Patrón Tequila Confirms Export Ban, Addresses ‘Ongoing’ Conversations With Authorities on Additive-Free Dispute

(Photo: Patrón Tequila)

In a statement shared by The Spirits Business, Patrón Tequila confirmed that it was temporarily blocked from exporting tequila in mid-February amid a dispute with regulatory authorities.

The issue came to a head after the tequila brand announced a marketing campaign celebrating its “no secret ingredients” recipe. On billboards that can still be found across New York and Illinois, Patrón taglined the campaign with slogans like “No Sweeteners. No Extracts. No Secrets.” and “Agave. Water. Time. Or What We Call Good Tequila.”

The move drew the ire of the Tequila Regulatory Council, which has been pushing back on independent efforts to label or certify products as additive-free. According to Patrón, the CRT responded by issuing a four-day global export ban that halted shipments of Patrón in their tracks. The ban was reportedly lifted after parent company Bacardi scrubbed all mentions of “additive free” from the Patrón website.

Patrón’s dispute with the CRT was first covered by the Financial Times in late March. At the time, neither the distiller nor regulatory authorities had corroborated the story, which had allegedly been leaked to news outlets by “people familiar with the matter.” Patrón’s statement to The Spirits Business is the first time that either party has commented publicly on the matter.

Ned Duggan, Global CMO for Bacardi, says that conversations are still evolving with the CRT behind the scenes.

“We felt like they were constructive conversations about how to approach the topic of additives in Tequila,” Duggan told The Spirits Business. “I can’t get into the specifics of the conversation, but that actually remains ongoing. As a show of good faith, the CRT did restore our export licence after about four days of suspension.”

So long as approved additives make up less than 1% of the total liquid in a bottle, tequila distillers are not required to disclose their presence on the label. Over the past few years, organizations like Tequila Matchmaker and the Additive Free Alliance have begun drawing attention to the topic. A motley crew of third-party orgs, brands and influencers has since gathered under the additive-free banner, oftentimes publishing lists and buying guides recommending confirmed additive-free options.

The CRT has publicly denounced the movement on several occasions. In March, the regulator filed a lawsuit against Additive Free Alliance founder Grover Sanschagrin, claiming that his program engaged in “false and misleading advertising claims” and trademark infringement. Months earlier, the CRT allegedly sent letters to distillers compelling them to remove additive-free messaging from their labels.

Duggan insists Patrón’s campaign wasn’t about condemning additives or the industry at large. Instead, he says it’s a simple matter of transparency.

“The CRT are a very powerful organisation and they’re the sole authority that can grant certification within Tequila,” Duggan said. “They’re saying that producers can add certain additives into their products. We’re not at all challenging them on whether or not other producers use additives, but we are challenging the CRT on the fact that we should be able to tell consumers that we don’t use them.”

As it stands, the issue boils down to a matter of technicalities. In a public statement made in January 2024, regulators said that any effort to “certify,” “verify” or “confirm” spirits as additive free “represents an act contrary to good customs and practices.” Whether or not Patrón broke that rule by advertising — rather than labeling — its products as additive-free is yet to be seen.

Duggan hinted that the marketing campaign is here to stay, adding that it is “clear that Mexican entities should not be able to interfere in advertising.”

“I can’t comment on what advertising will come out in other markets, but our focus right now is on the US market. That’s where the conversation is really taking place,” Duggan added. “We’re seeing bartenders, we’re seeing Tequila drinkers really show an interest in this conversation. And this is not a new topic. Consumers have been calling for transparency from many other industries, not just Tequila. It’s happening across food and beverage. We anticipate this being something that consumers aren’t going to stop talking about.”