd. How do I differentiate myself from all of these players that are adding additives, he asks. As a marketer, you’re looking for points of differentiation to lean into, that are on trend with consumers.
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E-Commerce
Nearly 40% of the federal contracts that the Trump administration claims to have canceled as part of its signature cost-cutting program aren’t expected to save the government any money, the administration’s own data shows.The Department of Government Efficiency run by Elon Musk last week published an initial list of 1,125 contracts that it terminated in recent weeks across the federal government. Data published on DOGE’s “Wall of Receipts” shows that more than one-third of the contract cancellations, 417 in all, are expected to yield no savings.That’s usually because the total value of the contracts has already been fully obligated, which means the government has a legal requirement to spend the funds for the goods or services it purchased and in many cases has already done so.“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it. It doesn’t accomplish any policy objective,” said Charles Tiefer, a retired University of Baltimore law professor and expert on government contracting law. “Their terminating so many contracts pointlessly obviously doesn’t accomplish anything for saving money.”Dozens of them were for already-paid subscriptions to the Associated Press, Politico and other media services that the administration said it would discontinue. Others were for research studies that have been awarded, training that has taken place, software that has been purchased, and interns that have come and gone.An administration official said it made sense to cancel contracts that are seen as potential dead weight, even if the moves do not yield any savings. The official was not authorized to discuss the matter publicly and spoke on condition of anonymity.In all, DOGE data says the 417 contracts in question had a total value of $478 million. Dozens of other canceled contracts are expected to yield little if any savings.“It’s too late for the government to change its mind on many of these contracts and walk away from its payment obligation,” said Tiefer, who served on the Commission on Wartime Contracting in Iraq and Afghanistan.Tiefer said DOGE appeared to be taking a “slash and burn” approach to cutting contracts, which he said could damage the performance of government agencies. He said savings could be made instead by working with agency contracting officers and inspectors general to find efficiencies, an approach the administration has not taken.DOGE says the overall contract cancellations are expected to save more than $7 billion so far, an amount that has been questioned as inflated by independent experts.The canceled contracts were to purchase a wide range of goods and services.The Department of Housing and Urban Development awarded a contract in September to purchase and install office furniture at various branches. While the contract does not expire until later this year, federal records show the agency had already agreed to spend the maximum $567,809 with a furniture company.The U.S. Agency for International Development negotiated a $145,549 contract last year to clean the carpet at its headquarters in Washington. But the full amount had already been obligated to a firm that is owned by a Native American tribe based in Michigan.Another already-spent $249,600 contract went to a Washington, D.C., firm to help prepare the Department of Transportation for the recent transition from the Biden to the Trump administration.Some of the canceled contracts were intended to modernize and improve the way government works, which would seem to be at odds with DOGE’s cost-cutting mission.One of the largest, for instance, went to a consulting firm to help carry out a reorganization at the Centers for Disease Control and Prevention’s National Center for Immunization and Respiratory Diseases, which led the agency’s response to the COVID-19 pandemic. The maximum $13.6 million had already been obligated to Deloitte Consulting LLP for help with the restructuring, which included closing several research offices. Foley reported from Iowa City, Iowa. Ryan J. Foley, Associated Press
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E-Commerce
Investors in cryptocurrencies are seeing red today. In the past 24 hours, the prices of most major cryptocurrencies and meme coins have plummeted. This includes crypto heavyweights like Bitcoin, Ethereum, and XRP as well as popular meme coins like Dogecoin (DOGE) and TRUMP. Heres what to know about the biggest losers and possible reasons behind the crash. Bitcoin drops below $90K for the first time since November Unsurprisingly, the crypto that is getting the most headlines today is Bitcoin, which as of the time of this writing currently sits at around $89,000 per coin. Thats a 7% drop in the last 24 hours alone. It also represents of few other ignominious milestones for the cryptocurrency king as of late. First, todays decline marks the first time that Bitcoin has fallen below $90,000 since November 2024, after Donald Trump’s election victory sparked a crypto rally. Second, Bitcoin is now also down 20% since another important Trump marker: his inauguration day on January 20. On Trumps inauguration day, Bitcoin had hit an all-time high of over $106,000. The postelection victory and post-inauguration gains were largely fueled by the belief that a Trump presidency would be good for the crypto markets in general. But its not just Bitcoin that is plummeting today. Other cryptocurrencies are as well. Those include (as of the time of this writing): Ethereum, which is down almost 10% in the past 24 hours (and down over 27% in the past month). XRP, which is down over 12% in the past 24 hours (and down over 31% in the past month) Solana, which is down almost 12% in the past 24 hours (and down over 46% in the past month) Dogecoin, which is down almost 11% in the past 24 hours (and down over 42% in the past month) Official Trump, which is down almost 14% in the past 24 hours (and down over 56% in the past month) But what exactly is causing todays crypto crash? While the digital assets do tend to be highly volatile anyway, the general consensus among crypto industry watchers is that two main events could be contributing to the plunge. Trumps tariffs lead to macroeconomic uncertainty While Trumps election victory was hailed as the best possible outcome for the crypto industry, it now appears that Trump could be doing more harm than good for digital currency markets. Thats because since Trump was sworn in, he quickly set to initiating tariffsor at least threatening toagainst Americas major trading partners, including China, Mexico, Canada, and nearly every other country in the world. Many fear these that tariff threats may lead to an all-out trade war between America and other major economies. Indeed, as BeinCrypto points out, after Trump seemed to confirm yesterday that the tariffs on Mexico and Canada would be moving ahead, Bitcoin sank and crypto markets saw almost $1 billion in liquidations. When there is macroeconomic uncertaintylike the kind generated by potential trade warsinvestors usually seek to lock in gains where they can by selling assets that have had good returns as of late. Larger anxieties about where the economy may be headed may be driving many crypto investors to take their profits now to buffer any losses in the future. The Bybit hack reminds crypto investors they are vulnerable It’s not just Trumps actions that are rattling crypto investors. Last week, the cryptocurrency exchange Bybit was hacked, leading to $1.5 billion dollars of cryptocurrencies being stolen. It is reportedly the largest crypto heist on record and is believed to have been carried out by actors in North Korea, reports CNN. Major crypto heists in the past have rattled investor confidence, and this one is no different. Heists such as this remind investors that cryptocurrencies are more readily at risk of theft than other assets, such as stocks or properties. To put the Bybit hack into greater perspective, Reuters reports that in all of 2024, there was $2.2 billion worth of crypto stolen. The ByBit hack signals that 2025 may be an even bigger year for crypto heists.
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E-Commerce
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