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Tequila ‘dominates growth’ in spirits

CGA’s latest research has revealed that growth of Tequila is ‘outpacing its counterparts’ in certain price tiers across spirits categories in the US.

Tequila takes up 18% of the spirits category in raw volume sales

CGA data by Nielsen IQ has shown that Tequila continues to be a ‘top three performer’ in the US on-trade spirits sector, alongside whiskey and vodka.

The spirit is said to ‘truly excel’ in North America, and may even start to ‘challenge whiskey and vodka’, with its growth ‘outpacing its counterparts in more than one price tier’. Tequila’s year-to-date (YTD) volume sales have reportedly grown 70% since last year.

Andrew Hummel, client solutions director – Americas, said: “Tequila will no doubt continue its ascension in terms of popularity and growth.

“What will be vital for suppliers and operators is collaboration – to improve their Tequila offering and identify what further opportunities can be capitalised on. CGA by NielsenIQ’s on-premise channel expertise and data-driven insights can help suppliers and operators alike to optimise their Tequila go-to-market strategies.”

Whiskey and vodka are the dominant subgroups regarding raw volume sales, with the two combining to make up more than 51% of the total spirits category in the on-trade in the US. Whiskey accounts for 26% of the category, while vodka takes up 25%.

Meanwhile, Tequila takes up 18% of the category YTD, and is the only spirit subcategory to have achieved a growth of share of more than 1%.

In comparison, rum and cordials have seen ‘modest share growth’ in the category, both up 0.1% YTD.

Tequila’s percent change in dollar sales is ‘higher in every price tier’ versus the same price tier in whiskey and vodka. Across all tiers the agave-based spirit is demonstrating stronger sales than other subcategories so far in 2022. The category’s price tier percent growth in ultra premium reached 171%, while premium saw growth of 133%.

In terms of raw dollar sales, the most recent data shows Tequila has generated more than US$8 billion over the 52 week period ending May 2022.

Premiumisation is also driving consumers to ‘trade up’ their go-to spirit choice, with 20% of Tequila drinkers opting for the spirit to be served neat, indicating a rise in the consumption of premium sipping Tequila.

Tequila sales are expected to generate US$24.19 billion by 2031, according to Allied Market Research.

We recently sat down with Mike Dolan, co-founder of Mijenta – the first Tequila to be come B Corp-certified.

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