Altos is UK off-trade’s leading 100% agave Tequila

Pernod Ricard’s Altos is the number-one premium 100% agave Tequila in the UK off-trade, after the brand grew by 8% in value in 2023.

Citing 2023 full-year Nielsen data, Pernod Ricard UK brand director Josh McCarthy said Tequila and mezcal were the fastest-growing spirits categories in the UK, growing by 9.1%.

In the last 12 weeks of 2023, Altos reported growth of 22% in the UK.

“While we’re extremely excited about the Tequila buzz and growth, Tequila still represents 1% of total UK spirits sales – it’s still a small part of the total UK spirits category,” said McCarthy.

“But we’ve only got to look at what we call ‘guac’ markets – which is very fittingly named – which are global travel retail, Australia, Canada, and the UK.”

Pointing to Australia and Canada, he noted that Tequila represents 4% of total spirits sales in those markets.

While Tequila is now the third-biggest category in the US, McCarthy notes that it is growing from a lower base in the UK.

McCarthy said: “I think there’s a lot of historic baggage potentially that comes with Tequila in the UK that isn’t as prevalent elsewhere, shot culture and things like that, and years of Tequilas that perhaps weren’t as focused on quality.”

He noted there has been a “new wave” of brands made with 100% agave, like Altos.

The brand hopes to move past the category’s shot-slamming reputation in the UK and is looking to remind consumers that it can be mixed, such as in Margaritas and Palomas, or with tonic water.

When it comes to the company’s strategy for growing Tequila sales, McCarthy said the company is following in the footsteps of markets such as Canada and Australia, as “we’re nowhere near being a developed Tequila market like the US”.

He notes that Canada and Australia are “still winning with the Margarita” and ensuring “comprehension and understanding of what makes a good Marg”.

McCarthy highlighted an initiative in the UK, Altos’ Hot Lime ‘emergency’ delivery service last summer, which delivered limes to consumers who called a free phone line.

Margarita focus

For Altos in the UK, there will be a “laser focus” on Margaritas over the next 12 months, with “a little bit of play on the Paloma with Altos Reposado”, said McCarthy.

“In London, we’re seeing the Marg craze certainly hot up everywhere and every bar has a Margarita on the menu now. It probably wouldn’t have been the case a couple of years ago. But I think once you get out of the capital, that adoption of Tequila for sipping or in a cocktail is taking shape and slowly starting to evolve but at a slightly slower pace.”

Altos recently launched its ready-to-serve ‘bar-quality’ Margarita in major UK supermarkets, which can produce five to six servings. The brand also released a range of ready-to-drink canned Margaritas in Australia and New Zealand, but there are no plans to bring the cans to the UK just yet, McCarthy confirmed, as the focus will be on the bottled Classic Lime Margarita.

Altos was co-founded by bartender Dre Masso, who has been involved in the London cocktail scene for decades. As such, the UK remains a key market for the brand, with Masso often involved in events run by Altos, including the Tahona Society Competition.

“When you’ve got a product that was created by bartenders and for bartenders, it has instantly got a bit of credibility with the trade,” McCarthy said, of the brand’s popularity among bartenders.

In London, Altos recently launched its inaugural Margarita Masters competition for bartenders, with the hope of taking it nationwide in the future. “It’s something that we’re looking at for sure,” he said.

In London, the Margarita moved up four places into the top 10 most popular cocktails list (CGA top 50 cocktails. EPOS Cocktail Report 15.12.23), ahead of the Zombie and Piña Colada.

The Pornstar Martini remained in the top spot, followed by the Aperol Spritz (which moved up seven places), Sex on the Beach, Long Island Iced Tea, Espresso Martini, Spritz and Mojito. Tequila’s share of cocktails is now up to 11.9%, the CGA report noted.

The Margarita was also the most-searched cocktail on Google.

Meanwhile, Brown-Forman’s El Jimador was the biggest-selling 100% agave Tequila brand in the UK, data from IWSR in July revealed.