Analysis: Spirits in global travel retail

30th January, 2018 by admin

Tequila

The Tequila segment is the smallest of the eight DF and TR spirits categories examined in this report. Its share of wine and spirits is less than 1%, but, nevertheless, the segment has good growth prospects.

A recent forecast to 2021 from IWSR names Tequila, whisky and gin as the biggest contributors to total global spirits growth in the next five years. IWSR also says that Tequila will make its largest gains in the US.

In DF and TR, brands such as Patrón and Jose Cuervo have embarked on a premiumisation mission for Tequila.“The category is showing positive trends, and at Patrón we are almost 13% up with our Tequila portfolio,” says John Kilmartin, vice president, GTR at Patrón Spirits International. He notes that the company’s Roca Patrón line is performing particularly well in the channel.

Tequila may be up against stiff competition from other white spirits, such as gin and vodka, but confidence abounds.

“In travel retail, we strongly believe the category will excel again in 2018, [helped by] growing interest and distribution in Asia Pacific and education about the agave category,” says Tina Ingwersen-Matthiesen, member of the Borco board, maker of Sierra Tequila.

Looking to the future, David Phelan, GTR director at Proximo, which handles Jose Cuervo, says: “We will be bringing some surprises for Cuervo in terms of new products and activations to key markets in the US, Spain, Germany, Italy and Australia, where we are seeing continued growth.”

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