Crains New York - July 30, 2012 - (Page 22)

Tequila station break Continued from Page 21 SOURCE LUNCH: MORRIS ADJMI by Theresa Agovino diamond-filtered Crystal Head Vodka. But the Clear Channel chief also gets a kick out of being an entrepreneur. Now coming up on the third anniversary of its launch, Casa Dragones is on track to double sales this year to 24,000 bottles, according to Mr.Pittman and co-founder Bertha Gonzalez Nieves. At a retail price of around $275, that would give the tequila well over $6 million in sales. Mr. Pittman insists that profitability isn’t that far away,not counting the $10 million to $20 million he’s invested in the venture. But the pleasure of owning a tequila that comes in signed, hand-engraved crystal decanters doesn’t have a lot to do with making money. Casa Dragones makes him feel 40 years younger because he believes it’s unlike anything else on the market—just like MTV back in 1981. “These kinds of businesses bring out the passion,”Mr.Pittman said in the offices of his private equity firm, Pilot Group, where Casa Dragones is based. “I’m almost addicted to it. It’s like with Clear Channel. I had no interest in being CEO. Then I made the mistake of looking at the business, and I went, ‘Wow, you’ve got this and this and this’—and suddenly I’m 18 years old again.” Still on the air While he remains bullish on the radio giant, and trumpets the virtues of popular stations, like Z-100, that are part of a national footprint, he may fare better with Casa Dragones. Debt-laden CC Media Holdings lost $144 million in the first quarter of this year, a 9% steeper loss than in the year-earlier period.Revenue rose 3% to $1.36 billion. Mr.Pittman owes his latest business fix to Ms. Gonzalez Nieves. A former commercial director for North America at Jose Cuervo, she was the first woman in Mexico certified as a maestra tequilera, or tequila expert. The two met at a Brooklyn party 2007, where Mr. Pittman told her of his idea for creating “a sipping tequila” that would be smoother than the best single malt Scotch.Ms.Gonzalez Nieves, as it happens, is not only a devotee of the art and history of tequila, but has long championed Mexico as a maker of luxury goods. She spent the next year scouting blue agave plants in tequila’s home state of Jalisco, and working with a master tequila maker whom she brought out of retirement to refine the fermentation and filtration processes. She and Mr. Pittman vetted the results until they got what they wanted—a smooth, clear, “platinum” spirit that includes a touch of aged tequila with its color filtered out. “We went through a year of exploration,” Ms. Gonzalez Nieves said. “We wanted to truly expand the tequila repertoire.” Since its launch, Casa Dragones has won applause from Oprah Winfrey, Martha Stewart and, perhaps even more important, celebrity chefs like Bobby Flay and Eric Ripert. But it has its critics, too. Tequila consultant Christopher Zarus believes that the brand’s extensive filtering removes too much of the flavor. He also thinks Casa Dragones is overpriced, and that its luxury image and beautiful packaging are only so much hype. “They’ll tell you it’s a more balanced flavor, but if you filter the heck out of it you’re taking away a lot of the character,” Mr. Zarus said.“They’ve done a great job with giving it cachet.” The co-founders say that the packaging matches the product, the flavor is complex and balanced, and that the clarity of the drink is part of the experience. “One of the secrets of Casa Dragones is we hang onto the agave flavor,” Mr. Pittman said. “You’ll pick up a little vanilla,a little pepper, pear,citrus and floral.By having [the color] clear, you don’t have your mind set on how it’s going to taste.” Casa Dragones may be a labor of love, but its co-founders had a shrewd sense of timing. While tequila remains a small segment of the distilled spirits industry—$6.2 billion in sales out of a $68.4 billion total—it’s growing quickly. The category was up 5.5% in 2011,outpacing the industry’s 3.4% gain. The super premium subsegment—where Casa Dragones fits in—grew by 11.5%, according to the Beverage Information Group’s 2012 Liquor Handbook. Mod architecture in historic proportions M “The high-class problem” Mr. Pittman, who spent a decade in private equity before joining Clear Channel, says there are several possible “exits”for Casa Dragones.They include a sale, as well as taking on new partners and expanding. But right now, he and Ms. Gonzalez Nieves aren’t thinking about anything except extending distribution to more cities and continuing to get the right people to taste the spirit and talk about it. “The high-class problem, which we probably will get, is demand will outstrip our ability to keep up,” Mr. Pittman said.“But so far we’re able to.” orris Adjmi is the favored architect of downtown’s developers for his ability to create modern buildings that fit seamlessly into historic neighborhoods. The New Orleans native, 53, has already put his stamp on Lower Manhattan with buildings like Scholastic’s headquarters at 557 Broadway, the Theory Building at 408 Greenwich St., Wilf Hall for NYU’s law school and the High Line Building at 450 W. 14th St. He also designed the Wythe Hotel in Williamsburg, Brooklyn, which has become quite a happening destination, and will soon open an office nearby. Meanwhile, he’s working on about seven condo projects downtown, as well as a film studio and an office building. I think it is really amazing to be able to see something that is just lines on a screen and then translate it into three dimensions. Architecture affects us in many ways: in the way we live and the way we experience cities.And it is my way of contributing to a city. tremendous job of keeping problems from occurring. Look at development on Sixth Avenue.South of 23rd is a historic district, and north isn’t. [The northern part] has all those giant not-very-interesting buildings. It is development run amok. And historic buildings and neighborhoods create value. TriBeCa is one of the most expensive neighborhoods, and it is a historic district, and there is development going on there. You haven’t designed a big skyscraper—is that a goal? Not necessarily. I don’t wake up saying I want to do a tower.I don’t see too many towers that I say, “Wow, I wish I’d done that.” Why are you opening an office in Williamsburg? What about architecture appeals to you? Since I did the hotel I was going out there, and it was just so vibrant. It has a different kind of energy. And it will be a separate business. I’m working for an Italian developer ALISON EIGHTEEN that is doing some projects 15 W. 18th St. in Red Hook [Brooklyn], (212) 366-1818 converting a warehouse www.alison eighteen.com into artists’ studios. WHERE IT WAS Is it a strategy to mostly work downtown? JOIN CRAIN’S ADVISORY PANEL Looking for readers to share views and opinions. I think the Scholastic Building established a niche for me.[Architecture critic] Paul Goldberger said it would teach a generation of architects how to build in a historic district.It was viewed as a sensitive new building. That is how my practice developed. I’ll work my way uptown. What is the secret to building in historic districts? AMBIENCE: Sophisticated casual, with eggplant leather banquettes and whimsical wallpaper. WHAT THEY ATE: Bottle of sparkling water, two iced teas Beet salad appetizer Arugula fennel salad Mushroom polenta entrée Red Hawaiian sea bass entrée Regular coffee and espresso Tab: $113.45, including tip Do you worry that there is more interesting architectural work going on overseas? Maybe the U.S. is a little behind. But New York has been going through an architectural renaissance. Herzog & de Meuron and Jean Nouvel are doing some great projects here.There is a focus on architecture as a way to sell projects. Is that a good trend for architecture, or is the concept of starchitects hurting creativity? Sign up for FREE today. www.crainsnewyork.com/advisory CRAIN’S NEW YORK BUSINESS I approach a project from the context first and I try to subsume my ego. Every project doesn’t need to be a loud statement. Some can be more vocal, some more contextual. There needs to be an edge that makes it special, but it doesn’t need to be screaming all the time. A building can stand out by fitting in. Critics have accused the Landmarks Commission of creating too many landmarked and historic districts, which they say restricts development. Your reaction? As far as I’m concerned, they do a I think it is branding, and that has happened to everything, whether it is shoes or buildings. We should create good buildings and not just brand names. Every city wants a Frank Gehry museum, but then they all look the same, although slightly modified. I think that commoditizing buildings creates cookie-cutter architecture, and whether or not they are great buildings, it is still not something you want to see. I think Gehry is commoditized. He is a very talented architect, but a lot of his buildings look the same. But maybe people think I do all same stuff too. ■ INSIDE TIP: The restaurant offers 20% off cocktails during its daily happy hour. 22 | Crain’s New York Business | July 30, 2012 http://www.allisoneighteen.com http://www.crainsnewyork.com/advisory

Table of Contents for the Digital Edition of Crains New York - July 30, 2012

Crains New York - July 30, 2012
Contents
In the Markets
The Insider
Business People
Real Estate Deals
Opinion
Alair Townsend
Greg David
Small Business
Corporate Finance
Classifieds
For the Record
From Around the City
New York, New York
Source Lunch
Out and About

Crains New York - July 30, 2012