Tension creates motion

Tim Croizat, a self-confessed “baby Pernod Ricard” has spent over two decades at Pernod Ricard, crisscrossing the globe from Australia to Cuba, London, Paris and now Mexico.

After more than a year in Mexico, Tim Croizat feels at home – the move has been transformative, both professionally and personally. “I don’t want to preach for my own chapel, but Mexico City carries such a fantastic energy and is the most amazing city in the world! The local gastronomy is mind-blowing and so are the mindset and energy of my Mexican colleagues. I feel like I’m the custodian of this moving energy that I can’t afford to drop!” he says.

At the helm of House of Tequila, Croizat brings a people-first approach to leadership and a love for food, great drinks and culture, which, he says, is a given because he was born and raised in Lyon, the original capital of French gastronomy. We caught up with Tim to talk about his career, leadership, global trends and discover why ‘tension creates motion.’

What made you decide to join the drinks industry?

I discovered the spirits industry at business school, after an internship with an alcohol distributor in France. I was drawn to spirits for the chance to manage global, high-engagement and highly profitable consumer goods brands. It ticked more than a few boxes, the main one being that I felt it was an industry that would make me travel.

What is your current role?

I am Managing Director of House of Tequila, overseeing Pernod Ricard’s tequila and mezcal business. It’s a business of around 300 people, mostly in our factories, spread across three sites in Mexico and five brands – tequilas Altos, Olmeca and Código, and mezcals Del Maguey and Ojo de Tigre.

Mexico City carries such a fantastic energy and is the most amazing city in the world!

What are your three key areas of focus?

My day-to-day job has three main parts. First, securing our agave supply (distilled to make tequila and mezcal) sustainably. Second, I work with Pernod Ricard’s local markets and the Crystal Brand Unit team to develop clear, ambitious marketing plans that maximise the long-term growth of our five brands. Third, I represent the group’s interests in the agave industry, including with industry bodies, federal and local governments, and local business ventures such as Almave, a non-alcoholic agave spirit.

What are the opportunities for the House of Tequila?

To capitalise on the group’s strong position, become a leader in its main markets and drive the category worldwide. Historically, two-thirds of the global agave business sits in the US and Mexico. However, traction and category dynamics are even more pronounced as they globalise than they were two years ago. The category is growing in many parts of the world, including Europe, with markets like the UK and, to a lesser extent, Spain, Greece and Italy. They are all on a bit of the agave wave. Asia is also joining the party, while Africa continues to drive strong growth, especially in Turkey and South Africa.

How would you describe your management style?

My management style is driven by people and culture, with a strong commitment to driving growth and making an impact. People motivate me most – it’s a big reason I chose this industry. Human interactions are central not only to the value we bring, but also to how we work and the culture we build. Curiosity also drives my management style. Having moved from Australia to Cuba to the UK to Paris and then Mexico, I’ve always been motivated by discovering new consumer occasions, motivations and cultures.

Do you have a leadership role model?

The beauty of working in the same business for many years is that I’ve been fortunate to work for many inspiring leaders. But one I would mention was the first CEO I worked with at Chivas Brothers in Australia, Christian Porta. He has always been an inspiration and would tell me, “tension creates motion”. At first, I found the notion a bit complex. But over the years, as I moved into more senior positions, I came to understand the value and subtlety of creating healthy tensions that ultimately drive motion. It strongly embodies the Pernod Ricard values in the best possible way. Those healthy tensions he mentioned were never conflictual – they always fostered healthy debate with the single ambition of making things move.

Creating healthy tensions that drive motion embodies Pernod Ricard’s values in the best way.

What behaviours do you need to be a leader in an international group like Pernod Ricard?

I see two nuances to this, one as a person and one as a manager. Adapting to different cultures personally comes down to humility. I’ve discovered this myself as a Frenchman thousands of miles from home, working in Australia. The first perception you’ll have to contend with, whether you are that way or not, is that locals might judge you by stereotypes about your nationality. That calls for a lot of humility, saying, “Okay, that’s the starting point.”

Managing people is a very different gig. You don’t necessarily adapt completely, because you can’t deny your own style. I don’t pretend to fully understand Latin culture at work, but having spent time in Cuba and now in Mexico, I think I understand Latino cultural motivations at work quite well. It’s both an intellectual and cultural challenge – and it’s never easy. You should never take it for granted. I try to lead by example and embody those values.

How do you see the spirits industry evolving over the next decade?

It’s the 100-billion-dollar question! Honestly, though, the biggest shift is the accumulation of post-COVID adverse factors. The big challenge is how long these adverse factors, such as the rising cost of living, will persist and whether they’ll change consumer behaviour for good. For example, if you have less money in your wallet, you may drink more at home and, consequently, need more convenience. Moderation is also driving our consumers, but we shouldn’t view that as a negative. It’s a challenge we should take on. Our job is to adapt, whether that’s through zero, low, or daily consumption. But I’m a huge believer that our industry has a big responsibility to be a social lubricant or social ignitor. It’s never been more needed.

What was the most defining moment of your career?

Arriving in Mexico a year ago. It felt like putting a coin back into the expatriation and global-travel machine. It was defining to get back on the road, but with a very different personal setup, because unlike when I was younger, I’m now with my wife and our two daughters. You have this little gang with you and you need to make sure they’re all good with all your challenges. I am also in a managing director role for the first time. You no longer just talk about business, marketing, or strategy. You need to be good with anyone in the business, from reception to production to finance to agronomy to everything. You don’t learn it from a book, you live it for real. You can prepare, but my first year in a general management role has certainly been defining.

What’s been your favourite campaign initiative during your career at Pernod Ricard?

Recently, we ran a powerful soccer World Cup campaign for Ojo de Tigre mezcal. Working with a local brewery, Cerveza Victoria, we jointly produced a huge national World Cup campaign in less than seven weeks. I saw the Mexican energy that made it happen at first sight. I think I’ve touched on the Mexican ability to move mountains!

What advice would you give your younger self?

Keep travelling. No amount of travel will make you a worse person – it will always make you a better one. It is the one piece of advice I’m trying to give to our daughters.

No amount of travel will make you a worse person – it will always make you a better one. It is the one piece of advice I’m trying to give to our daughters.

What’s your favourite cocktail?

Mezcalita with Del Maguey. The love story with the Mezcalita didn’t start here in Mexico. It started in a lovely taco restaurant in Paris, owned by a Mexican chef. I took my family there to tell them we were heading to Mexico City and to celebrate, I tried my first-ever Mezcalita. Ever since, it has been the default drink when people come to our home for dinner. It opens the palate like nothing else and is the best pre-dinner drink on earth!