tito’s vodka
O
“Tito” Beveridge, the founder of Tito’s Vodka
ne year after the completed integration with a Texas competitor, United Airlines has, over a short period, now become a much bigger player in the air transport
}
world. At about the same time as the merger was in formation, a feisty Texas business with a colorful founder was just picking up momentum and now stands on the brink of a becoming a major player in its respective industry. The two companies, United Airline’s and Tito’s Vodka are finding common ground 35,000 feet in the air. It was spring of last year, United Airlines, constantly on the lookout for ways to enhance its passenger experience, decided to offer one vodka brand, and one vodka brand only, in its beverage cart. Tito’s now sells for US$7.99 for a 50ml bottle and is complementary in the airline’s premium cabins. Lynda Coffman, United’s Vice President of Food Services, was involved the in the decision. “When we looked at the liquor selections, the new Tito’s just caught our interest,” she said. “not only because it is a really great product, but it has an interesting story behind it as well.” As luck would have it, United’s desire for a new vodka came at a fortuitous time for Tito’s as well, said the company’s founder Tito Beveridge. “Ryan, our National Accounts Director is based in Chicago, and so are the buyers for United Airlines,” Beveridge tells PAX International. “We had begun to produce 50mls and decided to shop around to see if any airlines would be interested in carrying Tito’s Handmade Vodka.” But to get in the trolleys at United, Tito’s had to go through standard tendor and blind tasting. Coffman remembers liking the vodka’s smooth flavor, making it in her estimation a perfect fit for a martini. Airline supply is all about adequate volume. “We are very large right now, and we always have to ensure the volumes are there to support what we need,” Coffman says. Tito’s has purchased new equipment and opened up new lines at its Austin distillery since then. The company says the vodka is still produced the same way as Beveridge—a former groundwater geologist who looked for oil and natural gas—had in mind when he formed the company, building up credit card debt because he couldn’t get financing. With six distillings in its production process Tito’s was immediately aiming for the premium vodka category. The company reached out to a high-end clientele advertising in the New York Times and other places. Since then, Tito’s has earned awards and attention in the crowded spirits category that is seeing upstart craft distillers at one end and high-budget mega spirits sellers at the other. Tito’s is bottled by an Austin-based company called Fifth Generation and in 2011 earned an estimated US$85 million in revenue. Still, the company has been able to maintain a retail price point of about US$20, far below pricier vodkas, such as Grey Goose, which goes for about US$30. Tito’s has also won Double Gold Medal in the San Francisco World Spirits Competition and earned a score of 95 by Wine Enthusiast for its purity and clean taste. Since the agreement with United, Tito’s has been doing tastings at United Clubs in a few cities. “It has definitely given us some leverage with our national account base,” Beveridge said. “It has also been a great way to begin getting exposure internationally. I have had quite
A match made in
Texas United Airlines is nearing its first year of a service agreement with Tito’s Vodka, and the Austin-based distiller is spreading its wings for international sales by Rick Lundstrom
www.pax-intl.com | PAX INTERNATIONAL | 57